Arizona employers should prepare now for two recent updates to paid sick leave and the minimum wage increase that will affect them and their Arizona employees beginning July 1, 2017.
First, most employees statewide will begin accruing paid sick leave on July 1, 2017, after the Arizona Supreme Court held on March 14, 2017 that Proposition 206 was constitutional. This law, approved by voters in November 2016, raised the minimum wage to $10/hour and required most employers to provide paid sick leave. The amount of sick leave that can be accrued and used will vary based on the size of the employer.
Second, the Flagstaff City Council voted on March 21, 2017 to amend voter-approved changes to the city's minimum wage. On July 1, 2017, the Flagstaff minimum wage will rise to $10.50/hour. Without this amendment, the minimum wage would have risen to $12/hour. A second raise will take effect on January 1, 2018, pushing the city's minimum wage to $11/hour, with annual increases in the following years.