HB2569 - 522R

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 23-205, to read:

START_STATUTE23-205. Wage disclosure; protection; prohibitions; civil action

A. An employer may not:

1. Require nondisclosure by an employee regarding the employee's wage information as a condition of employment.

2. Require an employee to sign a waiver or other document that denies the employee the right to disclose the employee's wage information.

3. Take any adverse employment action against an employee for disclosing the employee's wages or discussing another employee's wages if the discussion was voluntary.

4. retaliate against an employee for asserting the employee's rights and remedies under this section.

B. This section does not:

1. Create an obligation for an employer or employee to disclose wage information.

2. Allow an employee, without the written consent of the employer, to disclose proprietary information, trade secret information or other information that is otherwise subject to legal privilege or protected by law.

3. Diminish any existing rights under the national labor relations act (49 Stat. 449, 29 United States code sections 151 through 169).

4. Allow an employee to disclose wage information of other employees to a competitor of the employer.

C. An employer that provides an employee handbook to its employees shall include in the employee handbook notice of the employee's rights and remedies under this section.

d. If an employer violates subsection a of this section, the employee may file a civil action against the employer. The court may order reinstatement, recovery of unpaid wages, restoration of lost service credits, if appropriate, and expungement of any related adverse records relating to the employee who was the subject of the violation. END_STATUTE

Sec. 2. Title 23, chapter 2, article 6.1, Arizona Revised Statutes, is amended by adding section 23-342, to read:

START_STATUTE23-342. Equal pay certification; application; criteria; denial; suspension and revocation; audit; confidentiality; report; definitions

A. The commission shall issue an equal pay certificate to a business that has at least forty full‑time employees in this state or the state where the business's primary place of business is located and that submits to the commission an application, a statement signed by the chairperson of the board of directors or chief executive officer of the business and supporting documentation that states:

1. That the business complies with title VII of the civil rights act of 1964 (P.L. 88-352; 78 Stat. 241; 42 United States code 2000e through 2000e-17), the equal pay act of 1963 (P.L. 88-38; 77 Stat. 56; 29 United States code 206) and this article.

2. That the average compensation for female employees is not consistently below the average compensation for male employees within each job category for which an employee is expected to perform work under a contract, taking into consideration length of service, requirements of specific jobs, experience, skill, effort, responsibility, working conditions on the job or other mitigating factors.

3. That the business does not restrict employees of one sex to certain job classifications and makes retention and promotion decisions without regard to sex.

4. That wage and benefit disparities are corrected if identified to ensure compliance with the laws pursuant to paragraph 1 of this subsection.

5. How often wages and benefits are evaluated to ensure compliance with the laws pursuant to paragraph 1 of this subsection.

6. If the business sets compensation and benefits based on a market pricing approach, the state prevailing wage or labor organization requirements, a performance pay system, an internal analysis or an alternative approach. If the business uses an alternative approach, the business shall provide a description of the alternative approach used to set compensation and benefits.

B. The commission may establish an application and application fee by rule for the issuance of equal pay certificates and for equal pay certificate renewal.

C. An equal pay certificate issued pursuant to this section is valid for a period of four years.

D. The commission shall review each business's application, statement and supporting documentation submitted within fifteen days after receipt. If the commission determines that the business is not in compliance with subsection A of this section, the commission may deny the business the equal pay certificate.

E. The commission may suspend or revoke an equal pay certificate if the business fails to make a good-faith effort to comply with or has multiple violations of title VII of the civil rights act of 1964 (P.L. 88-352; 78 Stat. 241; 42 United States code sections 2000e through 2000e-17), the equal pay act of 1963 (P.L. 88-38; 77 Stat. 56; 29 United State code 206) and this article. The commission shall provide notice to the business before suspending or revoking the business's equal pay certificate and allow the business an opportunity to comply with title VII of the civil rights act of 1964 (P.L. 88-352; 78 Stat. 241; 42 United States code sections 2000e through 2000e-17), the equal pay act of 1963 (P.L. 88-38; 77 Stat. 56; 29 United States code 206) and this article.

