Arizona Employment Law Update – August 2016

Minimum Wage Increase and Paid Sick Leave Ballot Initiative

Arizona voters will be asked to decide on minimum wage increases and paid sick leave in the November 8, 2016 General Election. If approved, Proposition 206, The Fair Wages and Healthy Families Act Initiative, would:

  • Increase the minimum wage to $10 per hour in 2017 then gradually to $12 per hour by 2020.
  • Provide 40 hours of earned paid sick time per year to employees of large employers (24 hours for employees of small employers).

Scheduled increases to the minimum wage would be as follows:

  • Effective January 1, 2017, $10 per hour.
  • Effective January 1, 2018, $10.50 per hour.
  • Effective January 1, 2019, $11 per hour.
  • Effective January 1, 2020, $12 per hour.
  • Effective January 1, 2021, annual increases will be based on increases in the cost of living.

For earned paid sick time, employees of an employer with 15 or more employees (large employers) would accrue a minimum of one hour of earned paid sick time for every 30 hours worked, but not more than 40 hours of earned paid sick time may be accrued or used each year unless the employer selects a higher limit. Employees of employers with fewer than 15 employees (small employers) would accrue one hour of paid sick time for every 30 hours worked, but use of sick time will be limited to 24 hours per year unless the employer selects a higher limit.

Read Proposition #206