The 2nd Shoe Has Dropped! by Jack W. Lunsford, Arizona Small Business Association
On November 8, 2016, Arizona voters approved Proposition 206, The Fair Wages
The Mission of the Arizona Small Business Association is to foster and empower a thriving Arizona small business community by offering relevant, dynamic, and innovative resources and the highest level of advocacy as THE VOICE of small business in Arizona. ASBA fosters and empowers a thriving small business community by: • bringing relevant and dynamic education and mentoring opportunities • providing innovative and relevant tools business owners can utilize to grow and sustain their business • creating a variety of relevant and dynamic opportunities for members to meet potential clients • working diligently to advocate for legislation and regulation supporting a pro-business environment.
and Healthy Families Act. So, on January 1,
Take note: Ignorance of this law will be
• Employers shall not use qualifying EPSL
Join ASBA. Be amAZed®
no excuse, yet the rules promulgated by the
absences in disciplining employees for
Arizona Industrial Commission clarifying the
In This Issue
2 4 5 6 7
Before You Budget,
2016, the minimum wage for non-tipped workers increased to $10/hour, and nearly all employers know that. However, effective July 1st, the 2nd shoe from Prop. 206 dropped. Every business with
• Retaliation against employees who
employees with Mandatory Earned Paid Sick
request or use EPSL is prohibited.
Leave (EPSL). Guess what? Most Arizona businesses don’t know that, and Arizona has 540,000 onerous and time consuming. The costs of
EPSL available to the employee,
non-compliance could put businesses at
EPSL taken by the employee to date,
Paid time the employee has received
significant financial risk. The penalties for non-compliance are costly, including legal costs fighting employee complaints.
law and providing guidance to businesses won’t even be approved until early January 2018. The good news: If businesses get into
assist all businesses to become compliant.
for Retirement Can Be Tricky, But
ASBA is presenting Prop. 206 workshops
It Doesn’t Have to Be
and soon will be offering them in Tucson and
Benefits of Having a
rural Arizona. ASBA will also be offering its
members email updates and website posts.
exposure, and ASBA is leading the way to
ASBA’s immediate advice is: 1) Adopt a personnel manual, and have the employees sign a receipt of acknowledgement. 2)
Why the 4th Quarter
Document, document, document! 3) Consider
separating EPSL from your PTO benefit plan.
4600 E. Washington St., Suite 340 Phoenix, AZ 85034 p. 602.306.4000
Southern Arizona 3444 N. Country Club Rd. Suite 118 Tucson, AZ 85716 p. 520.327.0222 © 2017 ASBA. A publication of the Arizona Small Business Association. For more information or to join ASBA, please contact us at www.asba.com. Section designed by the Arizona Small Business Association.
complaint if EPSL is denied. • EPSL information must appear on paychecks:
Encouraging Employees to Save
• Each employee has the right to file a
small businesses! The record keeping is
compliance quickly, they can reduce their loss
Midst of Stress
every 30 hours worked to the maximum.
one or more employees must now provide all
Evaluate Your Expectations
Finding Joy in the
• Employees accrue 1 hour sick time for
Meanwhile, ASBA has already learned that
and as EPSL.
• Employer is prohibited from retaliating against an employee for use of EPSL. • Employers are not required to pay out unused EPSL upon termination.
Employees may use EPSL for the following reasons: • Employee’s own physical or mental illness, injury or health conditions; • Care for employee’s family member for one of the above conditions; • A public health emergency; or • Absence due to domestic violence, sexual violence, or stalking of employee or of an employee’s family member.
Employee Requirements • Employees are required to make a
there are unique EPSL situations for almost
good faith effort to provide notice to an
every business, and our workshops attempt
employer, as described in the employee
to provide answers to as many as possible.
handbook, in advance of taking EPSL.
However, there are certain specific, uniform
• Employees may file a complaint to the
provisions in the law effective now.
Employer Requirements: • Employees are entitled to EPSL. • Part-time and temporary workers are considered “employees”.
Arizona Industrial Commission or directly to Superior Court. ASBA is here to bring businesses into compliance before they suffer financial losses. Contact us at asba.com or 602-306-4000.
Published on Sep 29, 2017