F. The commission may audit a business to verify compliance with this section. On request, the business shall provide the following information to the commission with respect to the employees expected to perform work under the contract in each job category:

1. The number of male employees.

2. The number of female employees.

3. The average annualized salaries paid to male employees and to female employees, in a manner consistent with the business's compensation system, within each job category.

4. Information on performance payments, benefits or other elements of compensation, in a manner consistent with the business's compensation system.

5. The average length of service for male and female employees in each job category.

6. Other information identified by the business or the commission necessary to determine compliance with the criteria provided in subsection A of this section.

G. All information related to a business's employees that is submitted to the commission related to an equal pay certificate is confidential and is not subject to inspection by the public. The commission's decision to issue, deny, revoke or suspend an equal pay certificate is not confidential.

H. The commission shall submit a report to the governor, the chairperson and ranking minority member of the senate committee on government, or its successor committee, and the chairperson and ranking minority member of the house of representatives committee on government and higher education, or its successor committee, on or before January 31 of every odd-numbered year, beginning January 31, 2019. The report shall include the number of equal pay certificates issued, the number of audits conducted and information regarding the processes used by businesses to ensure compliance with subsection A of this section.

I. For the purposes of this section:

1. "Business" has the same meaning prescribed in section 41-2503.

2. "Contract" has the same meaning prescribed in section 41-2503.

3. "Job category" means the major job categories provided in the most recent employer information report issued by the United States equal employment opportunity commission, or its successor agency. END_STATUTE

Sec. 3. Repeal

Subject to the requirements of article IV, part 1, section 1, Constitution of Arizona, section 23-362, Arizona Revised Statutes, as added by Laws 1997, chapter 51, section 1, is repealed.

Sec. 4. 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 six dollars and seventy-five cents ($6.75) an hour beginning on January 1, 2007.

B. The minimum wage shall be increased on January 1, 2008 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 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 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 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. END_STATUTE

Sec. 5. Title 23, chapter 2, Arizona Revised Statutes, is amended by adding articles 8.1 and 8.2, to read:

ARTICLE 8.1. EARNED SICK TIME LEAVE

START_STATUTE23-371. Definitions

In this article, unless the context otherwise requires:

1. "Abuse" has the same meaning prescribed in section 13‑3623.

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

3. "Domestic violence" has the same meaning prescribed in section 13‑3601.

4. "Earned sick time" means time that is provided by an employer to an employee for the purposes described in section 23-373.

5. "Employee" means any person who is employed by an employer for more than eighty hours in a calendar year. Employee does not include an individual who is employed by this state, a political subdivision of this state or the united states or who is covered by a valid collective bargaining agreement that expressly waives earned sick leave requirements in clear and unambiguous terms.

6. "Employer" includes any corporation, proprietorship, partnership, joint venture, limited liability company, trust, association, individual or other entity acting directly or indirectly in the interest of an employer in relation to an employee, but does not include this state, a political subdivision of this state or the United States.

7. "Family member" means:

(a) A biological, adopted or foster child, a stepchild or legal ward, a child of a domestic partner or a child for whom the employee serves as a temporary guardian.

(b) A biological, foster or adoptive parent or legal guardian of the employee or the employee's spouse or domestic partner, a stepparent of the employee or the employee's spouse or domestic partner or an individual who was a temporary guardian of the employee when the employee was a minor.

(d) A grandparent or a spouse or domestic partner of a grandparent.

(e) A biological, foster or adopted sibling or a spouse or domestic partner of a biological, foster or adopted sibling.

(f) A grandchild.

(g) Any other individual who is related by blood or affinity whose close association with the employee is the equivalent of a family relationship.

8. "Health professional" has the same meaning prescribed in section 32‑3201.

9. "Retaliation" means any threat, discharge, suspension, demotion, reduction of hours by an employer of an employee or other adverse action that an employer takes against an employee and includes any sanctions against a recipient of public benefits or interference with or punishment for participating in an investigation, proceeding or hearing under this article.

10. "Sexual assault" means a violation of section 13-1406.

11. "Stalking" means a violation of section 13-2923. END_STATUTE

START_STATUTE23-372. Accrual of earned sick time

A. An employee of an employer with fewer than ten employees accrues a minimum of one hour of earned sick time for every thirty hours worked. An employee may not accrue more than forty hours of earned sick time in a calendar year, unless the employer selects a higher limit.

