14 April 2017 Arizona minimum wage hike proceeds despite challenge, paid sick leave also required starting this year The Arizona Supreme Court unanimously upheld the voter-approved Proposition 206, The Fair Wages and Healthy Families Act. As we previously reported, on November 8, 2016, Arizona voters approved Proposition 206, which will increase the minimum wage incrementally to $12 an hour by January 1, 2020 and establish a statewide paid sick leave requirement effective July 1, 2017. On December 15, 2016, a group of Arizona businesses, Chambers of Commerce, and individual citizens filed a lawsuit, challenging the constitutionality of the Act. On December 21, 2016, the trial court denied a motion to temporarily halt implementation of the Act pending resolution of the legal challenge. The trial court's ruling was appealed to the Arizona Supreme Court. On December 29, 2016, the Supreme Court denied a request to temporarily halt implementation of the Act while the Court considers whether to take up the appeal. As a result, employers were required to comply with the minimum wage requirements under the Act beginning on January 1, 2017. On March 14, 2017, the Supreme Court unanimously rejected the business group's lawsuit. Effective January 1, 2017, the state minimum wage increased to $10 an hour; and will increase to $10.50 effective January 1, 2018; to $11 effective January 1, 2019; and to $12 effective January 1, 2020. Effective January 1, 2021 and each January 1st thereafter, the minimum wage will increase based on inflation. Employees who customarily and regularly receive tips or gratuities may be paid a wage of up to $3 less than the minimum wage, as long as weekly tips and wages add up to equal at least the minimum wage in effect at that time. The 2017 minimum wage poster can be found here. Effective July 1, 2017, all employees of Arizona employers (except the state of Arizona and the federal government) must accrue a minimum of one hour of paid sick leave for every 30 hours worked. Employers of 15 or more employees must accrue and allow for use for each employee at least 40 hours of paid sick leave per year. Employers of less than 15 employees must accrue and allow for use for each employee at least 24 hours of paid sick leave per year. An employer may choose to set a higher limit. The Arizona Industrial Commission issued a poster to be used in notifying employees of the paid sick leave law. Information regarding the amount of paid sick leave taken and available to the employee must also be given to the employee with their regular paycheck. For detailed information on the minimum wage and paid sick leave requirements, go to the Commission's website. Document ID: 2017-0638 |
