SB1465 - 572R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Title 23, chapter 2, article 1, Arizona Revised Statutes, is amended by adding section 23-207, to read:

START_STATUTE23-207. Heat illness prevention; private right of action; rules; definitions

A. The industrial commission of Arizona shall adopt rules establishing standards for every industry that may be affected by heat illness as provided in this section that are designed to protect employees from heat illness while engaged in indoor and outdoor work. These standards apply to all indoor and outdoor places of employment and to all employers that fall within the jurisdiction of the division of occupational safety and health. The commission shall create specific standards for the following industries:

1. Agriculture.

2. Construction.

3. Landscaping.

4. Oil and gas extraction.

5. Airport workers.

6. Mail and package delivery workers.

7. Transportation or delivery of agricultural products, construction materials or other heavy materials, including furniture, lumber, freight, cargo, cabinets and industrial or commercial materials, except for employment that consists of operating an air-conditioned vehicle and that does not include loading or unloading.

B. Standards adopted pursuant to this section must require each employer to provide potable water and access to facilities as follows:

1. An employer shall provide employees, at no cost to the employees, access to drinking water in quantities sufficient to maintain adequate levels of hydration at varying levels of heat, using a baseline of one cup of cool water per fifteen to twenty minutes, as well as electrolytes if employees have been working for over an hour in conditions at or above ninety degrees fahrenheit.

2. The water and access to a restroom must be located as close as practicable to the areas where employees are working and may not be farther than four hundred feet walking distance from an employee's work area.

3. Employers may begin the shift with smaller quantities of water that are replenished during the shift as needed.

4. The employer shall provide water that is suitably cool and potable and shall provide the water to employees free of charge.

5. The employer shall encourage the frequent drinking of water as described in subsection H, paragraph 3, subdivision (c).

C. Standards adopted pursuant to this section shall require each employer to provide access to shade or a climate-controlled environment as follows:

1. When the temperature in the work area is more than ninety degrees Fahrenheit, the employer shall provide and maintain at all times while employees are present one or more areas with shade or a climate-controlled environment that are either open to the air or provided with ventilation or cooling. The amount of shade or climate-controlled environment provided shall be at least enough to accommodate the number of employees on rest periods so that they can sit in a normal posture fully in the shade or climate-controlled environment without having to be in physical contact with each other. The shade or climate-controlled environment shall be located as close as practicable to the areas where employees are working. Subject to the same specifications, the amount of shade or climate-controlled environment present during meal periods shall be at least enough to accommodate the number of employees on the meal period who remain on-site.

2. When the temperature in the work area is not more than ninety degrees Fahrenheit during daylight hours, employers shall provide either shade or a climate-controlled environment in accordance with paragraph 1 of this subsection or provide access to shade or a climate-controlled environment on an employee's request.

3. An employer shall allow and encourage employees to take a cool-down rest period in the shade or climate-controlled environment for preventative measures. An employer shall comply with all of the following when an employee takes a preventative cool-down rest period pursuant to this paragraph:

(a) The employer shall ask if the employee is experiencing symptoms of heat illness.

(b) The employer shall encourage the employee to remain in the shade or climate-controlled environment.

(c) The employer may not order the employee back to work until any signs or symptoms of heat illness have abated, but not less than five minutes in addition to the time needed to access the shade or climate-controlled environment.

4. When the temperature is more than ninety degrees Fahrenheit in a vehicle that is idle or not producing air conditioning.

5. When the employee is working in an attic, the employee must have access to cool air and sufficient breaks.

D. Standards adopted pursuant to this section shall require each employer to implement high-heat procedures that do all of the following when the temperature equals or exceeds ninety degrees Fahrenheit:

1. Ensure that employees are able to contact their supervisor by any method of effective communication when necessary.

2. Require an employer to effectively observe and monitor employees for signs or symptoms of heat illness by implementing two or more of the following policies:

(a) A requirement that there be at least one supervisor or supervisor's designee responsible for observing and monitoring each group of twenty or fewer employees.

(b) A mandatory buddy system.

(d) Other effective means of observation.

3. Designate one or more employees on each worksite who are authorized to call for emergency medical services, and if no designated employees are available, allow other employees to call on their behalf.

4. Require reminding employees throughout the work shift to stay properly hydrated.

5. For employees employed in agriculture, require preshift meetings before the beginning of each work shift to review the high-heat procedures, encourage employees to drink plenty of water and remind employees of their right to take a cool-down rest period when necessary.

E. Standards adopted pursuant to this section shall require each employer to provide rest periods that range in duration from fifteen to forty-five minutes per hour, depending on the workplace temperature and worker activity level.

F. Standards adopted pursuant to this section shall require each employer to implement effective emergency response procedures pursuant to which the employer shall both:

1. Ensure that effective communication by voice, observation or electronic means is maintained so that employees at the worksite can contact a supervisor or emergency medical services when necessary. An electronic device, such as a cell phone or text messaging device, may be used for this purpose only if reception in the area is reliable.

