Assigned to COM                                                                                                AS PASSED BY COMMITTEE

 


 

 

 


ARIZONA STATE SENATE

Fifty-Fourth Legislature, First Regular Session

 

AMENDED

FACT SHEET FOR H.B. 2523

 

youth employment

Purpose

            Allows an employer to pay an employee a wage equal to or greater than the federal minimum wage if the employee is under 22 years of age, employed on a casual basis and enrolled full-time as a student. Contains requirements for enactment for initiatives and referendums (Proposition 105).

Background

The Fair Labor Standards Act of 1938 (FLSA) established minimum wage, overtime pay, recordkeeping and youth employment standards for full-time and part-time employees. As of  July 24, 2009, the federal minimum wage is $7.25 per hour (29 U.S.C. 206).

Voter passage of Proposition 206 in 2016 increased the state’s hourly minimum wage in four stages from $10.00 in 2017, to $12.00 by 2020 (A.R.S. § 23-363). The rate thereafter increases each subsequent year by the cost of living, based on the consumer price index. The state minimum wage in 2019 is set at $11.00 an hour.

Current statute requires employment of persons under 16 years of age to be confined to: 1) no more than 40 hours per week when not enrolled in school or school is out of session; 2) no more than 18 hours per week when enrolled in school and school is in session; 3) no more than 8 hours per day when not enrolled in school or on a day school is not in session; and 4) no more than 3 hours per day when enrolled in school on a day school is in session (A.R.S. § 23-233).

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

Provisions

1.      Allows an employer to prevent the curtailment of opportunities for youth employment by paying a wage equal to or greater than the federal minimum wage to an employee who is:

a)      under 22 years of age;

b)      employed on a casual basis; and

c)      enrolled full-time as a student.

2.      Allows, consistent with state and federal law, an employer to prevent the curtailment of opportunities for youth employment by negotiating other terms and conditions of employment with an employee who is:

a)      under 22 years of age;

b)      employed on a casual basis; and

c)      enrolled full-time as a student.

3.      Exempts, from restrictions on employment hours of persons under the age of 16, a person who is:

a)      under 22 years of age;

b)      employed on a casual basis; and

c)      enrolled full-time as a student.

4.      Defines on a casual basis to mean employment that:

a)      does not exceed 20 hours total per week; or

b)      exceeds 20 hours per week if the excessive hours of employment are without regularity or are for irregular or intermittent periods.

5.      Makes technical and conforming changes.

6.      Requires for enactment the affirmative vote of at least three-fourths of the members of each house of the Legislature (Proposition 105).

7.      Becomes effective on the general effective date.

Amendments Adopted by the Rules Committee

·         Adds a Proposition 105 clause.

House Action                                                            Senate Action

RA                 2/11/19      DP     4-3-0-0                  COM               3/28/19      DP     4-3-1

3rd Read         2/28/19                 31-29-0

Prepared by Senate Research

April 8, 2019

MG/gs