July 1st is just a few months away…. Small business owners need to get prepared for Arizona’s new Paid Sick Leave requirements. When Arizona voters approved Proposition 206 in November the minimum wage was increased to $10 an hour. But, few realized that the more alarming increase in our wage expense was the addition of a mandated Paid Sick Leave. This is one of the biggest changes to Arizona employment law in recent history.
As of July 1st, employers must provide paid sick leave to all employees regardless of the size of business. As our chamber has spread the word throughout the region, many business owners ask us about a small business exemption. Simply – there are no exemptions for size or geography. The new requirements applies to all businesses in Arizona.
It’s time to pull out your employment manual and review your paid time off policies to ensure that they comply. Here are a few of the important points. Be sure to seek advice from your payroll professional or bookkeeper.
1. Employees must accrue a minimum of one hour of paid sick leave per 30 hours worked.
4. Employees are required to make a good faith effort to provide notice to the employer in advance of the leave and make a reasonable effort to schedule the time off that does not unduly disrupt the operations of the employer.
5. Unused sick leave carries over one year to the next, but does not need to be paid to employees upon separation of employment.
For many small businesses who are caught unaware, this will create a hardship. Our Tucson Hispanic Chamber continues to offer business consulting and business education classes throughout the region to assist businesses in analyzing the impact. Raising your product or service prices (if you can) or restructuring your business may be necessary. It’s time to contact your employment law attorney or payroll company for details of how the mandated Paid Sick Leave requirement will impact your business.
Lea Marquez Peterson, MBA
Tucson Hispanic Chamber and our affiliate chambers in Sierra Vista, Ambos Nogales and Douglas
Welcome to the Tucson Hispanic Chamber Blog Page.
Our goal is to help member companies grow and prosper. We work to achieve this goal by advocating a pro-business agenda in Tucson and connecting members with business leaders and policy makers. How? With Networking & educational events, and online initiatives — like this blog.