Arizonas Paid Sick Day Requirements - Effective July 1, 2017

As you may be aware, Arizona's new paid sick time law goes into effect on July 1, 2017. Under the new law A.R.S. §§ 23-371 to -375 ("Statute"), all employees, including full-time, part-time, exempt and non-exempt, are entitled to paid sick leave. Failure to comply with the Statute can subject the employer to significant penalties. Below are some key points to help employers ensure company policies are in compliance with the new law.

The Accrual Process

• All employees begin accruing earned paid sick time at the commencement of employment or July 1, 2017, whichever is later.
• Employees accrue a minimum of one hour of earned paid sick time for every 30 hours worked. Employees who are designated as exempt under the Fair Labor Standards Act and paid a salary are treated as working 40 hours per week for accrual purposes (special rules apply for commissioned employees). The minimum requirement for paid sick time per year depends on how many employees an employer has.