Assigned to ED &                                                                                                             AS PASSED BY HOUSE

ARIZONA STATE SENATE

Fifty-Third Legislature, Second Regular Session

AMENDED

FACT SHEET FOR S.B. 1159

technical correction; joint school district

(NOW: school employees; contracts; revisions)

Purpose

Allows employee leasing firms that contract with a school district to withhold wages of employees placed at the school district for up to seven business days.

Background

Statute prescribes mandatory employment practices for private and public sector employers. Employers in Arizona must designate at least two fixed days a month, not more than 16 days apart, for payment of employee wages. Employers with a payroll system centralized outside of Arizona may compensate employees once a month. Within five business days from the end of a pay period, employers in Arizona, except school districts, must personally deliver, or deposit in U.S. mail, wages owed to the employee from the most recent pay period. School districts may withhold wages for up to seven business days during their normal two-week payroll processing cycle (A.R.S. § 23‑351).

There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1. Allows employee leasing firms that contract with a school district to withhold wages of employees placed at the school district for up to seven business days during their normal two‑week payroll processing cycle.

2. Defines employee leasing firm as a company that places its contracted, leased and coemployed employees in administrator, certified, classified or extracurricular positions with a school district.

3. Makes technical changes.

4. Becomes effective on the general effective date.

Amendments Adopted by Committee

· Adopted the strike-everything amendment.

Amendments Adopted by Committee of the Whole

· Modifies the definition of employee leasing firm.

Amendments Adopted by the House of Representatives

· Specifies that the provisions relating to the payment of wages refer only to employees of an employee leasing firm who are placed at a school district and not to any other employees who are employed or contracted by the employee leasing firm.

Senate Action House Action

ED                   2/15/18     DPA/SE     6-0-1                ED                   3/05/18     DPA     10-0-0-0

3^rd Read          2/22/18                        28-2-0             3^rd Read          3/27/18                  55-3-2

Prepared by Senate Research

March 28, 2018

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