Arizona's Prop 206 Sick Leave Laws Effective July 1 — Are You Ready?

Joseph Patterson | June 29, 2017
TSheets recently conducted a study of Arizonans to find out how much they knew about Proposition 206, part of which will change sick leave policies for employers across the state. We found that 4 in 10 people surveyed said they didn’t know the changes were coming. But beginning July 1, 2017, employers will be required to pay eligible employees paid sick leave accrued up to an amount based on the size of the company (aka its number of employees). It’s an important step for the state — Prop 206 also increases Arizona’s minimum wage requirements — as many states across the nation are creating similar mandates. But businesses should be acutely aware of their obligations under the new law. There could be penalties for businesses who fail to comply.  

Get more information on time tracking, including tracking and calculating your employees’ sick days and other paid time off here.

Need help now? Call us at 888.836.2720.

Employers, take note

Proposition 206 mandates that employers offer their employees accrued paid sick leave, effective July 1, 2017. Not all businesses will be required to offer the same amount of leave, though. The amount of sick leave an employee may accrue is based on the size of the employer.* Depending on the number of employees a business has, there will be a minimum requirement of paid sick leave they’re required to pay their team. If your business has more than 15 employees, you’re required to allow them to accrue 40 hours of sick leave per year. If you have less than 15 employees, that minimum is 24 hours. The rate of that accrual is one hour per 30 hours of time worked, and it includes exempt and nonexempt employees (salaried employees are classified as employees who work 40 hours per week). Additionally, under the new law, employers:
  • Must give employees notice of their right to paid time off.
  • Must post a notice about employees’ rights and keep detailed records of the business's policies for the team to access.
  • Must include updated information about employee’s available sick leave on their paycheck.
  • May require employees to provide documentation of their situation after three consecutive days of work missed for medical reasons.
  • Must understand that paid sick leave cannot be used as a reason for disciplinary action.

What to do now

When new laws are rolled out, it’s always important to make sure that your business is in an affected area. Check with your local government to ensure that the laws apply to you. In addition, consult your accountant and lawyer to find out which employees will accrue the sick leave and how to proceed if you have employees in different areas. Review your current policies to ensure you have your records in order and changes have been made wherever necessary. Then carefully track your employee’s time and sick time with TSheets for the most accurate compliance. TSheets’ sick leave function automatically tracks and organizes those hours for you to make payroll simple and painless.  

Need help setting up your TSheets account to track sick leave? Call us at 888.836.2720.


What Prop 206 means for employees

A previous survey by TSheets found that 85 percent of respondents say sick leave is important. Sick leave covers more than just the days you miss work with a cold or the flu.
  • You can use the paid sick leave in hourly increments.
  • You can use it to take care of your family members.
  • You can use it to recover from or take preventative measures against domestic violence, sexual violence, or stalking.
  • In some cases, unused hours carry over into the next year, while some employers can choose to pay employees for unused time instead.

Not in Arizona? See new sick leave Ordinance changes in Chicago and Cook County, Minneapolis and St. Paul, and Georgia.

New to time tracking? TSheets tracks employee hours, sick leave, PTO, and more!

*As always, TSheets does not offer legal or accounting advice for your business. Check with your lawyer and accountant before making policy changes at your company.
A little about Joseph Patterson

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