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

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

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

4. 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

5. 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.”

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. Questions Sophia Alonso Work phone: (602) 257 – 5232