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Arizona Updates Frequently Asked Questions On Fair Wages and Healthy Families Act

Author: Jody Rodney/Thursday, June 1, 2017/Categories: Compliance Corner

Overview.  It was previously reported that the Arizona Industrial Commission of Arizona (ICA) issued a list of frequently asked questions (FAQs) on the “Fair Wages and Healthy Families Act” (Prop. 206).  On May 19, 2017, the ICA updated the FAQs to include more information on both the minimum wage and earned paid sick time provisions.

Background.  On November 8, 2016, voters in Arizona approved the Proposition 206 that raised the minimum wage from $8.05 per hour as follows:

$10.00 per hour, effective January 1, 2017;

$10.50 per hour effective, January 1, 2018;

$11.00 per hour effective January 1, 2019; and

$12.00 per hour effective January 1, 2020.

Employers are still allowed to pay tipped employees $3.00 less per hour, if combined wages plus tips are not less than the minimum wage rate. 

In addition, Proposition 206 provides that an employee beginning July 1, 2017 accrues a minimum of one hour of earned paid sick time for every 30 hours worked. Purposes for which employees may use earned paid sick time include the following: (list is not exhaustive).

  • Employee’s mental or physical illness;
  • Employees need for medical diagnosis;
  • Care for family member with a mental or physical illness;
  • Care of family member in need of medical diagnosis;
  • Employees place if business being closed due to a public health emergency;
  • Care for a child whose school has been closed due to a public health emergency;
  • Medical attention needed for employee or family member to recover from domestic violence, sexual violence or stalking.

“Family Member” for which paid sick time may be used includes:

Regardless of age: Biological, adopted or foster child, stepchild or legal ward, a child of a domestic partner, a child to whom the employee stood in loco parentis, or an individual to whom the employee stood in loco parentis when the individual was a minor;

A biological, foster, stepparent, or adoptive parent or legal guardian or an employee or an employee’s spouse or domestic partner or a person who stood in loco parentis when the employee or employee’s spouse or domestic partner was a child;

A spouse legally married under any state law or a domestic partner of an employee as registered under the laws of any state or political subdivision;

A grandparent, grandchild or sibling (whether of a biological, foster, adoptive or step relationship) of the employee or employee’s spouse or domestic partner;

Any other individual related by blood or affinity whose close association with the employee is the equivalent of a family relationship.

On December 15, 2016, a group of Arizona businesses, Chambers of Commerce, and individual citizens filed a lawsuit challenging the constitutionality of Proposition 206. The Arizona Supreme Court unanimously rejected the challenge.

For a copy of the ICA FAQs and please click on the link provided below:

https://www.azica.gov/frequently-asked-questions-about-wage-and-earned-paid-sick-time-laws.