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Arizona's Industrial Commission Releases New Guidance Regarding Paid Sick Leave Law


On May 19, 2017, the Industrial Commission of Arizona released new FAQs which clarify implementation of the Fair Wages and Healthy Families Act (Proposition 206). Specifically, the FAQs address many aspects of Arizona’s Paid Sick Leave law and how employers are to implement these requirements effective July 1, 2017.

As discussed in the Nov. 30, 2016, edition of Compliance Corner, Proposition 206 requires employers with 15 or more employees to provide employees with up to 40 hours of paid sick leave in a calendar year. Employers with less than 15 employees must provide no less than 24 hours of paid sick leave during a calendar year. Employees accrue sick leave at a rate of one hour per every 30 hours worked up to a maximum of 40 hours over the span of one year. Time begins accruing as of the first day of employment, but employers may require a 90-day probationary period before sick time may be used. Generally, employees may use sick leave for themselves or to care for an employee’s family member (as defined under the law).

The new FAQs provide detailed information regarding sick time accrual, permissible uses of sick time, calculation procedures, notice/document/recordkeeping requirements, carryover methods and other special circumstances employers may encounter.

Employer is defined as any corporation, proprietorship, partnership, joint venture, limited liability company, trust, association, political subdivision of the state, individual or other entity acting directly or indirectly in the interest of an employer in relation to an employee, but does not include the state of Arizona or the United States. An employer with employees in multiple states will not include their non-Arizona employees in their total employee count for earned paid sick time purposes.

Applicable employers are required to begin accruals as of July 1, 2017. However, employers are required to notify employees of their rights and post the earned paid sick leave announcement in the workplace prior to July 1st.

Press Release »
Proposition 206 FAQs webpage »
Proposition 206 FAQs full copy »
Earned Paid Sick Leave Time Poster »