B. An employee of an employer with at least ten employees accrues a minimum of one hour of earned sick time for every thirty hours worked. An employee may not accrue more than fifty‑six hours of earned sick time in a calendar year, unless the employer selects a higher limit.

C. For the purposes of subsections A and B of this section, an employer is considered to have at least ten employees if the employer maintains at least ten full-time, part-time or temporary employees who perform work for compensation for some portion of a day in twenty different calendar weeks, whether or not the weeks are consecutive, in either the current or preceding calendar year.

D. An employee who is exempt from overtime requirements under 29 United States Code section 213(a)(1) is assumed to work forty hours in each workweek for the purposes of earned sick time accrual, unless the employee's normal workweek is fewer than forty hours. If the employee's workweek is fewer than forty hours, earned sick time accrues based on the number of hours actually worked.

E. Earned sick time begins to accrue at the commencement of employment or on January 1, 2017, whichever is later.

F. An employee may use accrued earned sick time beginning on the ninetieth calendar day after commencement of employment or January 1, 2017, whichever is later. After the ninetieth calendar day of employment, an employee may use earned sick time as it is accrued.

G. Earned sick time is carried over to the following calendar year, except that an employee may not use more than the maximum time provided by subsections A and B of this section of earned sick time in a calendar year.

H. If an employer provides a paid leave that meets the accrual requirements of this section and that may be used for the same purposes and under the same conditions as prescribed in this section, the employer is not required to provide additional earned sick time.

I. This section does not require financial or other reimbursement to an employee from an employer for accrued earned sick time on the employee's termination, resignation, retirement or other separation from employment.

J. If an employee is transferred to a separate division, entity or location but remains employed by the same employer, the employee is entitled to use all unused earned sick time accrued while working at the prior division, entity or location. If there is a separation from employment and the employee is rehired within twelve months of separation by the same employer, previously accrued earned sick time that had not been used must be reinstated. The employee may use accrued earned sick time and accrue additional earned sick time at the commencement of the reemployment.

K. If a different employer succeeds or replaces an existing employer, all employees of the original employer who remain employed by the successor employer are entitled to use all unused earned sick time accrued while employed by the original employer.

L. This article does not:

1. Discourage or prohibit an employer from the adoption or retention of a paid leave policy that is more generous than the earned sick time leave requirements of this article.

2. Diminish the obligation of an employer to comply with any contract, collective bargaining agreement, employment benefit plan or other agreement that provides more generous paid leave to an employee than required in this article.

3. Diminish the rights of public employees regarding paid sick time or use of paid sick time as otherwise provided by law.

4. Preempt, limit or otherwise affect the applicability of any other law, regulation, requirement, policy or standard that provides for greater accrual or use by employees of sick time, whether paid or unpaid, or that extends other protections to employees. END_STATUTE

START_STATUTE23-373. Use of earned sick time

A. An employee may use earned sick time:

1. for An employee's:

(a) Mental or physical illness, injury or health condition.

(b) Need for medical diagnosis, care or treatment of a mental or physical illness, injury or health condition.

2. for an employee's need to Care for a family member with a mental or physical illness, injury or health condition:

(a) Who needs medical diagnosis, care or treatment of a mental or physical illness, injury or health condition.

(b) Who needs preventive medical care.

3. for Closure of the employee's place of business by order of a public official due to a public health emergency.

4. for An employee's need to care for a child whose school or place of care has been closed by order of a public official due to a public health emergency.

5. If the health authorities having jurisdiction or a health care provider determines that the employee's or the employee's family member's presence in the community would jeopardize the health of others because of the employee's or the employee's family member's exposure to a communicable disease, whether or not the employee or the employee's family member has actually contracted the communicable disease.

6. for Absence necessary due to abuse, domestic violence, sexual assault or stalking if the leave is to do any of the following:

(a) Seek medical attention for the employee or employee's family member to recover from physical or psychological injury or disability that is caused by abuse, domestic violence, sexual assault or stalking.

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

(d) Seek relocation due to the abuse, domestic violence, sexual assault or stalking.