2. Respond to signs and symptoms of possible heat illness if a supervisor observes, or any employee reports, any signs or symptoms of heat illness in any employee. The supervisor shall take immediate action commensurate with the severity of the illness, including first aid measures and contacting emergency medical services. If the employee exhibits signs or symptoms severe enough to indicate heat illness, the employee may not be sent home without being offered on-site first aid or provided with emergency medical services.

G. Standards adopted pursuant to this section shall require that all employees who begin employment in high-heat environments, or who will be working in hotter conditions than usual, such as during a heat wave, be gradually acclimatized to the work over a period of between seven and fourteen days.

H. Standards adopted pursuant to this section shall require each employer to provide effective training to employees and supervisors that meets all of the following requirements:

1. Is in a language that the employee or supervisor understands.

2. Is provided to each supervisor before supervising employees performing work that may reasonably result in exposure to the risk of heat illness and to each nonsupervisory employee before the employee begins work that may reasonably result in exposure to the risk of heat illness.

3. Covers all of the following topics:

(a) The environmental risk factors for heat illness and personal risk factors for heat illness, including medical conditions, water consumption, alcohol use, the use of medications that affect the body's response to the heat and the burden caused by personal protective equipment.

(b) The employer's procedures for complying with the standards adopted pursuant to this section, including the employer's responsibility to provide water, shade or a climate-controlled environment, cool-down rest periods and access to first aid, as well as the employee's right to exercise rights under these standards without retaliation.

(c) The importance of frequent consumption of water, up to four cups per hour, when the work environment is above ninety degrees Fahrenheit and employees are likely sweating more than usual.

(d) The importance of acclimatization.

(e) The different types of heat illness, the common signs and symptoms of heat illness and appropriate first aid and emergency responses to the different types of heat illness.

(f) The importance of immediately reporting to the employer, directly or through the employee's supervisor, symptoms or signs of heat illness in themselves or in coworkers.

(g) The employer's procedures for responding to signs or symptoms of possible heat illness, including how emergency medical services will be contacted and provided should they become necessary.

4. For supervisors, in addition to the requirements of paragraph 3 of this subsection, covers the procedures the supervisor is required to follow:

(a) To implement the applicable standards adopted pursuant to this section.

(b) When an employee exhibits signs or reports symptoms consistent with possible heat illness, including emergency response procedures.

I. In adopting standards pursuant to this section, the industrial commission of Arizona shall consider criteria relating to recommended standards for occupational exposure to heat and hot environments established by a national institute for occupational safety and health.

J. The rules adopted by the industrial commission of Arizona pursuant to this section shall include the following:

1. Building requirements for interior work environments that include air circulation and insulation standards.

2. Educational and training requirements for employees related to heat illness identification, prevention and preparation.

3. Personal protective equipment for employees in temperatures of more than ninety degrees fahrenheit that includes cooling towels and hats for sun protection.

4. Enforcement provisions.

K. An employer may not discharge or discriminate in any other manner against employees for exercising their rights under this section.

L. An employee may bring a private right of action for a violation of this section in a court of competent jurisdiction to do either or both of the following:

1. Enjoin the violation.

2. Recover actual monetary losses from the violation or receive $500 in damages for each violation, whichever is greater.

M. For the purposes of this section:

1. "Acclimatization" means the gradual, temporary adaptation of the body to work in the heat when a person is exposed to heat.

2. "Buddy system" means a procedure in which two individuals, the buddies, operate together as a single unit so that they are able to MONITOR and help each other.

3. "Environmental risk factors for heat illness" means working conditions that create the possibility that heat illness could occur, including air temperature, relative humidity, radiant heat from the sun and other sources, conductive heat sources such as the ground, air movement, workload severity and duration, protective clothing and personal protective equipment worn by employees.

4. "Heat illness":

(a) Means a serious medical condition resulting from the body's inability to cope with a particular heat load.

(b) Includes heat cramps, heat exhaustion, heat syncope and heat stroke.

5. "Heat wave" means any day in which the predicted high temperature for the day will be at least ninety degrees Fahrenheit and at least ten degrees Fahrenheit higher than the average high daily temperature in the preceding five days.

6. "Landscaping":

(a) Means providing landscape care and maintenance services, installing trees, shrubs, plants, lawns or gardens or providing these services in conjunction with the design of landscape plans.

(b) Includes constructing, installing or maintaining walkways, retaining walls, decks, fences, ponds and similar structures.

7. "Oil and gas extraction" means operating or developing oil and gas field properties, exploring for crude petroleum or natural gas, mining or extracting of oil or gas or recovering liquid hydrocarbons from oil or gas field gases.

8. "Personal risk factors for heat illness" means factors such as an individual's age, degree of acclimatization, health, water consumption and use of prescription medications that affect the body's water retention or other physiological responses to heat.

9. "Potable water" has the same meaning prescribed in 29 Code of Federal Regulations section 1910.141(a)(2).

10. "Rest period" means a cool-down period made available to an employee to prevent heat illness.

