Tag Archives: Arizona

2018 MINIMUM WAGE CHECK-UP

With various cities and counties having enacted local minimum wages and 18 states (Alaska, Arizona, California, Colorado, Florida, Hawaii, Maine, Michigan, Minnesota, Montana, Missouri, New Jersey, New York*, Ohio, Rhode Island, South Dakota, Vermont, Washington) are increasing their own minimum wages on January 1st (December 31st for New York), employers should take time to verify that they are meeting the minimum wage requirements of their state/city/county.

The below chart sets forth the minimum wage effective January 1, 2018.

employer PAYS $1.50/hr towards medical benefits$11.91

Federal $7.25
State City/County  Amount?
Alabama  $7.25
Alaska*  $9.84
Arizona* — all cities/counties except …  $10.50
Flagstaff* $11.00
Arkansas  $8.50
California* — all cities/counties except …                                  small employer (25 or less) $10.50
large employer (26 or more) $11.00
Berkeley  $13.75
Cupertino* $13.50
El Cerrito*  $13.60
Emeryville                                           small employer (55 or less) $14.00
large employer (56 or more) $15.20
Los Altos* $13.50
Los Angeles                                         small employer (25 or less) $10.50
large employer (26 or more) $12.00
Malibu                                                  small employer (25 or less) $10.50
large employer (26 or more) $12.00
Milpitas* $12.00
Mountain View* $15.00
Oakland $12.86
Palo Alto* $13.50
Pasadena                                             small employer (25 or less) $10.50
large employer (26 or more) $12.00
Richmond*                                             employer does NOT pay $1.50/hr towards medical benefits $13.41
employer PAYS $1.50/hr towards medical benefits $11.91
Sacramento*                                      small employer (100 or less) $10.50
large employer (101 or more) $11.00
San Diego $11.50
San Francisco $14.00
San Jose* $13.50
San Leandro $13.00
San Mateo*                                                 For-profit organizations $13.50
Non-profit organizations $12.00
Santa Clara* $13.00
Santa Monica                                       small employer (25 or less) $10.50
large employer (26 or more) $12.00
Sunnyvale* $15.00
Los Angeles County                            small employer (25 or less)

unincorporated areas                            large employer (26 or more)

$10.50

$12.00

Colorado* $10.20
Connecticut $10.10
Delaware $8.25
Florida* $8.25
Georgia $7.25
Hawaii* $10.10
Idaho $7.25
Illinois — all cities/counties except … $8.25
Chicago $11.00
Cook County

(except for the Village of Barrington)

$10.00
Indiana $7.25
Iowa $7.25
Kansas $7.25
Kentucky $7.25
Louisiana $7.25
Maine* — all cities/counties except … $10.00
Portland $10.68
Maryland — all cities/counties except … $9.25
Montgomery County $11.50
Prince George’s County $11.50
Massachusetts $11.00
Michigan* $9.25
Minnesota* — all cities/counties except … “small employers” (employers with an annual sales volume of less than $500,000) $7.87
“large employers” (employers with an annual sales volume of $500,000+) $9.65
Minneapolis                                         large employer (101 or more) $10.00
Mississippi $7.25
Missouri $7.85
Montana* $8.30
Nebraska $9.00
Nevada $8.25
New Hampshire $7.25
New Jersey* $8.60
New Mexico — all cities/counties except … $7.50
Albuquerque*                                             employer provides benefits $7.95
employer does NOT provide benefits $8.95
Las Cruces* $9.45
Santa Fe $11.09
Bernalillo County*unincorporated areas                                             employer provides benefits $7.85
employer does NOT provide benefits $8.85
Santa Fe County unincorporated areas $11.09
New York**  “Upstate” employers (excluding fast food employees) $10.40
“Downstate” employers (excluding fast food employees) $11.00
“Small” NYC employers (excluding fast food employees $12.00
Fast food employees outside NYC $11.75
“Large” NYC employers (excluding fast food employees) $13.00
Fast food employees inside NYC $13.50
North Carolina $7.25
North Dakota $7.25
Ohio* $8.30
Oklahoma $7.25
Oregon — all cities/counties except … $10.25
Portland $11.25
Nonurban Counties 

(Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klmath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa Wheeler counties)

$10.00
Pennsylvania $7.25
Rhode Island* $10.10
South Carolina $7.25
South Dakota* $8.85
Tennessee $7.25
Texas $7.25
Utah $7.25
Vermont* $10.50
Virginia $7.25
Washington* — all cities/counties except … $11.50
City of SeaTac* (hospitality and transportation workers) $15.64
Seattle* $14.00
small employer who does not pay towards medical benefits

(500 or less)

small employer who does pay towards medical benefits

(500 or less)

$11.50
large employer who does not pay towards medical benefits

(501 or more)

$15.00
large employer who does pay towards medical benefits

(501 or more)

$15.45
Tacoma* $12.00
Washington DC $12.50
West Virginia $8.75
Wisconsin $7.25
Wyoming $7.25
 * = increase in minimum wage effective January 1, 2018

** = increase in minimum wage effective December 31, 2017

 

Caveat: Please be advised that this information is being provided as a courtesy and that ePlace Solutions, Inc. does not track local laws and ordinances and will not update this information with changes in local laws and ordinances.

 

 

Arizona Employers – Are You Prepared For The New Paid Sick Time Law?

On July 1, 2017, the paid sick time portion of the Arizona Fair Wages and Healthy Families Act (Proposition 206) goes into effect.

Under this law, all Arizona employers are required to provide employees with paid sick time as follows:

  • Employers with less than 15 employees (“Small Employers”): Employees are entitled to accrue 24 hours of earned paid sick time per year
  • Employers with 15 or more employees (“Large Employers”): Employees are entitled to accrue 40 hours of earned paid sick time per year.

Paid sick time may be provided to employees on an “up front” or “accrual” basis.

If an employer chooses to advance (“up front”) the earned sick leave, employers must makes the full amount of sick leave for the year (24 hours for small employers and 40 hours for large employers).

If employers choose to use the accrual method, then employees must accrue a minimum of one (1) hour of paid sick time for every thirty (40) hours worked up to a maximum of twenty-four (24) hours (small employers) or forty (40) hours (large employers) in a calendar year.

Regardless of the method used, employees must be allowed to “carry over” unused, accrued paid sick time as follows:

  • Small Employers: Employees are entitled to carry over 24 hours of accrued, unused paid sick time per year
  • Large Employers: Employees are entitled to carry over 40 hours of accrued, unused paid sick time per year.

The carry over of unused, accrued paid sick time does not prevent the employee from accruing the full annual accrual in the following year; however, employers are still only required to allow an employee to use 24 hours (small employers) or 40 hours (large employers) of paid sick time per year.

Alternatively, in lieu of carry over, an employer may elect to pay an employee for unused earned paid sick time.

An employee becomes eligible to use paid sick time when he/she has on the 90th calendar day after his/her first day of employment. At that point, the employee is eligible to use any available paid sick time in his/her bank

An employee may use his/her accrued paid sick time for the following purposes:

  • An employee’s mental or physical illness, injury or health condition; an employee’s need for medical diagnosis, care, or treatment of a mental or physical illness, injury or health condition; an employee’s need for preventive medical care;
  • Care of a family member with a mental or physical illness, injury or health condition; care of a family member who needs medical diagnosis, care, or treatment of a mental or physical illness, injury or health condition; care of a family member who needs preventive medical care;
  • Closure of the employee’s place of business by order of a public official due to a public health emergency or an employee’s need to care for a child whose school or place of care has been closed by order of a public official due to a public health emergency, or care for oneself or a family member when it has been determined by the health authorities having jurisdiction or by a health care provider that the employee’s or family member’s presence in the community may jeopardize the health of others because of his or her exposure to a communicable disease, whether or not the employee or family member has actually contracted the communicable disease; or
  • Absence necessary due to domestic violence, sexual violence, abuse or stalking, provided the leave is to allow the employee to obtain for the employee or the employee’s family member:
    • Medical attention needed to recover from physical or psychological injury or disability caused by domestic violence, sexual violence, abuse or stalking;
    • Services from a domestic violence or sexual violence program or victim services organization;
    • Psychological or other counseling;
    • Relocation or taking steps to secure an existing home due to the domestic violence, sexual violence, abuse or stalking; or
    • Legal services, including but not limited to preparing for or participating in any civil or criminal legal proceeding related to or resulting from the domestic violence, sexual violence, abuse or stalking.

