On January 1, 2017, the Arizona minimum wage rate began a series of scheduled tiered increases with an initial rate increase from $8.05 per hour to $10.00 per hour.  The Industrial Commission of Arizona recently released a list of frequently asked questions in which they explain that small businesses that (1) make less than $500,000 in gross annual income and (2) are exempt from payment of the federal minimum wage because neither their employees nor the enterprise engage in interstate commerce, are exempt from complying with the Arizona minimum wage requirements.

A lawsuit has been filed in Arizona state court seeking to stop the newly approved minimum wage hike and paid sick leave ballot initiative from taking effect. According to the Arizona Chamber of Commerce, the proposal's lack of a state revenue generator and its inclusion of multiple subjects violate the state's constitution.

Our sick leave toolkit, which includes Frequently Asked Questions (FAQs) and model sick leave policies for jurisdictions with sick leave laws, has been updated.