11. "Shade" means the complete blockage of direct sunlight that allows the body to cool. Shade may be provided by any artificial means that does not expose employees to unsafe or unhealthy conditions and does not deter or discourage access or use. END_STATUTE

Sec. 2. Title 23, chapter 2, Arizona Revised Statutes, is amended by adding article 8.2, to read:

ARTICLE 8.2. FAMILY AND MEDICAL LEAVE

START_STATUTE23-382. Definitions

In this article, unless the context otherwise requires:

1. "Abuse" has the same meaning prescribed in section 23-371.

2. "Application year" means the twelve-month period beginning on the first day of the calendar week in which an individual files an application for family and medical leave insurance benefits.

3. "Average weekly wage" means one-thirteenth of the covered individual's total wages for covered work paid during the quarter of the person's base period in which such total wages were highest.

4. "Base period" has the same meaning prescribed in section 23-605.

5. "Commission" means the industrial commission of Arizona.

6. "Covered individual" means any person who meets all of the following requirements:

(a) Meets one of the following:

(i) Has been paid wages for covered work during the individual's base period equal to at least one and one-half times the wages paid to the individual in the calendar quarter of the individual's base period in which the wages were highest, and the individual has been paid wages for covered work in one calendar quarter of the individual's base period equal to an amount that is equal to at least three hundred ninety times the minimum wage prescribed by section 23-363 that is in effect when the individual files a claim for benefits.

(ii) Has been paid wages for covered work during at least two quarters of the individual's base period and the amount of the wages paid in one quarter would be sufficient to qualify the individual for the maximum weekly benefit amount payable under this article and the total of the individual's base-period wages is equal to or greater than the taxable limit for unemployment insurance as specified in section 23-622, subsection B, paragraph 1.

(iii) Is self-employed, elects coverage and meets the requirements of section 23-382.12.

(b) Meets the administrative requirements outlined in this article and in rules adopted pursuant to this article.

7. "Director" means the director of the commission.

8. "Domestic violence" has the same meaning prescribed in section 23-371.

9. "Employee" has the same meaning prescribed in section 23-362.

10. "Employer" has the same meaning prescribed in section 23-371, except that an employer also includes this state.

11. "Family and medical leave insurance benefits" means the benefits provided under this article.

12. "Family member" has the same meaning prescribed in section 23-371.

13. "Health care provider" means any person licensed under federal law or the laws of this state to provide medical or emergency services, including doctors, nurses and emergency room personnel, or certified midwives.

14. "Qualifying exigency leave" means leave based on a need arising out of a covered individual's family member's active duty service or notice of an impending call or order to active duty in the Armed Forces, including any of the following:

(a) Providing for the care or other needs of the military member's child or other family member.

(b) Making financial or legal arrangements for the military member.

(d) Attending military events or ceremonies.

(e) Spending time with the military member during a rest and recuperation leave or following return from deployment.

(f) Making arrangements following the death of the military member.

15. "Retaliatory personnel action":

(a) Means denial of any right guaranteed under this article, including either of the following:

(i) Any threat, discharge, suspension, demotion or reduction of hours or any other adverse action against an employee for the exercise of any right guaranteed in this article.

(ii) Reporting or threatening to report an employee's suspected citizenship or immigration status or the suspected citizenship or immigration status of a family member of the employee to a federal, state or local agency.

(b) Includes interference with or punishment for in any manner participating in or assisting an investigation, proceeding or hearing under this article.

16. "Safe leave" means, notwithstanding section 13-4439, absence necessary due to domestic violence, sexual violence, abuse or stalking, if the leave is to allow the covered individual to obtain for the covered individual or the covered individual's family member any of the following:

(a) Medical attention needed to recover from physical or psychological injury or disability caused by domestic violence, sexual violence, abuse or stalking.

(b) Services from a domestic violence or sexual violence program or victim services organization.

(d) Relocation or taking steps to secure an existing home due to the domestic violence, sexual violence, abuse or stalking.

(e) Legal services, including preparing for or participating in any civil or criminal legal proceeding related to or resulting from the domestic violence, sexual violence, abuse or stalking.

17. "Serious health condition" has the same meaning prescribed in section 101 of the family and medical leave act of 1993 (P.L. 103–3; 107 Stat. 6).

18. "Sexual violence" has the same meaning prescribed in section 23-371.

19. "Stalking" has the same meaning prescribed in section 23-371.

20. "State average weekly wage" means the average monthly wage, as calculated under section 23-1041, subsection E, divided by 4.5. END_STATUTE

START_STATUTE23-382.01. Eligibility for benefits

Beginning January 1, 2030, family and medical leave insurance benefits are payable to an individual who both:

1. Meets the definition of covered individual under this article.

2. Meets one of the following requirements:

(a) Because of birth, adoption or placement through foster care, is caring for a new child during the first year after the birth, adoption or placement of that child.

(b) Is caring for a family member with a serious health condition.

(c) Is pregnant or recovering from childbirth or has an illness, injury, impairment or physical or mental condition that involves inpatient care in a hospital, hospice or residential medical care facility or continuing treatment by a health care provider and that makes the covered individual unable to perform the functions of the employee's position.

