REFERENCE TITLE: nonwage compensation; minimum wage
State of Arizona
House of Representatives
Second Regular Session
Representatives Mesnard: Petersen
amending sections 23‑204 and 23‑350, Arizona Revised Statutes; amending section 23‑362, Arizona Revised Statutes, as added by laws 1997, chapter 51, section 1; relating to the payment of wages.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 23-204, Arizona Revised Statutes, is amended to read:
23-204. Employee benefits; state preemption; exemption; definition
A. The regulation of employee benefits, including nonwage compensation, paid and unpaid leave and other absences, meal breaks and rest periods, is of statewide concern. The regulation of nonwage employee benefits pursuant to this chapter and federal law is not subject to further regulation by a city, town or other political subdivision of this state.
B. This section does not apply to any employee benefit, including compensation, paid and unpaid leave and other absences, meal breaks and rest periods, provided by a city, town or other political subdivision of this state to any of its employees.
C. For the purposes of this section, "nonwage compensation" includes fringe benefits, welfare benefits, child or adult care plans, sick pay, vacation pay, severance pay, commissions, bonuses, retirement plan or pension contributions, other employment benefits provided in 29 United States Code section 2611 and other amounts promised to the employee that are more than the minimum compensation due an employee by reason of employment.
Sec. 2. Section 23-350, Arizona Revised Statutes, is amended to read:
In this article, unless the context otherwise requires:
1. "Department" means the labor department of the industrial commission of Arizona.
2. "Employee" means any person who performs services for an employer under a contract of employment either made in this state or to be performed wholly or partly within this state.
3. "Employer" means any individual, partnership, association, joint stock company, trust, or corporation, the administrator or executor of the estate of a deceased individual or the receiver, trustee or successor of any of such persons employing any person. Employer also includes this state and any county, municipality, school district or other political subdivision of this state.
4. "Hours worked" includes all time an employee is employed.
5. "Minimum wage" means the nondiscretionary minimum compensation due an employee by reason of employment, including the employee's commissions, but excluding tips or gratuities.
5. 6. "Payroll card account" means an account that is directly or indirectly established through an employer and to which electronic fund transfers of an employee's wages are made on a recurring basis whether the account is operated or managed by the employer, a third-party payroll processor, a depository institution or any other person.
6. 7. "Wages" means nondiscretionary compensation due an employee in return for labor or services rendered by an employee for which the employee has a reasonable expectation to be paid whether determined by a time, task, piece, commission or other method of calculation. Wages include sick pay, vacation pay, severance pay, commissions, bonuses and other amounts promised when the employer has a policy or a practice of making such payments.
Sec. 3. Subject to the requirements of article IV, part 1, section 1, Constitution of Arizona, section 23-362, Arizona Revised Statutes, as added by Laws 1997, chapter 51, section 1, is amended to read:
23-362. Minimum wage
A. The legislature declares that the establishment of a uniform minimum wage is a matter of statewide concern.
B. No A political subdivision of this state may establish, mandate or otherwise require a minimum wage that exceeds the federal minimum wage as prescribed in 29 United States Code section 206 section 23‑363.
Sec. 4. Requirements for enactment; three-fourths vote
Pursuant to article IV, part 1, section 1, Constitution of Arizona, section 23‑362, Arizona Revised Statutes, as added by Laws 1997, chapter 51, section 1 and amended by this act, is effective only on the affirmative vote of at least three-fourths of the members of each house of the legislature.