Ramifications of Prop 206 AZ Minimum Wage Law
Following is a short guide to the schedule of increases now mandated due to Proposition 206. As of 2018 the minimum wage pay is $10.50; in 2019 it will go up to $11.00; and 2020 it will go up to $12.00/hour.
Now to the leave. Employers will have to give employees one (1) hour of paid sick leave per 30 hours worked. Employers with fewer than 15 employees must give each worker 24 hours of paid sick time per year. Employers with more than 15 employees must give each worker 40 hours of paid sick time per year. Prop 206 also defined the conditions under which sick leave may be used: physical or mental illness; to care for a family member; a public health emergency; domestic violence; sexual violence or stalking.
If your business already has a PTO (Paid Time Off) policy, then you do not have to have additional sick leave as your policy allows PTO to be used as noted above. And… you give the minimum number of hours to the employee. I recommend adding the reasons an employee can take paid sick leave (as I stated above) to your PTO policy. If this is all new to you, then you should create a sick leave policy using the guidelines I just mentioned.
By the way, if you don’t follow this mandate, the AZ Industrial Commission can levy fines and penalties along with requiring back pay to be paid to the employees.
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