(d) Qualifies for qualifying exigency leave arising out of the fact that the family member of the covered individual is on active duty or has been notified of an impending call or order to active duty in the Armed Forces.

(e) Is in need of safe leave. END_STATUTE

START_STATUTE23-382.02. Duration of benefits

A. The maximum number of weeks during which family and medical leave insurance benefits are payable to a covered individual in an application year is as follows:

1. Under section 23-382.01, paragraph 2, subdivision (c), twenty-six weeks.

2. Under section 23-382.01, paragraph 2, subdivision (a), (b), (d) or (e), twenty-four weeks.

B. A covered individual is eligible for twenty-six weeks of leave under subsection A, paragraph 1 of this section and twenty-four weeks of leave under subsection A, paragraph 2 of this section in an application year.

C. In addition to the family and medical leave insurance benefits that are prescribed in subsection A of this section, an employer:

1. May provide additional leave benefits for a covered individual.

2. Shall provide a minimum of twelve weeks of leave to a covered individual.

D. The first payment of benefits must be made to a covered individual within two weeks after the claim is filed and subsequent payments must be made every two weeks thereafter. END_STATUTE

START_STATUTE23-382.03. Amount of benefits

A. The weekly amount of family and medical leave insurance benefits is determined as follows:

1. If the covered individual's average weekly wage is equal to or less than one-half of the state average weekly wage, the benefit amount is equal to ninety percent of the covered individual's average weekly wage.

2. If the covered individual's average weekly wage is greater than one-half of the state average weekly wage, the benefit amount is the sum of both of the following:

(a) Ninety percent of one-half of the state average weekly wage.

(b) Fifty percent of the difference of the covered individual's average weekly wage and one-half of the state average weekly wage.

B. Beginning January 1, 2030, the maximum weekly benefit amount calculated pursuant to subsection A of this section is not more than $1,000 per week, except that annually, not later than October 1 of each year thereafter, the commission shall adjust the maximum weekly benefit amount to be ninety percent of the state average weekly wage and the adjusted maximum weekly benefit amount shall take effect on January 1 of the year following the adjustment.

C. The minimum weekly benefit may not be less than $100 per week, except that if the covered individual's average weekly wage is less than $100 per week, the weekly benefit shall be the covered individual's full wage.

D. Family and medical leave insurance benefits are not payable for less than eight hours of family and medical leave taken in one work week. END_STATUTE

START_STATUTE23-382.04. Contributions

A. Payroll contributions are authorized to finance the payment of benefits under the family and medical leave insurance program.

B. Beginning January 1, 2029, Payroll contributions shall be paid by employers and employees in the ratio of one-to-one in an amount to be determined by the commission.

C. Not later than October 1 of each year, the commission shall fix the contribution rate for the coming calendar year as follows:

1. For calendar years 2029 and 2030, the commission shall do so based on sound actuarial principles.

2. For calendar year 2029 and each calendar year thereafter, the commission shall first certify and publish all of the following information:

(a) The total amount of family and medical leave insurance benefits paid by the commission during the previous fiscal year.

(b) The total amount remaining in the family and medical leave insurance fund established by section 23-382.15 at the close of the fiscal year.

(c) The total amount equal to one hundred forty percent of the previous fiscal year's expenditures for family and medical leave insurance benefits paid and for the administration of the family and medical leave insurance program.

(d) The amount by which the total amount remaining in the family and medical leave insurance fund established by section 23-382.15 at the close of the previous fiscal year is less than or greater than one hundred forty percent of the previous fiscal year's expenditures for family and medical leave insurance benefits paid and for the administration of the family and medical leave insurance program.

(e) The amount by which the contribution rate shall be adjusted to ensure that the family and medical leave insurance fund established by section 23-382.15 maintains or achieves an annualized amount of not less than one hundred percent of the previous fiscal year's expenditures for family and medical leave insurance benefits paid and for the administration of the family and medical leave insurance program. The contribution rate adjustment, if any, made as the result of the commission's certification and report under this subsection shall supersede the rate previously set forth and shall become effective on January 1 of the following calendar year.

D. A self-employed individual who elects coverage under section 23-382.12 is responsible for the employee share of contributions set forth in subsection B of this section on that individual's income from self-employment. END_STATUTE

START_STATUTE23-382.05. Reduced leave schedule

A. A covered individual is entitled, at the option of the covered individual, to take paid family and medical leave on an intermittent or reduced leave schedule in which all of the leave authorized under this article is not taken sequentially. Family and medical leave insurance benefits for intermittent or reduced leave schedules shall be prorated.

B. The covered individual shall provide the employer with prior notice of the schedule on which the covered individual will be taking the leave, to the extent practicable. Paid family and medical leave taken under this section may not result in a reduction of the total amount of leave to which an employee is entitled beyond the amount of leave actually taken.

