Arizona’s New Paid Sick Leave Requirements

Arizona’s New Paid Sick Leave Requirements

You may have been aware of the increase to the Arizona minimum wage to $10 per hour that went into effect on January 1^st, but did you also know that the same law approved by voters created a requirement for employers to provide paid sick leave that will go into effect on July 1, 2017?  Starting on that date, employees at all Arizona companies start to accrue paid sick leave at a minimum rate of one hour of paid sick leave for every 30 hours worked.  Employers can cap the annual accrual and use at 40 hours (smaller employers with less than 15 employees may cap it at 24 hours).  The accrued paid sick leave is not required to be paid out to employees at separation.

If you already offer your employees a paid leave policy (PTO, vacation, sick leave) that is sufficient to meet the accrual requirements of the law and may be used for the same purposes and under the same conditions as the law, you are not required to provide additional paid sick time.

Employers must give written notice to employees about the new paid sick leave policy by July 1, 2017 or at the commencement of employment for all employees hired after that date.

For additional information, The Industrial Commission of Arizona has a list of Frequently Asked Questions about the law.