(e) Take legal action, including preparing for or participating in any civil or criminal legal proceeding that is related to or resulting from the abuse, domestic violence, sexual assault or stalking.

B. The employer shall provide earned sick time on the oral or written request of an employee. If possible, the employee shall include in the request the expected duration of the absence.

C. If the use of earned sick time is foreseeable, the employee shall do both of the following:

1. Make a good‑faith effort to provide oral or written notice of the need for earned sick time to the employer in advance of the use of the earned sick time.

2. Make a reasonable effort to schedule the use of earned sick time in a manner that does not unduly disrupt the operations of the employer.

D. If the use of earned sick time is not foreseeable, the employee shall notify the employer orally or in writing as soon as practicable.

E. Earned sick time is compensated at the same hourly rate and with the same benefits, including health care benefits, as the employee normally earns during hours worked, except that the hourly wage may not be less than that prescribed in section 23-363.

F. For earned sick time of more than three consecutive days, an employer may require reasonable documentation that the earned sick time is for a purpose prescribed by subsection A of this section. Reasonable documentation includes:

1. Documentation that is signed by a heath professional that indicates that earned sick time is necessary.

2. A police report that indicates that the employee or employee's family member was a victim of abuse, domestic violence, sexual assault or stalking.

3. A court order, protective order, injunction against harassment or other evidence from a court or prosecuting attorney that affirms that the employee or employee's family member is involved in legal action that is related to abuse, domestic violence, sexual assault or stalking.

4. A signed statement from a domestic violence or sexual assault program or victim services organization affirming that the employee or employee's family member is receiving services related to abuse, domestic violence, sexual assault or stalking.

5. A signed statement from a witness advocate affirming that the employee or employee's family member is involved in legal action or relocation that is related to abuse, domestic violence, sexual assault or stalking.

6. A signed statement from an attorney, member of the clergy or health professional affirming that the employee or employee's family member is a victim of abuse, domestic violence, sexual assault or stalking.

7. An employee's written statement affirming that the employee or employee's family member is a victim of abuse, domestic violence, sexual assault or stalking and that the earned sick time was taken for that purpose. a written statement provided pursuant to this paragraph does not need to be in affidavit format or notarized but shall be legible and make clear the employee's identity and, if applicable, the employee's relationship to the family member.

G. The provision of documentation pursuant to subsection f of this section does not waive or diminish any confidential or privileged communications between a victim of abuse, domestic violence, sexual assault or stalking and the person that provides the documentation.

H. An employer may not require that the documentation explain the nature of the illness or the details of the abuse, domestic violence, sexual assault or stalking. If an employer chooses to require documentation for earned sick time and the employee does not have health insurance, the employer is responsible for paying all of the out‑of‑pocket expenses the employee incurs in obtaining the documentation. If the employee does have health insurance, the employer is responsible for paying any costs the health care provider charges to the employee for providing the specific documentation that the employer requires.

I. An employee shall provide documentation on request to the employer in a timely manner. The employer may not delay the commencement of the earned sick time on the basis that the employer has not received documentation.

J. An employer may not require, as a condition of providing earned sick time, that the employee search for or find a replacement worker to cover the hours during which the employee is on earned sick time.

K. An employee may use earned sick time in either hourly increments or the smallest increments that the employer's payroll system uses to account for absences or use of other time, whichever is smaller. END_STATUTE

START_STATUTE23-374. Protection of rights; retaliation prohibition

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 that is provided under this article.

B. An employer may not engage in retaliation or discrimination against an employee because the employee has exercised, or attempted to exercise, any right that is provided under this article. END_STATUTE

START_STATUTE23-375. Notice and posting

A. An Employer shall give notice to an employee at the commencement of employment or by January 1, 2017, whichever is later, of the following:

1. Employees are entitled to earned sick time, the amount of earned sick time and the terms of its use guaranteed under this article.

2. Retaliation against employees who request or use earned sick time is prohibited.

3. Each employee may file a complaint or bring a civil action if the employer denies earned sick time or the employee is retaliated against for requesting or taking earned sick time.

B. To comply with this section, an Employer shall:

1. Supply each employee with a notice that contains in English, spanish and any language that is the first language spoken by at least ten percent of the employer's workforce the information that is required in subsection A of this section.

