Arizona Proposition 206 (2016), the Fair Wages and Healthy Families Act (the “Act”) continues to impact employers in 2018. As of January 1, Arizona businesses must pay employees a minimum wage of at least $10.50 per hour (employers may, however, pay those employees in tip-appropriate positions under law up to $3 per hour less than the applicable minimum wage). The minimum wage will increase to $11 per hour in 2019, $12 per hour in 2020, and thereafter increase annually depending on potential cost of living adjustments. Generally, all employers must pay the minimum wage, although certain governmental entities and “small businesses” (i.e., those rare employers that gross less than $500,000 in annual revenue and that are otherwise not subject to the federal Fair Labor Standards Act) are exempt. Full-time, part-time, and even temporary employees must receive the minimum wage increases.
While the Act does contain an exemption for certain small businesses as to the minimum wage, no such exemption exists in connection with the Act's paid sick leave requirements. Except for certain government entities, all employers large and small must provide their employees sick leave benefits that comply with the Act. To avoid compliance questions and potential abuse of the Act's benefits, employers should put in place written policies that address sick leave benefits.
If you have any questions regarding the various aspects of the Act, compliance with it, and how it may impact your business, please do not hesitate to contact the attorneys at Farhang & Medcoff for assistance.