Arizona’s Prop 206 Sick Leave Laws Effective July 1 — Are You Ready?

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TSheets recently conducted a study of Arizonans to find out how much they knew about Proposition 206, part of which will change sick leave policies for employers across the state.

We found that 4 in 10 people surveyed said they didn’t know the changes were coming.

But beginning July 1, 2017, employers will be required to pay eligible employees paid sick leave accrued up to an amount based on the size of the company (aka its number of employees).

It’s an important step for the state — Prop 206 also increases Arizona’s minimum wage requirements — as many states across the nation are creating similar mandates. But businesses should be acutely aware of their obligations under the new law. There could be penalties for businesses who fail to comply.

 

Get more information on time tracking, including tracking and calculating your employees’ sick days and other paid time off here.

Need help now? Call us at 888.836.2720.

Employers, take note

Proposition 206 mandates that employers offer their employees accrued paid sick leave, effective July 1, 2017. Not all businesses will be required to offer the same amount of leave, though. The amount of sick leave an employee may accrue is based on the size of the employer.*

Depending on the number of employees a business has, there will be a minimum requirement of paid sick leave they’re required to pay their team. If your business has more than 15 employees, you’re required to allow them to accrue 40 hours of sick leave per year. If you have less than 15 employees, that minimum is 24 hours. The rate of that accrual is one hour per 30 hours of time worked, and it includes exempt and nonexempt employees (salaried employees are classified as employees who work 40 hours per week).

Additionally, under the new law, employers:

  • Must give employees notice of their right to paid time off.
  • Must post a notice about employees’ rights and keep detailed records of the business’s policies for the team to access.
  • Must include updated information about employee’s available sick leave on their paycheck.
  • May require employees to provide documentation of their situation after three consecutive days of work missed for medical reasons.
  • Must understand that paid sick leave cannot be used as a reason for disciplinary action.

 

What to do now

When new laws are rolled out, it’s always important to make sure that your business is in an affected area. Check with your local government to ensure that the laws apply to you. In addition, consult your accountant and lawyer to find out which employees will accrue the sick leave and how to proceed if you have employees in different areas. Review your current policies to ensure you have your records in order and changes have been made wherever necessary.

Then carefully track your employee’s time and sick time with TSheets for the most accurate compliance. TSheets’ sick leave function automatically tracks and organizes those hours for you to make payroll simple and painless.

 

Need help setting up your TSheets account to track sick leave? Call us at 888.836.2720.

 

What Prop 206 means for employees

A previous survey by TSheets found that 85 percent of respondents say sick leave is important. Sick leave covers more than just the days you miss work with a cold or the flu.

  • You can use the paid sick leave in hourly increments.
  • You can use it to take care of your family members.
  • You can use it to recover from or take preventative measures against domestic violence, sexual violence, or stalking.
  • In some cases, unused hours carry over into the next year, while some employers can choose to pay employees for unused time instead.

 

Not in Arizona? See new sick leave Ordinance changes in Chicago and Clark County, Minneapolis and St. Paul, and Georgia.

New to time tracking? TSheets tracks employee hours, sick leave, PTO, and more!

 


*As always, TSheets does not offer legal or accounting advice for your business. Check with your lawyer and accountant before making policy changes at your company.

8 Comments

  1. Brett Barry says:

    Does TSheets allow for a yearly cap of sick time accrued? For example, if accruing 1 hour per 30 hours worked with a maximum of 24 hours of sick time earned per year, what happens if an employee uses 8 hours? Does TSheets have a setting that will cap at a maximum of 24 hours PER YEAR instead of a 24 maximum at any time? After using the 8 hours, we don’t want sick time to start accruing again until the year has reset. This is for Arizona. Thanks.

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  2. Skylar Barsanti says:

    @Brett Barry, Thanks for your comment! Without getting too technical here, TSheets does offer a yearly cap for sick time accruals as well as different options for other sick, holiday, and PTO settings. We’re happy to go into more detail together, so feel free to call our excellent Customer Experience team at 888-836-2720.

    Happy time tracking!

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  3. Tonya R. says:

    Do you know how it works if your part time employees don’t work enough hours to accrue 24 hours? Our part timers work 10 hours a week or less. Do we have to offer a flat 24 hours per year then? Thanks in advance.

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    Myranda Mondry Reply:

    @Tonya R., it depends on the size of your company and how many employees you have. From what I can tell, the Prop states that employees should earn one hour of sick time for every 30 hours worked — whether they are part-time for full-time. But double check with your accountant or your employment counsel to be sure!

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  4. M.b says:

    Walmart gave their employees 40 hours sick hours based on if you have vacation time to pay for it. I don’t think that is legal according to the state mandate

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  5. Juan says:

    is there a different between hourly pay employee or pay per production employee? for example; agriculture employee

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    Myranda Mondry Reply:

    @Juan, good question! I’m willing to bet that pay-per-production employees accrue sick time in the same way hourly employees do … but check with your employment counsel to be sure. That being said, it’s always a good idea for this type of employee to track time! That way you can be sure you’re complying with minimum wage, overtime, and sick time laws.

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    Juan Reply:

    @Juan, I guess I wasn’t clear on the question. The fact these employees get paid per production indicate that the hours that they actually work are insignificant to them and can’t be tracked. They (we) select to work hard and fast for less time producing amount of work to be paid double than had we worked per hourly rate. I think prop 206 will work against them in this case.

    [Reply]

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