2. Display a poster in a conspicuous and accessible place in each establishment where employees are employed that contains in English, spanish and any language that is the first language spoken by at least ten percent of the employer's workforce the information that is required in subsection A of this section.

C. The commission shall create and make available to employers notices and posters that contain in English, spanish and any language deemed appropriate by the commission the information that is required under subsection A of this section for the employers' use in complying with this section. END_STATUTE

START_STATUTE23-376. Employer records

An Employer shall retain records that document hours worked by employees and earned sick time taken by employees for a period of at least three years and shall allow the commission access to these records, with appropriate notice and at a mutually agreeable time, to monitor compliance with the requirements of this Article.END_STATUTE

START_STATUTE23-377. Enforcement; civil penalty

A. The commission shall:

1. Implement and enforce this article and adopt rules for these purposes.

2. develop and implement an outreach and education program to inform employees of their rights under this article that includes the distribution of notices and other written materials to child care and elder care providers, domestic violence shelters, schools, hospitals, community health centers, other health providers and other organizations.

B. An employee or other person may report to the commission any suspected violation of this Article. The commission shall keep confidential the name and other identifying information of the employee or person that reports the violation, except that the commission may disclose this information as authorized by the employee or other person as necessary to enforce this section or for other appropriate purposes.

C. Any person that is injured by a violation of this article may maintain a civil action to enforce this article in a court of competent jurisdiction and may be awarded reasonable attorney fees and costs.

D. Any employer that violates recordkeeping, posting or other requirements that the commission establishes under this article is subject to a civil penalty of at least one hundred dollars but not more than two hundred dollars for each separate violation.

E. Any employer that fails to provide earned sick time as required under this article or engages in retaliation against an employee for the use of earned sick time in violation of this article is subject to a civil penalty of at least one thousand five hundred dollars but not more than two thousand five hundred dollars and shall pay the employee an amount set by the commission or a court that is sufficient to compensate the employee and deter future violations.

F. A civil action to enforce this article may be commenced not later than two years after the date the employee knew or should have known of the violation, or three years in the case of a wilful violation. END_STATUTE

START_STATUTE23-378. Confidentiality

A. An employer may not require disclosure of details that relate to abuse, domestic violence, sexual assault or stalking or the details of an employee's medical condition as a condition of receiving earned sick time leave.

B. An employer may not disclose except to the affected employee or with the permission of the affected employee health information or information that relates to abuse, domestic violence, sexual assault or stalking about an employee or employee's family member, and this information shall be treated as confidential.

C. Any health or safety information possessed by an employer regarding an employee or an employee's family member shall be maintained on a separate form and in a separate file from other personnel information. END_STATUTE

ARTICLE 8.2. FLEXIBLE SCHEDULING

START_STATUTE23-381. Definitions

In this article, unless the context otherwise requires:

1. "Bona fide business reason" means:

(a) The identifiable burden of additional costs to an employer, including the cost of productivity loss, retraining or hiring employees or transferring employees from one facility to another facility.

(b) A significant detrimental effect on the employer's ability to meet organizational needs or customer demand.

(d) A significant detrimental effect on business performance.

(e) Insufficiency of work during the periods an employee proposes to work.

(f) The need to balance competing scheduling requests when it is not possible to grant all scheduling requests without a significant detrimental effect on the employer's ability to meet organizational needs.

(g) Another reason prescribed by the commission in rule.

2. "Career‑related educational or training program" means an educational or training program offered by a career and technical education school, an institution of higher education or another entity that provides education, career and technical education or training that leads to a postsecondary degree.

3. "Caregiver" means an individual who is a significant provider of:

(a) ongoing care or education for a child, including an individual who is responsible for securing ongoing care or education for a child.

(b) Ongoing care for a family member, including an individual who is responsible for securing ongoing care for a family member.

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

5. "Employee" means any person who is employed by an employer for more than eighty hours in a calendar year. Employee does not include an individual employed by this state, a political subdivision of this state or the united states or covered by a valid collective bargaining agreement that expressly governs work scheduling practices in clear and unambiguous terms.