C. This section does not entitle a covered individual to more leave than required under section 23-382.02. END_STATUTE

START_STATUTE23-382.06. Leave and employment protection; enforcement

A. Any covered individual who exercises the covered individual's right to family and medical leave insurance benefits is entitled, on the expiration of that leave, to be restored by the employer to the position held by the covered individual when the leave commenced, or to a position with equivalent seniority, status, employment benefits, pay and other terms and conditions of employment, including fringe benefits and service credits, that the covered individual had been entitled to at the commencement of leave.

B. During any leave taken pursuant to this article, the employer shall maintain any health care benefits the covered individual had before taking such leave for the duration of the leave as if the covered individual had continued in employment continuously from the date the covered individual commenced the leave until the date the family and medical leave insurance benefits terminate, if the covered individual continues to pay the covered individual's share of the cost of health benefits as required before the commencement of the leave.

C. This section and section 23-382.07 shall be enforced as follows:

1. On receipt of a written complaint from an employee, the director shall investigate whether the employer has violated this article.

2. If the director determines that an employer has violated this article, the director shall do any of the following:

(a) With the written consent of the employee, attempt to informally resolve any pertinent issue through mediation.

(b) With the written consent of the employee, request the attorney general to bring an action on behalf of the employee in accordance with this article.

3. An employee may bring a civil action in a court of competent jurisdiction against the employee's employer for a violation of this article regardless of whether the employee first filed a complaint with the director.

4. An action brought under paragraph 2 or 3 of this subsection shall be filed within three years after the occurrence of the act on which the action is based.

5. If a court finds that an employer violated this article in an action brought under paragraph 2 or 3 of this subsection, the court may award the employee all of the following:

(a) The full monetary value of any unpaid family and medical leave that the employee was unlawfully denied. Unpaid family and medical leave awarded pursuant to this subdivision shall be paid to the employee without cost to the employee.

(b) Actual economic damages suffered by the employee as a result of the employer's violation of this article.

(d) Reasonable attorney fees and other costs.

(e) Any other relief that the court deems appropriate, including reinstatement of employment, back pay and injunctive relief.

6. If the action was brought by the attorney general under paragraph 2, subdivision (b) of this subsection, the court shall order the employer to pay at least $1,000 per violation to this state. END_STATUTE

START_STATUTE23-382.07. Retaliatory personnel actions prohibited

A. It is unlawful for an employer or any other person to interfere with, restrain or deny the exercise of, or the attempt to exercise, any right protected under this article.

B. An employer, temporary help company, employment agency, employee organization or other person may not take retaliatory personnel action or otherwise discriminate against a person because the person exercised rights protected under this article. These rights include all of the following:

1. Requesting, filing for, applying for or using benefits or leave provided for under this article.

2. Communicating to the employer or any other person or entity an intent to file a claim, a complaint with the commission or courts or an appeal.

3. Testifying, planning to testify or assisting in any investigation, hearing or proceeding under this article at any time, including during the waiting period and the period in which the person receives family and medical leave insurance benefits under this article.

4. Informing any person about any employer's alleged violation of this article.

5. Informing any person of a person's rights under this article.

C. It is unlawful for an employer's absence control policy to count paid family and medical leave taken under this article as an absence that may lead to or result in discipline, discharge, demotion, suspension or any other adverse action.

D. The protections of this section apply to any person who mistakenly but in good faith alleges violations of this article.

E. There is a rebuttable presumption that an employer has violated this article if the employer takes adverse action against an employee within ninety days after the employee does any of the following:

1. Files a complaint with the director alleging a violation of this article or brings a civil action under this article.

2. Informs a person about the employer's alleged violation of this article.

3. Cooperates with the director or another person in the investigation or prosecution of the employer's alleged violation of this article.

4. Opposes a policy or practice of the employer or an act of the employer that is prohibited under this article.

5. Takes or requests leave or benefits under this article.

F. An employer may overcome the rebuttable presumption established pursuant to subsection E of this section with clear and convincing evidence of all of the following:

1. That the employer's action was not retaliation against the employee.

2. That the employer had sufficient independent justification for taking the action.

3. That the employer would have in fact taken the action in the same manner and at the same time the action was taken, regardless of the employee's exercise of protected rights under this article. END_STATUTE

START_STATUTE23-382.08. Coordination of benefits

A. Leave taken with wage replacement under this article that also qualifies as leave under the family and medical leave act of 1993 (P.L. 103–3; 107 Stat. 6; 29 United States Code sections 2601 through 2654) shall run concurrently with leave taken under the family and medical leave act of 1993 (P.L. 103–3; 107 Stat. 6; 29 United States Code sections 2601 through 2654).

B. A covered individual is not required to use any accrued paid sick, vacation or annual leave, including sick leave under section 23-373, or other paid time off to which the covered individual is entitled before or while receiving family and medical leave insurance benefits, provided, however, that if the employer and the covered individual agree, a covered individual may elect to use accrued paid sick, vacation or annual leave or other paid time off to supplement family and medical leave insurance benefits under this article in order to receive full pay while on leave.

C. An employer may require that payment made pursuant to this article be made concurrently or otherwise coordinated with payment made or leave allowed under the terms of disability or family care leave under a collective bargaining agreement or employer policy. The employer must give employees written notice of this requirement.

