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Arizona Paid Sick Leave Policy

Arizona Paid Sick Leave Policy

Arizona employers and employees alike need to understand the Arizona Paid Sick Leave Policy to ensure compliance with state law. Whether you’re running a business or working for one, knowing your rights and responsibilities regarding paid sick leave can help avoid legal complications and foster a fair workplace.

Understanding Arizona’s Paid Sick Leave Law

In 2017, Arizona passed the Fair Wages and Healthy Families Act, which mandates paid sick leave for employees in both small and large businesses. The policy aims to provide workers with the time they need to address personal or family health issues without fear of losing income.

Who Is Covered?

  • All full-time, part-time, and temporary employees.
  • Applies to businesses of all sizes, with different accrual rates depending on the number of employees.
  • Independent contractors are not covered under this law.

Accrual and Usage

  • Employees earn 1 hour of paid sick leave for every 30 hours worked.
  • Small businesses (fewer than 15 employees) must allow up to 24 hours of paid sick leave per year.
  • Larger businesses (15 or more employees) must allow up to 40 hours of paid sick leave per year.
  • Employees can use their accrued sick leave for:
    • Personal illness or medical care.
    • Caring for a sick family member.
    • Absences related to domestic violence, sexual assault, or stalking.
    • Public health emergencies.

Employer Responsibilities

Arizona law requires businesses to comply with the Paid Sick Leave Policy by:

  • Tracking and recording employee sick leave accrual and usage.
  • Providing employees with regular updates on their available sick leave balance.
  • Allowing employees to use sick leave without retaliation.
  • Including sick leave policies in employee handbooks or official workplace policies.

Failure to comply can lead to penalties, legal action, and even claims of a Breach of Fiduciary Duty, particularly if business owners neglect their obligations to employees under the law.

Employee Rights and Appeals

Employees have the right to file complaints if their employer:

  • Denies them access to accrued sick leave.
  • Retaliates against them for using their sick leave.
  • Fails to track or properly report sick leave balances.

If a dispute arises, employees can file an appeal with the Arizona Industrial Commission. The commission investigates claims, and employers found in violation may be required to compensate employees for lost wages and may face fines.

Best Practices for Businesses

To ensure compliance and a healthy work environment, businesses should:

Use Letters of Intent (LOI): If acquiring or merging with another business, ensure that the LOI outlines compliance with Arizona’s paid sick leave laws to avoid future legal issues.

Create clear policies: Outline sick leave procedures in the company handbook.

Educate employees: Inform staff about their rights and responsibilities.

Keep records: Maintain accurate logs of sick leave accrual and usage.

Prepare for audits: Have documentation ready in case of an investigation or appeal.

Conclusion

Understanding and implementing the Arizona Paid Sick Leave Policy isn’t just about legal compliance—it’s about fostering a fair, productive, and healthy work environment. Employers who follow the rules avoid unnecessary legal battles, while employees can rest easy knowing their rights are protected. By staying informed and proactive, Arizona businesses and workers alike can navigate this policy smoothly and effectively.

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