Remember Proposition 206? The one that requires all businesses with at least one employee to provide paid sick leave effective July 1, 2017?
Another important provision of Prop 206 is an incremental increase in the minimum wage for hourly employees. As a result, the minimum wage in Arizona increased from $8.05 to $10.00 on January 1, 2017, and is scheduled to increase again to $10.50 on January 1, 2018.
What does that mean for your business?
As of 2016, 58.7% of the workers in the United States were paid hourly. If all or some of your employees fall in this group and are currently paid minimum wage, they get an automatic raise for the New Year. If this is the case, you may have some work to do for 2018.
To stay in compliance and make a smooth transition, be sure to do the following:
· Include the wage increase in your 2018 budget
· Communicate with your payroll manager and employees which employees will receive the increase
· Update your employee records to reflect the new wage
· Revise your policy handbook to reflect the changes
· Don’t forget about the paid sick leave in your updates (if you haven’t added that already)
Do you want to be absolutely sure you’re in compliance with the new regulations? Contact Structure for Success today to schedule your Year-End HR Tune-Up.
We’ll provide checklists of what you have to do, or, better yet, we’ll do it for you. Structure for Success offers several protection plans depending on the services and number of documents you need. Onboarding materials, employee forms and handouts, policy manuals, and templates customized for your business are just a sample of what we can provide.
Don’t let the ongoing Prop 206 changes catch you by surprise. Schedule your appointment today.