REFERENCE TITLE: minimum wage; sick time repeal
State of Arizona
Second Regular Session
Senators Allen S: Barto, Borrelli, Burges, Fann, Farnsworth D, Griffin, Kavanagh, Kerr, Petersen, Pratt, Worsley, Yee; Representatives Cook, Leach
A CONCURRENT RESOLUTION
enacting and ordering the submission to the people of a measure relating to employment practices.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it resolved by the Senate of the State of Arizona, the House of Representatives concurring:
1. Under the power of the referendum, as vested in the Legislature, the following measure, relating to employment practices, is enacted to become valid as a law if approved by the voters and on proclamation of the Governor:
Repealing section 23-362, Arizona Revised Statutes, as amended by laws 1997, chapter 51, section 1; amending sections 23-363 and 23-364, Arizona Revised Statutes; repealing title 23, chapter 2, article 8.1, Arizona Revised Statutes; repealing proposition 206, sections 1, 2, 6 and 7, election of november 8, 2016; relating to employment practices.
Be it enacted by the Legislature of the State of Arizona:
Section 1. Repeal
Section 23-362, Arizona Revised Statutes, as amended by Laws 1997, chapter 51, section 1, is repealed.
Sec. 2. Heading change
The article heading of title 23, chapter 2, article 8, Arizona Revised Statutes, is changed from "MINIMUM WAGE AND EMPLOYEE BENEFITS" to "MINIMUM WAGE".
Sec. 3. Section 23-363, Arizona Revised Statutes, is amended to read:
23-363. Minimum wage; state preemption
A. Employers shall pay employees no not less than the minimum wage, which shall be not less than:
1. $10 on and after January 1, 2017.
2. $10.50 on and after January 1, 2018.
3. $11 on and after January 1, 2019.
4. $12 on and after January 1, 2020.
B. The minimum wage shall be increased on January 1, 2021 and on January 1 of successive years, by the increase in the cost of living. The increase in the cost of living shall be measured by the percentage increase as of August of the immediately preceding year over the level as of August of the previous year of the consumer price index (all urban consumers, U.S. city average for all items) or its successor index as published by the U.S. department of labor or its successor agency, with the amount of the minimum wage increase rounded to the nearest multiple of five cents ten dollars fifty cents per hour.
C. B. For any employee who customarily and regularly receives tips or gratuities from patrons or others, the employer may pay a wage up to $3.00 three dollars per hour less than the minimum wage if the employer can establish by its records of charged tips or by the employee's declaration for federal insurance contributions act (FICA) purposes that for each week, when adding tips received to wages paid, the employee received not less than the minimum wage for all hours worked. Compliance with this provision subsection will be determined by averaging tips received by the employee over the course of the employer's payroll period or any other period selected by the employer that complies with regulations adopted by the commission.
C. The establishment of a uniform minimum wage is of statewide concern. A county, city, town or other political subdivision of this state may not establish, mandate or otherwise require a minimum wage that is more than the minimum wage established in this section.
Sec. 4. Section 23-364, Arizona Revised Statutes, is amended to read:
A. The commission is authorized to enforce and implement this article and may promulgate regulations adopt rules consistent with this article to do so. For purposes of this section: (1) "article shall mean both article 8 and article 8.1 of this chapter; (2) "earned paid sick time" is as defined in section 23‑371, Arizona Revised Statutes; (3) "employer" shall refer to the definition of employer in section 23-362, Arizona Revised Statutes, for purposes of minimum wage enforcement and shall refer to the definition of employer in section 23-371, Arizona Revised Statutes, for purposes of earned paid sick time enforcement; and (4) "retaliation" shall mean denial of any right guaranteed under article 8 and article 8.1 of this chapter and any threat, discharge, suspension, demotion, reduction of hours, or any other adverse action against an employee for the exercise of any right guaranteed herein including any sanctions against an employee who is the recipient of public benefits for rights guaranteed herein. Retaliation shall also include interference with or punishment for in any manner participating in or assisting an investigation, proceeding or hearing under this article.
B. No employer or other person shall discriminate or subject any person to retaliation for asserting any claim or right under this article, for assisting any other person in doing so, or for informing any person about their rights. Taking adverse action against a person within ninety days of a person's engaging in the foregoing activities shall raise a presumption that such action was retaliation, which may be rebutted by clear and convincing evidence that such action was taken for other permissible reasons.