D. This article does not diminish an employer's obligation to comply with any of the following that provide more generous leave:

1. A collective bargaining agreement.

2. Employer policy.

3. Any other law.

E. An individual's right to leave under this article may not be diminished by a collective bargaining agreement entered into or renewed, or an employer policy adopted or retained, after the effective date of this article. Any agreement by an individual to waive the individual's rights under this article is void as against public policy. END_STATUTE

START_STATUTE23-382.09. Notice; civil penalty

A. Each employer shall provide written notice that complies with this section:

1. To each employee on hiring and annually thereafter.

2. To an employee when the employee requests leave under this article.

3. To an employee when the employer acquires knowledge that the employee's leave may be for a qualifying reason under section 23-382.01.

B. Any noticed provided under this section shall include all of the following:

1. The employee's right to family and medical leave insurance benefits under this article and the terms under which it may be used.

2. The amount of family and medical leave insurance benefits.

3. The procedure for filing a claim for benefits.

4. The right to job protection and benefits continuation under section 23-382.06.

5. That discrimination and retaliatory personnel actions against a person for requesting, applying for or using family and medical leave insurance benefits is prohibited under section 23-382.07.

6. That the employee has a right to file a complaint for violations of this article.

7. The contact information for the commission where questions about rights and responsibilities under this article can be answered.

C. An employer shall also display and maintain a poster in a conspicuous place accessible to employees at the employer's place of business that contains the information required by this section in English, Spanish and any language that is the first language spoken by at least five percent of the employer's workforce, provided that such notice has been provided by the commission. The director may adopt rules to establish additional requirements concerning the means by which employers shall provide such notice.

D. In any case in which the necessity for leave under this article is foreseeable, the employee shall provide the employer with at least thirty days' notice before the date the leave is to begin, or, if such notice is not possible, the employee shall provide such notice as is practicable. In any case for which the necessity for leave under this article is not foreseeable, the employee shall provide such notice as is practicable.

E. The amount of family and medical leave available to an employee and the amount of family and medical leave taken by an employee to date in the year shall be recorded in, or on an attachment to, the employee's regular paycheck.

F. Any employer that violates the recordkeeping, posting or other requirements that the commission establishes under this section is subject to a civil penalty of at least $250 for a first violation, and at least $1,000 for each subsequent or wilful violation and, if the commission or court determines appropriate, may be subject to special monitoring and inspections. END_STATUTE

START_STATUTE23-382.10. Benefits appeals

A. The director shall establish a system for appeals in the case of a denial of family and medical leave insurance benefits.

B. Judicial review of any decision with respect to family and medical leave insurance benefits is allowed in a court of competent jurisdiction after a party aggrieved by the decision has exhausted all administrative remedies established by the director.

C. The director shall implement procedures to ensure confidentiality of all information related to any claims filed or appeals taken to the maximum extent allowed by applicable laws. END_STATUTE

START_STATUTE23-382.11. Erroneous payments and disqualification for benefits

A. A covered individual is disqualified from family and medical leave insurance benefits for one year if the individual is determined by the director to have wilfully made a false statement or misrepresentation regarding a material fact, or wilfully failed to report a material fact, to obtain benefits under this article.

B. If family and medical leave insurance benefits are paid erroneously or as a result of wilful misrepresentation, or if a claim for family and medical leave insurance benefits is rejected after benefits are paid, the commission may seek repayment of benefits from the recipient. The director shall exercise the director's discretion to waive, in whole or in part, the amount of any such payments for good cause. END_STATUTE

START_STATUTE23-382.12. Elective coverage

A. A self-employed person, including a sole proprietor, partner or joint venturer, may elect coverage under this article for an initial period of not less than three years. The self-employed person must file a notice of election in writing with the director, as required by the commission. The election becomes effective on the date the self-employed person files the notice. As a condition of election, the self-employed person must agree to supply any information concerning income that the commission deems necessary.

B. A self-employed person who has elected coverage may withdraw from coverage within thirty days after the end of the three-year period of coverage, or at such other times as the director may prescribe by rule, by filing written notice with the director. The withdrawal shall take effect not sooner than thirty days after the self-employed person files the notice. END_STATUTE

START_STATUTE23-382.13. Family and medical leave insurance program; rules

A. The commission shall establish and administer a family and medical leave insurance program and, on or before January 1, 2030, shall pay family and medical leave insurance benefits as specified in this article.

B. The commission shall establish reasonable procedures and forms for filing claims for benefits under this article and shall specify the supporting documentation that is necessary to support a claim for benefits, including any documentation required from a health care provider for proof of a serious health condition.

C. The commission shall notify the employer within five business days after a claim is filed pursuant to this article.

D. The commission shall use information sharing and integration technology to facilitate the disclosure of relevant information or records, if an individual consents to the disclosure as required under the laws of this state.

