Time off rules are changing in Arizona under the second part of Proposition 206 which was passed by voters in November.
The first part raised minimum wage state wide back in January from $8.05 to $10.
Employers across the state are gearing up for the second part of prop 206 taking effect on July 1st.
Whether you're a small or large company in the state there are no exceptions to the rule.
All employees whether full or part time must be paid sick leave time.
Timothy Medcoff, attorney with Farhang & Medcoff says companies that already offer PTO will have to make sure their policy complies with the new requirements.
Accruals for employers with 15 employees or less is capped off at 24 hours a year.
For employers with more than 15 employees, it's 40 hours a year.
Earned PTO can be used at an employees discretion whether the employee works part time, full time, seasonal or temporary.
- Being sick
- Care for sick family members
- Public health emergency
- Absence due to domestic violence, sexual violence, or stalking of employee or employee's family member.
The question Medcoff has run into is "How can employers know if their employees are telling the truth?"
Medcoff says, "It's difficult."
"The statute says you can't ask for back up documentation unless they're out sick for 3 or more days so as an employer you need to make sure that you can investigate dishonesty or abuse of time but you can't do it in such a way that might be consider retaliation," says Medcoff.
Employees will start accruing PTO immediately.
However, businesses can have a 90-day probationary period for new employees but it's risky.
"If someone is terminated within 90 days of using time off then you have to overcome that presumption on a higher burden of proof," says Medcoff.
If an employee has unused PTO, businesses have two options they can either cash out the employee or roll over the time to next year.
Prop 206 goes into effect July 1st.