Effective 7/1/2017, any employer with more than 15 employees working in the state of Arizona must provide paid sick leave to those employees under the Arizona Fair Wages and Healthy Families Act.
*Note- If you do not have employees working in the state of Arizona you may disregard.
Items to know about the Act
- The Act requires that employees accrue a minimum of one hour of paid sick time for every 30 hours worked, but may not accrue or use more than 40 per year, unless you as the staffing company select a higher limit. Employees may carry over up to 24 hours from year to the next.
- A year is defined as a consecutive 12 month period as determined by the employer. It can be calendar year, fiscal year or an employee's hire date.
- There is no probationary period for sick time accrual. Accrual begins immediately upon hire, however you may require employees hired at 7/1/2017 to wait 90 days before they can use the earned paid sick time.
- Employers must provide written notice of the employee's rights under the Act; prior to 7/1/2017 for existing employees and at the beginning of employment for those hired at 7/1/2017.
- An employer must provide to the employee either on their paycheck stub or as an attachment, the amount of sick time earned, the amount of sick time taken year to date and total earned/ available.
How to handle the Act in Enterprise
Enterprise has the capability to calculate location specific accruals, as well as setup a waiting period prior to the sick time being eligible to use. Not sure how to setup location specific accruals, follow the link Location Specific Vacation and Sick Time Setup
You may utilize HRCenter to include a document in your application or on-boarding step that includes information required for employee notification.
*Note- Please work with a TempWorks representative to assist in adding required information onto your companies check stub.
Navigate to administration (1.) accruals (2.) select the "+" icon (3.)to setup your AZ Sick pay accrual package:
Name: A title for the accrual. This name will appear in a corresponding dropdown on the accruals page of the employee record.
Description: A space allotted for any additional details regarding the accrual.
Type: The base by which the accrual is earned. Hourly= Earned per hour or Pay Period= Earned per pay period
Hier: Where the accrual will exist in your database hierarchy.
Select the location accrual rollover type - ( Annual = January 1; Anniversary= Start date of First Assignment)
Allow Neg Balance- Allow accrual balance to go negative.
Annual Depletion Limit - The total hours they can use in a Year
Eligible Balance Delay days- # of Days delayed, after meeting eligible Data offset, before using it
Accrue on OT/ DT- Determine whether it will accrue on OT/ and or DT
Pay Codes (Earn): When this pay code is used on transactions in time entry accruals will be earned (if setup on the employee record). Choose all paycodes that will earn this accrual.
Pay Codes (Use): When this pay code is used on transactions in time entry accrued time will be depleted. Choose the paycode that you will use for this accrual.
Accrual Tiers: Allows users to setup multiple rules that exist for an accrual.
(1.) Accrual Rate- Set the rate of the accrual ( Accrual hours earned per hour worked)
(2.) Depletion Rate - The minimum of amount of hours they have to use at a time
(3.) Period Max accrue- The most they can accrue in a period ( per check)
(4.) Annual Max Accrue- The most they can accrue in a Year ( until January 1)
(5.) Period Max Balance- The most they can have (total) in a period (usually a week)
(6.) Annual Max Balance- The most they can have in a Year (until January 1)
(7.) Anniversary Max Balance- The most they can have in a Year ( on their anniversary)
In the below example an employee earns right away ( eligible date offset) but cannot use it until 90 days of being an employee. They are earning at a rate of .033 hours earned on every hour when the paycode of Reg is used in 1 hour increments. They can earn 40 hours, can only use 40 hours and can carry over 40 hours in a Year based on Annual Date (January 1).
Arizona Sick Pay Summary
1.Rate: 1 Hour earned for every 30 Hours worked
- If 15 or more employees then max is 40 hours / year
- If less than 15 employees then max is 24 hours / year
2.Rollover: Can carry over the max after 12/31
3.Accrual start date: They begin accruing on the first day of employment or 7.1.17, whichever is later. That means there is no delay before accruing begins.
4.Delay to Use:
- If hired before 7/1/17, they can use earned time as soon as it is accrued. Ex. if they earn 1.33 hours the first week of July, they can use those 1.33 hours right away. No delay before use.
- If hired after 7/1/17, they have a 90 day delay before they can use accrued time.
5.If re-hired (same company) in 9 months
- All amounts are still available
- Can use the Accrual right away
Paychecks must show
- Amount Earned
- Amount Taken
- Total Earned/Available
6. Other: If accrual is at or better than AZ Sick Pay then Employer doesn’t have to use this
If you have any questions please visit https://www.azica.gov/frequently-asked-questions-about-wage-and-earned-paid-sick-time-laws