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Understanding Paid Sick Time in Arizona: A Comprehensive Guide

In Arizona, paid sick time is more than just a workplace benefit—it's a legal entitlement designed to protect employees when needed. 

Established under the Fair Wages and Healthy Families Act, this law has significant implications for both employees and employers across the state. Whether you’re trying to figure out your rights or ensure compliance as an employer, understanding the ins and outs of this law is crucial.

This blog post will provide a comprehensive overview of paid sick time in Arizona. We'll cover how the law works, who qualifies, how much time can be earned, how it can be used, and the legal protections in place.

TABLE OF CONTENTS

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What is paid sick time?

According to the Arizona law, this time can be used for a variety of reasons, such as the following:

  • Medical care or mental or physical illness, injury, or health condition of the employee or any of the employee’s family members.

  • A public health emergency affecting the employee or an employee’s family member.

  • An absence due to domestic violence, sexual violence, abuse, or stalking involving the employee or any of the employee’s family members.

The Industrial Commission of Arizona defines it as “the leave time that is compensated at the same hourly rate (but no less than minimum wage) and with the same benefits, including health care benefits, that an employee would have received for the work hours during which earned paid sick time is used.”

It is important to note that the earned paid sick time shall be provided upon the request of an employee. Such a request may be made orally, in writing, by electronic means, or by any other means acceptable to the employer. And, when possible, the request shall include the expected duration of the absence.

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Who qualifies for paid sick time in Arizona?

Almost all full-time and part-time employees are eligible for paid sick leave under the Fair Wages and Healthy Families Act. However, independent contractors do not qualify for this benefit, although a worker may want to look into whether they are properly classified as an independent contractor or if they’re actually an employee entitled to more protections.

The law applies to both public and private sector employees, ensuring that a broad range of workers have access to this benefit.

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Paid Sick Time vs. Sick Leave: Key Differences

In Arizona, "paid sick time" and "sick leave" often refer to the same concept but are two different types of protections for employees. Here are the key differences and details regarding Arizona's paid sick time law versus leave:

1. Legal Mandate and Coverage

Paid Sick Time: In Arizona, paid sick time is legally mandated by the Fair Wages and Healthy Families Act, meaning all qualifying employees are entitled to accrue and use paid sick time under state law.

Sick Leave: Sick leave, on the other hand, may not be legally mandated and is typically determined by the employer’s internal policies, unless the employee is entitled to leave as a reasonable accommodation under the Americans with Disabilities Act. It can be either paid or unpaid and may or may not be in addition to the state-mandated paid sick time.   The Family Medical Leave Act is another federal law that allows eligible employees to take unpaid, job-protected leave for certain family and medical reasons and may be an option for employees to look into when considering leave as well. If an employee wants to take sick leave, they may want to speak with a lawyer about their condition to determine if they qualify for legal protections under the Americans with Disabilities Act or Family Medical Leave Act, rather than just their employer’s internal leave policies.

2. Accrual and Use

Paid Sick Time: Employees in Arizona accrue paid sick time based on the hours they work, with clear limits on the amount that can be accrued annually. This time can be used for specific purposes defined by law.

Sick Leave: Sick leave policies vary by employer and may not accrue based on hours worked. Employers may offer a set number of days per year or provide sick leave on an as-needed basis without specific accrual rules.  Employees should also look into their medical leave rights under the Family Medical Leave Act and Americans with Disabilities Act in conjunction with their employer’s policies as well.

3. Compensation

Paid Sick Time: As the name suggests, paid sick time is compensated at the employee’s regular rate of pay, ensuring that workers do not suffer financially when they need to take time off for health reasons.

Sick Leave: Sick leave may or may not be compensated, depending on the employer’s policies. Some employers offer paid sick leave, while others provide unpaid leave after an employee has used their paid sick time.  The Family Medical Leave Act also allows some employees unpaid leave for medical reasons as well. Employees should also look into their rights under the Americans with Disabilities Act as well.

4. Flexibility and Additional Benefits

Paid Sick Time: Paid sick time in Arizona is strictly defined by state law, with limited flexibility in how it is accrued and used. It is intended to cover essential health-related absences and emergencies.