E. Information contained in the files and records pertaining to an individual under this article is confidential and not open to public inspection, other than to public employees in performing their official duties. However, the individual or an authorized representative of the individual may review the records or receive specific information from the records on the presentation of the individual's signed authorization.

F. The director shall adopt rules as necessary to implement this article. END_STATUTE

START_STATUTE23-382.14. Federal income tax

If the United States internal revenue service determines that family and medical leave insurance benefits under this article are subject to federal income tax, the commission must advise an individual filing a new claim for family and medical leave insurance benefits, at the time of filing such claim, of all of the following:

1. That the United States internal revenue service has determined that benefits are subject to federal income tax.

2. That requirements exist pertaining to estimated tax payments.

3. That the individual may elect to have federal income tax deducted and withheld from the individual's payment of benefits in the amount specified in the federal internal revenue code.

4. That the individual is allowed to change a previously elected withholding status. END_STATUTE

START_STATUTE23-382.15. Family and medical leave insurance fund

A. The family and medical leave insurance fund is established consisting of contributions received pursuant to section 23-382.04 and any other monies. The commission shall administer the fund. Expenditures from the fund may be used only for the purposes of the family and medical leave insurance program, including conducting the public education campaign pursuant to section 23-382.17. Only the director or the director's designee may authorize expenditures from the fund.

B. Whenever, in the judgment of the commission, there is in the family and medical leave insurance fund an amount of monies of more than the amount deemed by the commission to be sufficient to meet the current expenditures properly payable from the fund, the state treasurer may invest, reinvest, manage, contract, sell or exchange investments acquired with such excess funds in the manner prescribed by the laws of this state on notice from the commission. END_STATUTE

START_STATUTE23-382.16. Annual report

Beginning September 1, 2030 and each September 1 thereafter, the commission shall submit a report to the governor, the president of the senate and the speaker of the house of representatives, and shall provide a copy of the report to the secretary of state, that includes all of the following:

1. The projected and actual program participation by section 23-382.01 category.

2. The gender of the beneficiaries.

3. The premium rates.

4. The family and medical leave insurance fund balances.

5. Outreach efforts.

6. For leave taken under section 23-382.01, paragraph 2, subdivision (b), the family members for whom leave was taken to provide care. END_STATUTE

START_STATUTE23-382.17. Public education

The commission shall conduct a public education campaign to inform employees and employers regarding the availability of family and medical leave insurance benefits. Outreach information shall be available in English, Spanish and other languages spoken by more than five percent of this state's population. The commission shall use monies from the family and medical leave insurance fund established by section 23-382.15 to finance the public education campaign. END_STATUTE

START_STATUTE23-382.18. Sharing technology

The commission is encouraged to use state data collection and technology to the extent possible and to integrate the family and medical leave insurance program with existing state policies. END_STATUTE

Sec. 3. Section 23-405, Arizona Revised Statutes, is amended to read:

START_STATUTE23-405. Duties and powers of the industrial commission of Arizona relative to occupational safety and health; reporting

The commission shall:

1. Administer the provisions of this article through the division of occupational safety and health.

2. Appoint the director of the division of occupational safety and health.

3. Cooperate with the federal government to establish and maintain an occupational safety and health program as effective as the federal occupational safety and health program.

4. Promulgate Adopt standards and regulations as required, pursuant to section 23-410, and promulgate adopt such other rules and regulations as are necessary for the efficient functioning of the division.

5. Have the authority to issue reasonable temporary, experimental and permanent variances pursuant to sections 23-411 and 23-412.

6. Exercise such other powers as are necessary to carry out the duties and requirements of this article.

7. Manage a telephone number that allows employees to report potential violations anonymously in English and other languages if an employer is not in compliance with the law. END_STATUTE

Sec. 4. Heading change

The article heading of title 23, chapter 8, article 1, Arizona Revised Statutes, is changed from "RIGHT TO WORK" to "GENERAL PROVISIONS".

Sec. 5. Repeal

Section 23-1302, Arizona Revised Statutes, is repealed.

Sec. 6. Section 23-1501, Arizona Revised Statutes, is amended to read:

START_STATUTE23-1501. Severability of employment relationships; protection from retaliatory discharges; exclusivity of statutory remedies in employment

A. The public policy of this state is that:

1. The employment relationship is contractual in nature.

2. The employment relationship is severable at the pleasure of either the employee or the employer unless both the employee and the employer have signed a written contract to the contrary setting forth that the employment relationship shall remain in effect for a specified duration of time or otherwise expressly restricting the right of either party to terminate the employment relationship. Both the employee and the employer must sign this written contract, or this written contract must be set forth in the employment handbook or manual or any similar document distributed to the employee, if that document expresses the intent that it is a contract of employment, or this written contract must be set forth in a writing signed by the party to be charged. Partial performance of employment shall not be deemed sufficient to eliminate the requirements set forth in this paragraph. Nothing in This paragraph shall be construed to does not affect the rights of public employees under the Constitution of Arizona and state and local laws of this state or the rights of employees and employers as defined by a collective bargaining agreement.