The Arizona Earned Paid Sick Time Poster must be displayed where employees can easily read it. The poster is available in both English and Spanish.

Take Home For Employers

The Industrial Commission of Arizona has published Frequently Asked Questions (FAQs) About Minimum Wage and Earned Paid Sick Time to help employers understand this new law. It is recommended that all Arizona review these FAQs.

The Fate of Arizona’s Proposition 206 Has Been Decided

In its March 14, 2017 order, the Arizona Supreme Court unanimously ruled to uphold Proposition 206, the November 2016 ballot initiative that increases the Arizona minimum wage and requires employers in the state to offer paid sick leave to employees.

The constitutionality of the ballot measure was challenged by a group of business organizations in December 2016 on two separate grounds.

These groups argued that the ballot measure violated the “Separate Amendment Rule,” which mandates that any proposed amendment to the Arizona constitution be limited to related matters of substance. The groups claimed that Proposition 206 was unconstitutional because it addressed the two distinctly unrelated subjects of minimum wage and paid sick leave.

The groups also argued that the ballot measure would create new costs to the state because even though the minimum wage requirements do not apply to state employers, private vendors to the state were subject to the new minimum wage requirements, which would, in turn, increase costs to the state. Such increased costs without providing a new revenue source are also unconstitutional.

The Arizona Supreme Court was not swayed by either of these arguments and instead upheld Proposition 206.

Impact on Arizona employers

In December of 2016, these same business groups requested the court delay the implementation of the new minimum wage until this lawsuit was resolved. That request was denied later that month and the new minimum wage went into effect on January 1, 2017. As a result, all Arizona employers should be in compliance with the new minimum wage.

The greater impact is the new paid sick leave law. Some Arizona employers may have delaying developing a paid sick leave policy until this lawsuit was resolved. With the Arizona Supreme Court’s ruling, the Arizona paid sick leave law will be going into effect on July 1, 2017. Therefore, all Arizona employers should take steps to ensure they are prepared for the new paid sick leave law.

Finally, the Industrial Commission of Arizona has issued a series of Frequently Asked Questions (“FAQs”) regarding Prop 206’s requirements. It is recommended that all Arizona employers review these FAQs.

Arizona Employers – Coming July 1, 2017 To A Workplace Near You – Paid Sick Leave

In addition to increasing Arizona’s minimum wage starting January 1, 2017 (see 2016 Election Aftermath – Minimum wage to increase in Arizona, Colorado, Maine, and Washington), the passage of Proposition 206 also brings paid sick leave to Arizona employers.

Starting July 1, 2017, all Arizona employers will be required to start providing employees with paid sick leave. With the passage of Proposition 206, Arizona joins Oregon, California, Washington, Massachusetts, Vermont, and Connecticut as states that provide paid sick leave to employees. (Washington DC and numerous cities in the US also require employers to provide paid sick leave benefits).

Who is covered by the Arizona Paid Sick Leave Law?

Virtually all Arizona employers will be required to provide employees with paid sick leave. However, the amount of paid sick leave that must be provided depends on the number of employees the employer employs.

The only employers who are exempt from the new paid sick leave requirements are qualifying “small businesses.” To qualify as a “small business,” a business must have gross annual revenues of less than $500,000 and not be engaged in interstate commerce or in the production of goods for interstate commerce.

