HB2124 - 531R

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

Section 1. Subject to the requirements of article IV, part 1, section 1, Constitution of Arizona, section 23-363, Arizona Revised Statutes, is amended to read:

START_STATUTE23-363. Minimum wage

A. Employers shall pay employees no less than the minimum wage, which shall be not less than:

1. $10 Ten dollars per hour on and after January 1, 2017.

2. $10.50 Ten dollars fifty cents per hour on and after January 1, 2018.

3. $11 Eleven dollars per hour on and after January 1, 2019.

4. $12 Twelve dollars per hour 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. United States city average for all items) or its successor index as published by the U.S. United States department of labor, bureau of labor statistics or its successor agency, with the amount of the minimum wage increase rounded to the nearest multiple of five cents.

C. 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 the employer's 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 at least the minimum wage for all hours worked. Compliance with this provision will be is 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.

D. For any new employee or employee seeking a different position with the employee's current employer, the employer may pay a wage that is less than the state minimum wage, but that is at least the amount of the federal minimum wage, if the employer provides a training, apprenticeship or mentorship program to the employee and the employee consents in writing to participate in the training, apprenticeship or mentorship program and receive a wage that is less than the state minimum wage for the duration of the training, apprenticeship or mentorship program or twelve months, whichever is shorter. The employer may notify an employee of this subsection. The employer may not coerce or encourage the employee to agree to a wage that is less than the state minimum wage. END_STATUTE

Sec. 2. Subject to the requirements of article IV, part 1, section 1, Constitution of Arizona, section 23-364, Arizona Revised Statutes, is amended to read:

START_STATUTE23-364. Enforcement; civil penalty; state preemption; definitions

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 An employer or other person shall not 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 that person's rights. Taking adverse action against a person within ninety days of after a person's engaging in the foregoing activities shall raise a presumption that such the discharge or other adverse action was retaliation. , which the presumption may be rebutted by clear and convincing evidence that such the discharge or other adverse action was taken for other permissible reasons.

C. 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 If the commission determines that an employee's name must be disclosed in order to investigate a complaint further, it the commission may so do disclose the employee's name only with the employee's consent.

D. 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 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 provided in this subsection for any categories of small employers whom it that the commission finds would be unreasonably burdened by such requirements. Employers shall permit the commission or a law enforcement officer to inspect and copy payroll or other business records, shall permit them to and interview employees away from the worksite. , and Employers shall not hinder any investigation. Such information provided shall keep 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. 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. Any employer who violates recordkeeping, posting, or other requirements that the commission may establish 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. 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, 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 at least 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 the 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. 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 an 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. The establishment of a uniform minimum wage is a matter of statewide concern. Only 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. Not establish a minimum wage that is more than the minimum wage established under this article. State agencies, counties, cities, towns and other political subdivisions of the 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.

J. For purposes of this section:

1. "Article" means both this article and article 8.1 of this chapter.

2. "Earned paid sick time" has the same meaning prescribed in section 23‑371.

3. "Employer":

(a) For the purposes of minimum wage enforcement, has the same meaning prescribed in section 23-362.

(b) For purposes of earned paid sick time enforcement, has the same meaning prescribed in section 23-371.

4. "Retaliation":

(a) Means the denial of any right guaranteed under this article 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.

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

Sec. 3. Intent

Pursuant to section 41‑1107, Arizona Revised Statutes, it is the intent of the legislature to establish a uniform minimum wage and uniform employee benefits in this state. The establishment of a uniform minimum wage and uniform employee benefits is a matter of statewide concern. Cities, towns and counties should not be able to independently regulate the minimum wage and employee benefits because employers will be subject to a patchwork of varying regulations. Employers must be able to rely on the predictability of the minimum wage and required employee benefits to best treat employees with uniformity and certainty throughout this state.

Sec. 4. Retroactivity

This act applies retroactively to from and after October 31, 2016.

Sec. 5. Requirements for enactment; three-fourths vote

Pursuant to article IV, part 1, section 1, Constitution of Arizona, sections 23‑363 and 23-364, Arizona Revised Statutes, as amended by this act, are effective only on the affirmative vote of at least three-fourths of the members of each house of the legislature.