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Prop 206 Compliance in Light of New July 3rd Guidelines

Posted by Timothy Medcoff | Jul 19, 2017 | 0 Comments

Just when you thought you'd successfully mastered the nuances of the newly imposed regulations of Prop 206 Paid Sick Time; the Industrial Commission of Arizona (ICA) issued additional guidelines after the Prop 206 July 1st effective date which may impact both new and current policies.

 New ICA Guidance

  • PST Accrual - Employers cannot count time that was accrued or used before July 1.  To support its position, the Commission relies on the language in ARS Section 23-372(D)(1) which says earned PST begins to accrue at the commencement of employment or July 1, 2017 whichever is later.
  • PST Requests - The new guidelines further clarify that a friend, family member, medical provider or anyone else may request PST on behalf of an employee (e.g., incapacity). 

  • Incremental PST - The new guidelines now define the "smallest increment that the employer's payroll system uses" as whatever policy or practice is used to account for absences or used for other id time off policies.

 Non-compliance can be costly with initial fines starting at $250 and increasing thereafter.  Besides legal fines, you could face expensive and time-consuming wage complaints and other legal claims. 

 Compliance Tips

  • Post the required notices at your workplace. One suggestion is to email employees a copy of the ICA's required poster with your compliant paid sick time policy.  The ICA's model notices are available in English (Earned Paid Sick Time (English) Poster) and Spanish (Earned Paid Sick Time (Spanish) Poster.) 

  • Provide all employees with a written notice of the new law and its requirements. 

  • Include on all employee paystubs (or in a separate attachment), the employee's available earned paid sick time, the employee's earned paid sick time used year to date, and the amount of pay earned as earned paid sick time.  

 If you have questions on how this new guideline affects the application of Prop 206 to your pre-existing PTO policy (i.e., a policy in effect before July 1) or a newly drafted provision, please contact one of F&M's labor and employment attorneys.  We are here to help ensure compliance with this complicated new law.

About the Author

Timothy Medcoff

Tim Medcoff is an AV Rated attorney who defends clients in the areas of product liability...

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