How much paid sick leave must be provided?

Starting July 1, 2017, employees of Arizona employers will start accruing paid sick leave. Paid sick leave benefits will accrue at a rate of 1 hour for every 30 hours worked by the employee. For new employees, accrual begins on the first day of employment.

For employees of large employers (15 or more employees), employers must provide at least 40 hours of paid sick leave per year; while small employers (less than 15 employees) are only required to provide at least 24 hours of paid sick leave per year.

When are employees eligible to use paid sick leave?

The new sick leave law imposes a 90-calendar day waiting period before a newly hired employee can use paid sick leave benefits. This means that for employees who have been employed by the employer for more than 90 days as of July 1, 2017, those employees will be eligible to use their paid sick leave benefits as those benefits are accrued.

What can paid sick leave be used for?

Under the new law, an employee will be able to use his/her paid sick leave benefits for the following purposes:

  • an employee’s illness, injury, or health condition, including diagnosis, treatment, care, and preventive care;
  • to care for a family member’s illness, injury, or health condition, including diagnosis, treatment, care, and preventive care;
  • when an employee’s place of business or an employee’s child’s school or place of care is closed by a public health official for any health-related reason; or,
  • for employee absences for qualified leave under the domestic violence leave act.

What are the employee’s notice requirements before using paid sick leave?

An employer may require employees to give reasonable notice of an absence from work, so long for an unforeseeable absence, the employer provides employees with a written policy that contains the procedures an employee must follow to provide notice of his/her need for paid sick leave. In addition, for absences exceeding three days, an employer may require verification that an employee’s use of paid sick leave is for an authorized purpose. If an employer requires verification, verification must be provided to the employer within a reasonable time period during or after the leave.

What are the employer’s notice requirements relating to paid sick leave?

An employer must give employees written notice of their right to paid sick leave. This notice must be provided by July 1, 2017 (to those employees hired before July 1 2017) or at the commencement of employment (for those employees hired on or after July 1, 2017). The Industrial Commission of Arizona is required to develop a model notice before the law goes into effect.

What should Arizona employers do to prepare for the new law?

Arizona’s new Paid Sick Leave Law goes into effect on July 1, 2017. Before that time, the Industrial Commission of Arizona is required to develop regulations regarding the new paid sick leave law. In order to prepare for this new law, employers should prepare paid sick leave policies and plan to include those policies in their 2017 Employee Handbook. In addition, employers with existing sick leave or PTO policies should check their policies to verify that they are compliant with this new law. We will keep you posted about this law as it draws closer to the effective date.

2016 Election Aftermath – Minimum wage to increase in Arizona, Colorado, Maine, and Washington

Following the 2016 election, voters in Arizona, Colorado, Maine, and Washington approved ballot measures to increase minimum wage in these states starting January 1, 2017.

Minimum wage will increase in these four states in accordance with the following schedule:

Arizona

  • January 1, 2017 — $10.00
  • January 1, 2018 — $10.50
  • January 1, 2019 — $11.00
  • January 1, 2020 — $12.00
  • January 1, 2021 – minimum wage will adjust for inflation

Colorado

  • January 1, 2017 — $9.30
  • January 1, 2018 — $10.20
  • January 1, 2019 — $11.10
  • January 1, 2020 — $12.00
  • January 1, 2021 – minimum wage will adjust for inflation

Maine

  • January 1, 2017 — $9.00
  • January 1, 2018 — $10.00
  • January 1, 2019 — $11.00
  • January 1, 2020 — $12.00
  • January 1, 2021 – minimum wage will adjust for inflation

Washington

  • January 1, 2017 — $11.00
  • January 1, 2018 — $11.50
  • January 1, 2019 — $12.00
  • January 1, 2020 — $13.50
  • January 1, 2021 – minimum wage will adjust for inflation

It is recommended that employers in these states prepare for these minimum wage increases.

Is your state contemplating the legalization of marijuana?