7. "Family member" means:

(a) A biological, adopted or foster child, a stepchild or legal ward, a child of a domestic partner or a child for whom the employee serves as a temporary guardian.

(d) A grandparent or a spouse or domestic partner of a grandparent.

(e) A biological, foster or adopted sibling or a spouse or domestic partner of a biological, foster or adopted sibling.

(f) A grandchild.

(g) Any other individual who is related by blood or affinity whose close association with the employee is the equivalent of a family relationship.

8. "Retaliation" means any threat, discharge, suspension, demotion, reduction of hours by an employer of an employee or other adverse action that an employer takes against an employee and includes any sanctions against a recipient of public benefits or interference with or punishment for participating in an investigation, proceeding or hearing under this article.

9. "split shift" means a schedule of daily hours in which the hours worked are not consecutive. A split shift does not include a schedule in which the total time out for meals is not more than one hour. END_STATUTE

START_STATUTE23-382. Request for change in the terms and conditions of employment

A. An employee may request a change in the terms and conditions of employment related to:

1. The number of hours the employee is required to work or be on call for work.

2. The times when the employee is required to work or be on call for work.

3. The location where the employee is required to work.

4. The amount of notification the employee receives of work schedule assignments.

5. the Minimization of fluctuations in the number of hours the employee is scheduled to work on a daily, weekly or monthly basis.

B. If an employee requests a change in the terms and conditions of employment as prescribed by subsection A of this section, the employer shall engage in a timely, good‑faith interactive process with the employee, including discussing potential schedule changes that would meet the employee's needs. If the employer denies the proposed change in the terms and conditions of employment requested by the employee, the employer shall consider alternatives to the proposed change that may meet the employee's needs. If the employer denies the alternative change, the employer shall state the reason for the denial.

C. If the employer requires clarification of the information provided by the employee in the request to change the terms and conditions of employment, the employer shall explain what additional information is needed and provide the employee reasonable time to produce the information.

D. If an employee requests a change in the terms and conditions of employment as prescribed in subsection A of this section because of a serious health condition of the employee, the employee's responsibilities as a caregiver for a family member or the employee's enrollment in a career‑related educational or training program, or if the employee is a part‑time employee and the request is related to a second job, the employer shall grant the request, unless the employer has a bona fide business reason for denying the request.

E. If an employee requests a change in the terms and conditions of employment as prescribed in subsection A of this section for a reason other than the reasons provided in subsection D of this section, the employer may deny the request for any lawful reason. If the employer denies the request, the employer shall provide the employee with the reason for the denial, including if the reason is a bona fide business reason. END_STATUTE

START_STATUTE23-383. Pay and schedule notice requirements for retail, food service or cleaning employees; definition

A. An employer shall pay an employee as follows:

1. For at least four hours at the employee's regular rate of pay for each day on which the employee reports for work under specific instructions, but is given less than four hours of work, except that if the employee's scheduled hours are less than four hours, the employee shall be paid for the employee's scheduled hours for that day if given less than the scheduled hours of work.

2. For at least one hour at the employee's regular rate of pay for each day the employee is given specific instructions to contact the employer, or wait to be contacted by the employer, less than twenty‑four hours in advance of the start of the potential work shift to determine if the employee must report to work for the shift.

3. For one additional hour at the employee's regular rate of pay for each day during which the employee works a split shift.

B. An employer shall:

1. On or before a new employee's first day of work, inform the employee in writing of the employee's work schedule and the minimum number of expected work hours the employee will be assigned to work per month.

2. Except as provided in subsection C of this section, if the employee's work schedule changes from the work schedule of which the employee was informed pursuant to paragraph 1 of this subsection, provide a new work schedule to the employee at least fourteen days before the first day of the new work schedule. If the expected minimum number of work hours an employee is assigned changes, the employer shall notify the employee of the change of work hours at least fourteen days before the change goes into effect. This paragraph does not prohibit an employer from providing greater advance notice to an employee than is required under this paragraph.

3. Post the work schedule in a conspicuous place in every establishment where an employee is employed. Availability of the work schedule by electronic means accessible by all employees is considered compliance with this paragraph.

