Arizona's Universal Earned Paid Sick Time: What Employers Need to Know
Arizona's Proposition 206 mandates earned paid sick time for all employees, regardless of employer size. This isn't a suggestion; it's a critical compliance pillar. Every hour worked accrues sick time, capped annually based on employer size, and comes with a strict 90-day waiting period. Teambridge ensures these accruals and usage rules are applied without manual oversight.
Earned Paid Sick Time (Prop 206)
Universal coverage — ALL employers. 1 hour per 30 worked. 40-hour cap (15+ employees), 24-hour cap (under 15). 90-day waiting period. No tip credit during PSL.
What those rules do as an Arizona shift is created.
Teambridge integrates Arizona's Earned Paid Sick Time rules directly into your scheduling and payroll processes. This means every shift an employee works automatically updates their sick time balance, and any attempt to use sick time is validated against their accrued balance and eligibility.
Real-time Accrual
For every 30 hours an employee works, 1 hour of paid sick time is automatically added to their balance. This calculation occurs in real-time as shifts are completed, ensuring balances are always current.
Cap Enforcement
The system automatically enforces annual accrual caps: 40 hours for employers with 15 or more employees, and 24 hours for those with fewer than 15. Once the cap is reached, no further sick time accrues until the next benefit year.
Waiting Period Validation
Teambridge prevents the use of accrued sick time by employees before their 90-day waiting period from the start of employment has elapsed, flagging any early requests for review.
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Arizona's Earned Paid Sick Time ensures universal access for all workers.
Proposition 206, enacted in 2017, established the right for nearly all Arizona employees to accrue and use paid sick time. This applies to all employers, regardless of size, though the annual accrual cap varies based on the number of employees.
A.R.S. § 23-372. Accrual of earned paid sick time; use of earned paid sick time
A. All employees, except those excluded by federal law, shall accrue a minimum of one hour of earned paid sick time for every thirty hours worked. Employers shall not be required to allow an employee to accrue more than forty hours of earned paid sick time in a benefit year, unless the employer selects a higher limit. Employers with less than fifteen employees shall not be required to allow an employee to accrue more than twenty-four hours of earned paid sick time in a benefit year, unless the employer selects a higher limit.
B. Employees shall begin to accrue earned paid sick time on the first day of employment, but may not use earned paid sick time until the ninetieth calendar day of employment.
C. Earned paid sick time may be used for: 1. An employee's mental or physical illness, injury or health condition; 2. Care for a family member with a mental or physical illness, injury or health condition; 3. Public health emergency reasons; or 4. Absences due to domestic violence, sexual violence, abuse, or stalking.
Accrual and Caps
Employees in Arizona accrue paid sick time at a rate of 1 hour for every 30 hours worked. There is no distinction made for full-time, part-time, or temporary status—all hours worked contribute to accrual. The total amount of paid sick time an employee can accrue in a benefit year is capped based on employer size:
- Employers with 15 or more employees: Annual cap of 40 hours.
- Employers with fewer than 15 employees: Annual cap of 24 hours.
Employers may choose to allow employees to accrue more than these minimum caps, but are not required to do so. Unused sick time carries over to the next benefit year, but the annual usage cap still applies. Employers are not required to pay out unused sick time upon termination.
Usage and Waiting Period
While employees begin accruing earned paid sick time from their first day of employment, they cannot use it until the 90th calendar day of employment. Once eligible, employees can use sick time for a broad range of reasons, including their own health needs, caring for a family member, public health emergencies, or issues related to domestic or sexual violence. Employers cannot require an employee to find a replacement worker as a condition for using earned paid sick time.
Importantly, for tipped employees, employers cannot claim a tip credit for any hours an employee uses earned paid sick time. The employee must be paid the full minimum wage for those hours.
Teambridge puts Arizona's Earned Paid Sick Time on autopilot.
Managing paid sick leave accruals, caps, and waiting periods across a workforce, especially with varying employer sizes and employee tenure, is complex. Teambridge automates every aspect of Arizona's Prop 206, ensuring continuous compliance and eliminating manual tracking errors.
Automatic Sick Time Accrual
As soon as an employee's shift is closed, their hours worked are tallied, and the corresponding sick time is automatically added to their balance, adhering to the 1-hour-per-30-worked rule.
Dynamic Cap Enforcement
Teambridge intelligently applies the correct annual accrual cap (24 or 40 hours) based on your declared employer size, stopping accruals once the limit is reached within the benefit year.
90-Day Waiting Period Lock
Employee profiles are automatically flagged during their initial 90-day employment period, preventing any attempt to use accrued sick time before they are legally eligible.
Transparent Balance Reporting
Employees and managers have instant access to current sick time balances, accrual history, and usage records, ensuring transparency and reducing inquiries.
People also ask.
Does Arizona's paid sick time apply to all employers?
Yes, Arizona's Earned Paid Sick Time law (Proposition 206) applies to all employers, regardless of their size. The only difference based on employer size is the annual accrual cap.
What is the accrual rate for earned paid sick time in Arizona?
Employees accrue a minimum of one hour of earned paid sick time for every 30 hours worked. This applies to all hours worked, including overtime, up to the annual cap.
What are the annual caps for paid sick time in Arizona?
For employers with 15 or more employees, the annual accrual cap is 40 hours. For employers with fewer than 15 employees, the annual accrual cap is 24 hours. These are minimums, and employers can choose to offer more.
Is there a waiting period before employees can use accrued sick time?
Yes, employees begin accruing sick time from their first day of employment, but they cannot use any accrued time until the 90th calendar day of employment.
Can unused sick time be carried over to the next year?
Yes, unused earned paid sick time carries over to the next benefit year. However, employees are still subject to the annual usage caps (24 or 40 hours) in any given benefit year, regardless of how much time they have carried over.
Do employers have to pay out unused sick time upon termination?
No, Arizona law does not require employers to pay out unused earned paid sick time upon an employee's termination, resignation, retirement, or other separation from employment.