Fair Wages and Healthy Families Act “Proposition 206” Sophia Alonso

Background November 8, 2016 - Prop 206 on the ballot Approved by 58.33% of voters December 2016 - Business groups challenged Prop 206 March 14, 2017 - Arizona Supreme Court unanimously upheld Prop 206 2 Components Paid sick leave Minimum wage standards

Minimum Wage Standards January 1, 2017 – January 1, 2020

Paid Sick Leave Basics Provide a minimum of 1 hour paid sick leave for every 30 hours worked Annual requirements Less than 15 employees – 24 hours a “year” More than 15 employees – 40 hours a “year” Carry over Begin accruing on July 1, 2017 New employees can wait 90 days to use leave

Paid Sick Leave Basics Employees entitled to paid sick leave Full-time, part-time, temporary Compensating sick leave “Same hourly rate as hours worked” With the same benefits Including health care benefits Note: Bonus, commission, tipped employees AZIC recommends “paid sick time that is based on the average hourly rate for all wages (including commissions) paid during the previous 90 days.”

Other Requirements Expanded use of sick days Medical care, mental or physical illness, injury or health condition of employee or family member of employee Family member of employee Child regardless of age, biological, adopted, stepchild Parent Person married to employee Grandparent, grandchild, sibling “Any other individual related by blood or affinity” Domestic violence involving the employee or a family member Public health emergency

Must Revise Policies and Procedures Cannot require employee find a replacement worker as a condition for approving time off Cannot contract around paid sick leave Cannot count as “unexcused” absence or toward discipline Cannot retaliate or discriminate Recommend tracking separately from other types of leave because coverage is different

Must Revise Policies and Procedures Cannot require a doctor’s note for less than 3 consecutive days Cannot require doctor’s note explain details or nature of health condition only that leave used for reasons covered Method for requesting sick leave Verbal, electronic, written Cannot deny leave for lack of notice for unforeseen needs without written policy given to employees

Administrative Requirements Post approved notice of rights in all applicable languages by July 1 Paychecks In or on an attachment to the employee’s paycheck Must contain Amount of earned sick time available to the employee Amount of sick time used to date in the year Amount of pay time the employee received as earned sick time Payroll records Records showing hours worked for each day worked Wages and paid sick time paid to all employees for a period of 4 years

Consequences Of Noncompliance Any action against an employee 90 days after the employee used sick pay creates a presumption the employer retaliated against the employee and violated the law Presumption employer violated law if does not comply with record keeping requirements Anyone can file a claim with the AZIC Long statue of limitations Treble damages/fines AZIC can inspect all your employee records during investigation

Consequences Of Noncompliance Person filing a complaint not required to exhaust administrative procedures A private party or law enforcement agency can file a civil action in court and get attorney’s fees Subject to civil penalties At least $250 for a first violation At least $1,000 for subsequent or willful violation

Questions Sophia Alonso Work phone: (602) 257 – 5232 Email: salonso@steptoe.com