In November 2016, Arizona voters approved the Fair Wages and Healthy Families Act (the Act) which included provisions on paid sick leave. Beginning on July 1, 2017, virtually all Arizona employees will be entitled to accrue paid sick leave. 

• Employers must provide paid sick leave to full-time, part-time and temporary employees regardless of whether the employees are exempt or non-exempt.   
• Employees who work for employers with 15 or more employees must accrue a minimum of one hour for every 30 hours worked, up to 40 hours per year, unless the employer selects a higher limit. 
• For employees who work for employers with fewer than 15 employees, they accrue up to 24 hours per year, unless the employer sets a higher limit.
• Employers that already offer paid leave policies may meet the requirements of the Act if the leave can be used for the same purposes and under the same conditions as the Act requires.

Arizona employers should ensure that they are ready to comply with the Act when it becomes effective in a little more than a month from now.

The Act includes notice provisions, posting requirements, requirements for information to be included on paychecks, as well as specific provisions on reasons sick leave can be used and what documentation employers can require. The Industrial Commission of Arizona has provided answers to “Frequently Asked Questions” as well as Arizona Earned Paid Sick Time posters in both English and Spanish.

If you have questions about the Act or how to modify your company’s existing policies, contact experienced counsel for advice and information in this changing area of the law.

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