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Good Morning, this message is time sensitive:

Proposition 206 sick pay law kicks in 7-1-17


Does it affect youAre you readyJuly First there is a new Arizona Sick Pay law that starts.  This was part of the bill which increased Minimum wages to $10.00/ hour.  There did not seem to be much focus  on this issue when the election was going on but OH Well, here it is!


Who gets to comply with this:


·         Do you have over 15 employees or more?

·         Are your gross receipts over $500,000?  (Not net but gross)

·         Are you engaged in interstate commerce or production of products for interstate commerce?


BAM! You get to comply. 


There aren’t many of us that didn’t these conditions.


If you do not meet these conditions you can continue as usual.  But how many of us do not generate $500,000 in gross revenue?  Or have a client that is out of state? 


Here is how this works and if you want to get into “what is the definition of it?” see our friends in the legal profession.


For every 30 hours worked, (this is the new full-time figure, It looks like 40 is gone) you earn one hour of sick leave.  Remember this is for every 30 hours and has no bearing work week or pay period.  So, when a staff person has worked 30 hours in however long it takes, they now have an hour of sick time. 


Your part time people can now accumulate paid sick time.  (Yet another unintended push towards self-employed people or 1099 workers.  We are going to become a nation of self-employed people if the trend continues.)


If the staff count is over 15 people then the maximum sick time they can accumulate is 40 hours per year.  If you have 15 or less the max accumulation of sick time is 24 hours per year.  Part time employees max out at 24 hours max paid sick leave and full time (30-hour people) can accrue up to 40 hours of sick time.


You can carryover your sick time to the next year but the cap to transfer is 40 hours for those with over 15 staff and 24 hours for those 15 and under in staffing.  But accumulated sick time does not have to be paid out upon employee termination. 



  • Are prohibited from taking an adverse action within 90 days of an employee’s protected activity raises a “rebuttable presumption” of unlawful retaliation that can only be rebutted by clear and convincing evidence of permissible reasons for the action.
  • Employers cannot impose any policy that results in discipline for use of paid leave.
  • Employers may, but are not required to, loan leave time to an employee before it is accrued.
  • Leave can be used in the smallest increment the employer’s payroll system uses to account for other absences or use of time.
  • For leave of 3 or more consecutive days, employers may require reasonable documentation) that leave was used for a permissible purpose.
  • Employers must retain records of paid sick leave accrual and usage for 4 years and provide records to employees on reasonable request.
  • Failure to maintain records creates a rebuttable presumption that the employer violated the law.  (Guilty till you prove yourself innocent.  I thought it was supposed to be innocent until proven guilty?
  • Employers must post a notice in the workplace that outlines employees’ rights and protections under Prop. 206.


Penalties and Remedies:

  • Employees can file an administrative action with the Arizona Industrial Commission or the employee could instead file a civil action in court.
  • Damages: For failure to provide or pay for earned sick time, employees may recover:
    • the amount of sick time owed
    • interest


Paid sick leave can be used for an employee’s medical care, an employee’s need to care for a family member, a public health emergency, or addressing domestic violence.


So here is your thumbnail sketch of what the new sick time law requires.  (Fine print disclaimer: this is not intended to be exhaustive nor legally accurate, kind of like asking questions of the IRS regarding a tax issue.  So, you need to consult the employee experts.)


I think this makes another legitimate reason to drink Guinness.



Posted 4:32 PM

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