3. An employee has a claim against an employer for termination of employment only if one or more of the following circumstances have occurred:

(a) The employer has terminated the employment relationship of an employee in breach of an employment contract, as set forth in paragraph 2 of this subsection, in which case the remedies for the breach are limited to the remedies for a breach of contract.

(b) The employer has terminated the employment relationship of an employee in violation of a statute of this state. If the statute provides a remedy to an employee for a violation of the statute, the remedies provided to an employee for a violation of the statute are the exclusive remedies for the violation of the statute or the public policy set forth in or arising out of the statute, including the following:

(i) The civil rights act prescribed in title 41, chapter 9.

(ii) The occupational safety and health act prescribed in chapter 2, article 10 of this title.

(iii) The statutes governing the hours of employment prescribed in chapter 2 of this title.

(iv) The agricultural employment relations act prescribed in chapter 8, article 5 of this title.

(v) The statutes governing disclosure of information by public employees prescribed in title 38, chapter 3, article 9.

All definitions and restrictions contained in the statute also apply to any civil action based on a violation of the public policy arising out of the statute. If the statute does not provide a remedy to an employee for the violation of the statute, the employee shall have the right to bring a tort claim for wrongful termination in violation of the public policy set forth in the statute.

(i) The refusal by the employee to commit an act or omission that would violate the Constitution of Arizona or the statutes of this state.

(ii) The disclosure by the employee in a reasonable manner that the employee has information or a reasonable belief that the employer, or an employee of the employer, has violated, is violating or will violate the Constitution of Arizona or the statutes of this state to either the employer or a representative of the employer who the employee reasonably believes is in a managerial or supervisory position and has the authority to investigate the information provided by the employee and to take action to prevent further violations of the Constitution of Arizona or statutes of this state or an employee of a public body or political subdivision of this state or any agency of a public body or political subdivision.

(iii) The exercise of rights under the workers' compensation statutes prescribed in chapter 6 of this title.

(iv) Service on a jury as protected by section 21-236.

(v) The exercise of voting rights as protected by section 16-1012.

(vi) The exercise of free choice with respect to nonmembership in a labor organization as protected by section 23-1302.

(vii) (vi) Service in the national guard or armed forces as protected by sections 26-167 and 26-168.

(viii) (vii) The exercise of the right to be free from the extortion of fees or gratuities as a condition of employment as protected by section 23-202.

(ix) (viii) The exercise of the right to be free from coercion to purchase goods or supplies from any particular person as a condition of employment as protected by section 23-203.

(x) (ix) The exercise of a victim's right to leave work as provided in sections 8-420 and 13-4439.

B. If the statute provides a remedy to an employee for a violation of the statute, the remedies provided to an employee for a violation of the statute are the exclusive remedies for the violation of the statute or the public policy prescribed in or arising out of the statute. END_STATUTE

Sec. 7. Title 32, chapter 48, Arizona Revised Statutes, is amended by adding article 3, to read:

ARTICLE 3. APPRENTICESHIPS

START_STATUTE32-4831. Occupational regulating authorities; apprenticeships; examinations; rules

A. Notwithstanding any other law, an occupational regulating authority under this title shall establish criteria necessary for granting licenses, certificates or registrations, as appropriate, through apprenticeship programs. The criteria shall provide for the following:

1. An applicant must complete a United States department of labor-APPROVED or a department of economic security-approved apprenticeship program in the professional area in which the applicant seeks licensure, certification or registration, either at a school that is LICENSED by this state or by training with a person who is licensed by this state and who holds the same license, certificate or registration for which the applicant is applying.

2. If the occupational regulating authority requires successful completion of an EXAMINATION for licensure, certification or registration, the applicant must Successfully complete that examination. The passing score on the EXAMINATION may not DISCRIMINATE between an applicant from an apprenticeship program and an applicant from a vocational or trade school.

B. An occupational regulating authority may adopt rules to implement this section. END_STATUTE

Sec. 8. Industrial commission of Arizona; rules; report; applicability; delayed repeal

A. Within thirty days after the governor's regulatory review council's approval of the industrial commission of Arizona's proposed rules, the industrial commission of Arizona shall provide a copy of the rules to the president of the senate, the speaker of the house of representatives, the majority caucus of the senate, the minority caucus of the senate, the majority caucus of the house of representatives, the minority caucus of the house of representatives and the governor and submit a copy to the secretary of state.

B. This section applies to sections 23-207 and 23-405, Arizona Revised Statutes, as amended by this act.

C. This section is repealed from and after December 31, 2027.

Sec. 9. Rulemaking

All rules necessary to implement title 23, chapter 2, article 8.2, Arizona Revised Statutes, as added by this act, shall be adopted within one hundred twenty days after the effective date of this act.

Sec. 10. Conditional enactment

Section 23-1302, Arizona Revised Statutes, as repealed by this act, and section 23-1501, Arizona Revised Statutes, as amended by this act, do not become effective unless the Constitution of Arizona is amended by a vote of the people at the next general election by passage of Senate Concurrent Resolution _____, fifty-seventh legislature, second regular session, relating to the right to work.