As we pioneer through  the new year it can be difficult to focus on legal compliance while you’re being consumed with day-to-day operations. You need a quick checklist of items that you need to be monitoring in 2023.

That’s why we’ve created our list of top 10 things AZ business owners need to know heading off 2023.

Now you can focus on your 2023 success while we go through a few employment law compliance items that you should be looking at in 2023.

1. Arizona Minimum Wage

Arizona’s minimum wage is set to increase every year. In 2023, the minimum wage in Arizona is $13.85/hour. Because an increase happens every year, it is important to continually review your pay policies for minimum wage workers, this ensures  you’re compliant.

2. Unemployment Insurance Rates

Each year the state unemployment insurance rate changes. Due to the high-volume usage of unemployment insurance in the last three years, these rates have seen dramatic increases. It is important to notify your payroll provider immediately when you get the notice of a new unemployment insurance rate so that they can properly calculate any necessary withholding.

3. Rollover Paid Sick Leave

Depending on your paid sick leave and paid time off policies (typically outlined in your employee handbook), you need to be mindful of the need to roll over any accrued and unused paid sick leave in Arizona.

4. Employment Law Posters

Each year, several state and federal agencies require that you post appropriate notices in a visible area at your place of work with various notices. With so many people working remotely, there are different things that you are required to do to ensure that these notices are available to everyone.

5. Overtime Pay Policies

The Department of Labor is going to issue new potential rules this year for minimum wage and overtime. Even if they do not go into effect this year, it is important to review exempt vs. non-exempt classifications being used in your workplace to ensure that they are accurate. In addition, reviewing those workers classified as 1099 employees (not W-2 employees) is critical to limiting employment liability.

6. Anti-Harassment and Anti-Discrimination Policies

In 2021, the US Supreme Court ruled that LGBTQ status is covered under anti-discrimination laws. If employment policies or handbooks have not been updated by now, and if training has not been provided to HR employees or managers, that should be done as soon as possible.

7. Non-Compete Agreements

President Biden requested the FTC to issue rules outlawing the use of non-compete agreements nationwide. This will need to go through the formal “rulemaking” process which takes time. It is important in the meantime to look at other ways that you can protect your valuable business interests through non-solicitation, non-circumvention, and non-disclosure terms.

8. State and Employment Law Thresholds

Many state and federal employment laws have a threshold number of employees before they apply. For example, many employers who grow beyond 15 employees forget the Americans with Disability Act.

9. Tax Withholding Rates

The Arizona State Tax Withholding Form (A-4) has been updated to include lower individual income tax rates. Arizona employers are required to present new forms to their employees. These updated forms are available on the AZ Department of Revenue website.

10. Legal Advice

Laws change daily. Staying up to date with these changes is critical.   Our On-Call program, provides priority legal advice from our team, through legal check-in meetings, to alleviate your legal risk, With up-to one 15 minute session per day depending on your plan, each package ensures predictability of costs through proactive legal services, contract reviews, and strategic advice sessions. This leaves you free to focus on what truly matters – successfully operating and expanding your business.

Contact Counxel Legal Firm

If you have questions about employment law updates or other general business inquiries, then give the Counxel Legal Firm team a call at 480-536-6122 or email us at request@counxel.com.

This article is intended for informational purposes only and does not constitute legal advice for your specific situation. Use of and access to this article does not create an attorney-client relationship between you and Timothy Coons or Counxel Legal Firm. Please contact request@counxel.com or 480-536-6122 to request specific information for your situation.