Sick Leave: Employers may offer additional sick leave or integrate it with other benefits, such as personal time off (PTO) or vacation days. This provides more flexibility for employees to manage their time off but it may come with different rules and limitations.  The Family Medical Leave Act and Americans with Disabilities Act may apply as well.

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The Law about Paid Sick Time in Arizona

In Arizona, paid sick time is governed by the Fair Wages and Healthy Families Act, which was enacted following the approval of Proposition 206 in November 2016. This law mandates that employees earn paid sick leave based on their hours worked, with specific provisions depending on the size of the employer.

This law introduced a minimum wage increase and established paid sick time requirements for nearly all private sector employees in the state. The law took effect on July 1, 2017, marking a significant shift in how sick time is managed and enforced across Arizona.

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Key Provisions of the Fair Wages and Healthy Families Act

1. Accrual of Paid Sick Time

Under the Act, employees accrue one hour of paid sick time for every 30 hours worked. The total amount of sick time an employee can accrue depends on the size of their employer:

  • For Employers with 15 or More Employees: Employees can earn up to 40 hours of paid sick time per year, accruing one hour for every 30 hours worked.

  • For Employers with Fewer than 15 Employees: Employees can earn up to 24 hours of paid sick time per year, also accruing one hour for every 30 hours worked.

Employees are entitled to start accruing paid sick time from the first day of employment, although they may be required to wait 90 days before using it.

2. Permitted Uses of Paid Sick Time

Paid sick time under the Act can be used for various health-related reasons, including:

  • Personal illness, injury, or health conditions.

  • Medical diagnosis, care, or treatment.

  • Care for a family member who is ill or needs medical attention.

  • Absences due to domestic violence, sexual violence, abuse, or stalking.

  • Public health emergencies affecting the employee or their child's school or daycare.

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Employer Responsibilities and Compliance

Employers have several responsibilities under the Fair Wages and Healthy Families Act to ensure compliance:

1. Notice and Recordkeeping: Employers must provide employees with written notice of their rights under the Act. This notice must include details on how paid sick time is accrued, the purposes for which it can be used, and the employee’s right to be free from retaliation for using their sick time. Employers are also required to maintain accurate records of hours worked and sick time accrued and used, and they must provide the employee with how much paid sick time has accrued, been used, and has available with their regular pay stubs.

2. Documentation: Employers may request reasonable documentation to verify the need for sick time if an employee takes three or more consecutive days off. 

3. Anti-Retaliation Protections: The Act prohibits employers from retaliating against employees who use their paid sick time or raise complaints or issues regarding their right to paid sick time. Retaliation can include firing, demotion, reduction in hours, or another form of adverse employment action. Employees who believe they have been retaliated against can file a complaint with the Industrial Commission of Arizona or they can file a civil lawsuit in court.  Importantly, there is a presumption of unlawful retaliation when an employer terminates an employee or takes an adverse employment action against an employee within 90 days of that employee raising their rights under the paid sick time statute in Arizona.

4. Penalties for Non-Compliance: Employers who fail to comply with the Act may face civil penalties, including fines and orders to provide back pay or reinstate wrongfully terminated employees. The Industrial Commission of Arizona is responsible for enforcing the law and can investigate complaints and take action against employers who violate the provisions.  Employees can also file a lawsuit to enforce their rights under the paid sick time statute, including when an employer unlawfully denies paid sick time or retaliates against an employee for raising their rights under the law.  An employee can be entitled to recover their attorneys’ fees and costs, and there are even mandatory minimum damages associated with unlawful retaliation under the paid sick time statute.

Understanding your rights regarding paid sick time in Arizona is essential for maintaining your health and financial security. Arizona's paid sick time laws provide valuable protections that allow employees to take necessary time off without fear of losing income or their jobs. 

By staying informed about these rights and knowing how to exercise them, employees can ensure that they are treated fairly and that their well-being is prioritized in the workplace.

Contact us today if you need any further help or want to learn more about pursuing your legal rights under the Arizona Paid Sick Time Statute!

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