C. An employer may change the work schedule as needed, including offering additional hours of work to employees beyond the hours previously scheduled. An employer shall provide one extra hour of pay at the employee's regular rate for each shift that is changed with less than twenty‑four hours' notice, unless the need to schedule the employee is due to the unforeseen unavailability of the employee previously scheduled to work that shift.

D. The notifications required under subsection B of this section shall be in writing. An employer may use additional means of notifying an employee of the employee's work schedule.

E. This section does not:

1. Prevent an employer from allowing an employee to work in place of another employee who has been scheduled to work a particular shift if the change in schedule is mutually agreed on by the employees. An employer is not subject to the requirements of subsection B, paragraph 2 or subsection C of this section for voluntary shift trades.

2. Apply during periods when regular operations of the employer are suspended due to events beyond the employer's control.

F. For the purposes of this section, "employee" means any person who is employed in a retail sales occupation, food preparation and service related occupation or building cleaning occupation. END_STATUTE

START_STATUTE23-384. Protection of rights; retaliation prohibition

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 that is provided under this article.

START_STATUTE23-385. Notice and posting

A. An Employer shall give notice to an employee at the commencement of employment or by January 1, 2017, whichever is later, of the following:

1. Employees are entitled to request a change in the terms and conditions of employment pursuant to Section 23‑382.

2. Retaliation against employees who request a change in the terms and conditions of employment pursuant to Section 23‑382 is prohibited.

3. Each employee may file a complaint or bring a civil action if the employer violates this article or the employee is retaliated against for requesting a change in the terms and conditions of employment.

B. To comply with this section, an Employer shall:

START_STATUTE23-386. Employer records

An Employer shall retain records that document compliance with this article for a period of at least three years and shall allow the commission access to these records, with appropriate notice and at a mutually agreeable time, to monitor compliance with the requirements of this Article. END_STATUTE

START_STATUTE23-387. Enforcement; civil penalties

A. The commission shall:

1. Implement and enforce this article and adopt rules for these purposes.

D. Any employer that violates recordkeeping, posting or other requirements that the commission establishes under this article is subject to a civil penalty of not more than one hundred dollars for each separate violation.

E. Any employer that wilfully violates this article is subject to a civil penalty of not more than one hundred dollars for each violation and shall pay the employee an amount set by the commission or a court that is sufficient to compensate the employee and deter future violations.

F. Any employer that retaliates against an employee for exercising, or attempting to exercise, any right provided by this article is subject to a civil penalty of not more than one thousand one hundred dollars and shall pay the employee an amount set by the commission or a court that is sufficient to compensate the employee and deter future violations.

g. A civil action to enforce this article may be commenced not later than two years after the date the employee knew or should have known of the violation, or three years in the case of a wilful violation. END_STATUTE

Sec. 6. Title 41, chapter 23, article 3, Arizona Revised Statutes, is amended by adding section 41-2535.01, to read:

START_STATUTE41-2535.01. Equal pay certificate required; waiver; voiding of contract; hearing

A. Beginning January 1, 2017, a business that has at least forty full‑time employees in this state or the state where the business's primary place of business is located must have an equal pay certificate issued by the industrial commission of Arizona or an equal pay certificate waiver issued by the procurement officer to be eligible to contract with any purchasing agency in this state for a procurement that exceeds an aggregate amount of five hundred thousand dollars.

B. The procurement officer may issue an equal pay certificate waiver to a business for a specific contract if the procurement officer determines that application of this section would cause undue hardship to the purchasing agency.

C. The procurement officer may void a contract on behalf of this state if the contract is awarded to a business that does not have an equal pay certificate or an equal pay certificate waiver or whose equal pay certificate has been suspended or revoked pursuant to section 23‑342. The procurement officer shall notify all parties to the contract before taking action to void the contract.

D. A business may request a hearing to appeal the procurement officer's action to void the contract pursuant to chapter 6, article 10 of this title. END_STATUTE

Sec. 7. Requirements for enactment; three-fourths vote

Pursuant to article IV, part 1, section 1, Constitution of Arizona, section 23-362, Arizona Revised Statutes, as added by Laws 1997, chapter 51, section 1 and repealed by this act and section 23‑363, 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.