The Industrial Commission of Arizona (“ICA”) has issued a Notice of Supplemental Proposed Rulemaking ("Notice") for Proposition 206, otherwise known as the Fair Wages and Healthy Families Act (the “Act”), available here. The Act, requiring certain employers to provide a minimum amount of paid sick time to Arizona employees, takes effect July 1, 2017.
The Notice outlines the ICA’s proposed regulations, and supplements the ICA’s previous proposed rules published on May 5, 2017. See 23 A.A.R. 1019. Important changes to note:
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The proposed regulations provide clarification for employers wishing to use paid time off policies to meet their obligations under the Act.
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The proposed regulations provide direction regarding an employer’s paid sick time tracking requirements, including definitions for “employee’s regular paycheck” and “employee’s earned paid sick time balance.”
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The proposed regulations provide guidance surrounding proration and year-end carry over when an employer chooses to “front load” an employee’s paid sick time hours.
The ICA has indicated updated FAQs will be released shortly. Nonetheless, Arizona employers should still ensure their policies are compliant in time for the Act’s effective date of July 1.