C. B. Any person or organization may file an administrative complaint with the commission charging that an employer has violated this article as to any employee or other person. When the commission receives a complaint, the commission may review records regarding all employees at the employer's worksite in order to protect the identity of any employee identified in the complaint and to determine whether a pattern of violations has occurred. The name of any employee identified in a complaint to the commission shall be kept confidential as long as possible. Where the commission determines that an employee's name must be disclosed in order to investigate a complaint further, it may so do only with the employee's consent.
D. C. Employers shall post notices in the workplace, in such a format specified by the commission, notifying employees of their rights under this article. Employers shall provide their business name, address, and telephone number in writing to employees upon on hire. Employers shall maintain payroll records showing the hours worked for each day worked, and the wages and earned paid sick time paid to all employees for a period of four years. Failure to do so shall raise raises a rebuttable presumption that the employer did not pay the required minimum wage rate or earned paid sick time. The commission may by regulation rule reduce or waive the recordkeeping and posting requirements herein prescribed in this section for any categories of small employers whom that it finds would be unreasonably burdened by such the requirements. Employers shall permit the commission or a law enforcement officer to inspect and copy payroll or other business records, shall permit them to interview employees away from the worksite, and shall not hinder any investigation. Such The information provided shall keep be kept confidential except as is required to prosecute violations of this article. Employers shall permit an employee or his or her the employee's designated representative to inspect and copy payroll records pertaining to that employee.
E. D. A civil action to enforce this article may be maintained in a court of competent jurisdiction by a law enforcement officer or by any private party injured by a violation of this article.
F. E. Any employer who that violates recordkeeping, posting, or other requirements that the commission may establish establishes under this article shall be is subject to a civil penalty of at least $250 two hundred fifty dollars for a first violation, and at least $1000 one thousand dollars for each subsequent or willful wilful violation and may, if the commission or court determines appropriate, may be subject to special monitoring and inspections.
G. F. Any employer who that fails to pay the wages or earned paid sick time required under this article shall be required to pay the employee the balance of the wages or earned paid sick time owed, including interest thereon on the wages owed, and an additional amount equal to twice the underpaid wages or earned paid sick time. Any employer who retaliates against an employee or other person in violation of this article shall be required to pay the employee an amount set by the commission or a court sufficient to compensate the employee and deter future violations, but not less than one hundred fifty dollars for each day that the violation continued or until legal judgment is final. The commission and the courts shall have the authority to order payment of such unpaid wages, unpaid earned sick time, other amounts, and civil penalties and to order any other appropriate legal or equitable relief for violations of this article. Civil penalties shall be retained by the agency that recovered them and used to finance activities to enforce this article. A prevailing plaintiff shall be entitled to reasonable attorney's attorney fees and costs of suit.
H. G. A civil action to enforce this article may be commenced no not later than two years after a violation last occurs, or three years in the case of a willful wilful violation, and may encompass all violations that occurred as part of a continuing course of employer conduct regardless of their date. The statute of limitations shall be tolled during any investigation of an employer by the commission or other law enforcement officer, but such the investigation shall not bar a person from bringing a civil action under this article. No a verbal or written agreement or employment contract may not waive any rights under this article.
I. H. The legislature may by statute raise the minimum wage established under this article, extend coverage, or increase penalties. A county, city, or town may by ordinance regulate minimum wages and benefits within its geographic boundaries but may not provide for a minimum wage lower than that prescribed in this article. State agencies, counties, cities, towns and other political subdivisions of the this state may consider violations of this article in determining whether employers may receive or renew public contracts, financial assistance or licenses. This article shall be liberally construed in favor of its purposes and shall not limit the authority of the legislature or any other body to adopt any law or policy that requires payment of higher or supplemental wages or benefits, or that extends such protections to employers or employees not covered by this article, except that a county, city, town or other political subdivision of this state may not establish, mandate or otherwise require a minimum wage that is more than the minimum wage established in section 23-363.
Sec. 5. Repeal
Title 23, chapter 2, article 8.1, Arizona Revised Statutes, is repealed.
Sec. 6. Repeal
Proposition 206, sections 1, 2, 6 and 7, election of November 8, 2016, are repealed.
2. The Secretary of State shall submit this proposition to the voters at the next general election as provided by article IV, part 1, section 1, Constitution of Arizona.