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May 23, 2017

Arizona Industrial Commission Updates Minimum Wage and Earned Sick Time FAQs

To assist users with better understanding Proposition 206 (The Fair Wages and Healthy Families Act) and its implementation, the Arizona Industrial Commission recently updated the FAQ’s for minimum wage and earned paid sick time requirements.

Proposition 206 is a state-wide ballot initiative that passed in November of 2016. The measure has two parts: 1) a state-wide minimum wage increase and 2) mandatory employer-provided sick leave. As a result of its passage, the minimum wage in Arizona increased to $10/hour by January 1, 2017, and will increase incrementally up to $12/hour up until January 1, 2020 after which annual cost of living increases will be made based on the consumer price index.

The initiative also established the requirement that as of July 1, 2017, employers must provide employees with sick leave benefits, accruing sick time at a minimum of one hour per every 30 hours worked. There are various threshold limits for small employers (those under 15 employees) and large employers (those over 15 employees).

For more information, contact AnnaMarie Knorr at (602) 451-0658.