Presidential election aside, there is something else equally important to employers on certain electoral ballots. Eight states are contemplating legalizing marijuana either for medicinal purposes or for recreational purposes. Is your state one of the eight who are contemplating this change?

Medical Marijuana Laws

Currently 25 states and DC have laws legalizing the use of marijuana for medicinal purposes. On November 2, 2016, 3 more states will be subjecting their proposed medical marijuana laws to popular vote. Those states are: Arkansas, Florida, and North Dakota.

Should these laws pass, here is how they could impact employers:

  • Arkansas
    • Employers cannot deny a “qualifying patient” “any right or privilege, including but not limited to a civil penalty or disciplinary action by a business or occupational or professional licensing board or bureau, for medical use of cannabis in accordance with [the law].”
    • Employers cannot discriminate against a “qualifying patient” “in hiring, termination, or any term or condition of employment, or otherwise penalize an individual, based upon the individual’s past or present status as a Qualifying Patient.”
    • Employers will not be required to
      • accommodate the use of marijuana in the workplace
      • permit an employee to work while under the influence of marijuana.
  • Florida
    • Employers will not be required to permit the use of marijuana in the workplace
  • North Dakota
    • Employers will not be required to permit the use of marijuana in the workplace

Recreational Marijuana

In addition, four states and the District of Columbia have legalized marijuana for recreational use. On November 2, 2016, 5 more states will be subjecting their proposed medical marijuana laws to popular vote. Those states are: Arizona, California, Maine, Massachusetts, and Nevada.

Should these laws pass, here is how they could impact employers:

  • Arizona
    • Employers will not be required to
      • Allow or accommodate the possession or use of marijuana in the workplace
      • Permit an employee to work while under the influence of marijuana.
    • Employers may still enact policies restricting the use of marijuana by employees
    • However, an employer cannot discipline an employee for an action solely because the employee tests positive for marijuana in a drug test
  • California
    • Employers will not be required to
      • Allow or accommodate the possession or use of marijuana in the workplace
      • Permit an employee to work while under the influence of marijuana.
    • Employers may still enact policies restricting the use of marijuana by employees and drug free workplace policies
  • Maine
    • Employers will not be required to
      • Allow or accommodate the possession or use of marijuana in the workplace
      • Permit an employee to work while under the influence of marijuana.
    • Employers may still enact policies restricting the use of marijuana by employees
    • However, employers cannot refuse to hire someone solely because that person used marijuana
  • Massachusetts
    • Employers will not be required to
      • Allow or accommodate the possession or use of marijuana in the workplace
      • Permit an employee to work while under the influence of marijuana.
    • Employers may still enact policies restricting the use of marijuana by employees
  • Nevada
    • Employers will not be required to
      • Allow or accommodate the possession or use of marijuana in the workplace
      • Permit an employee to work while under the influence of marijuana.
    • Employers may still enact policies restricting the use of marijuana by employees

Employers in these states should watch the election results carefully and be prepared to make some alterations to their drug policies to ensure they are compliant with any new laws that might be passed.

No Change to Arizona Minimum Wage For 2016

The Industrial Commission of Arizona recently announced that Arizona’s minimum wage (currently $8.05 per hour) will NOT increase for 2016.

Despite the fact that Arizona’s minimum wage is unchanged for 2016, the Industrial Commission of Arizona has issued a new minimum wage poster for 2016, which employers must post in a conspicuous place in the workplace starting January 1, 2016.

The minimum wage poster for 2016 is available here.

Arizona Minimum Wage Increases January 1, 2015

The Industrial Commission of Arizona announced on October 16, 2014, that the state’s minimum will increase in 2015.  Beginning January 1, 2015, the new minimum wage will be:

  •  $8.05/hour for non-tipped employees, and
  •  $5.05/hour in direct wages for tipped employees

A tipped employee is defined as “an employee who customarily and regularly receives tips, including the occupation of waiter, waitress, bellhop, busboy, car wash attendant, hairdresser, barber, valet, and service bartender.” The employee must receive the tip free of any control by the employer.