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Proposition 206 - Minimum Wage and Paid Sick Leave

  • 1.  Proposition 206 - Minimum Wage and Paid Sick Leave

    Posted 09-30-2016 07:34

    ATTENTION CFMA members:

    For many of you, there is a Proposition on the November ballot that, if passed, WILL impact your company.  Proposition 206 is targeted at minimum wage (which likely will not be a huge impact considering the wage levels of our industry); HOWEVER, it also contains a mandatory sick time provision.

    AGC has taken a firm “NO” position on Prop 206.  Below is an email from David Martin which outlines the AGC problems with the Proposition, and attached are two versions of the provisions.

    One version is “clean”;  the other has some commentary by David that you might find interesting reading!!

    One of the issues with the similar proposal in Tempe that David mentions was managing employees that either work entirely outside the jurisdiction (Tempe, or here AZ), yet are employees of the Tempe/AZ based employer, or employees that rotate in and out of the jurisdiction.  Issue being, how this law would impact these employees and how to account and track this benefit is unclear and could be complicated.

    While CFMA has not formally taken a position on this Proposition, it is important that we are well informed voters.  Certainly any public media on this Proposition may not voice the concerns expressed by the AGC.  Hopefully this eblast will not only bring to light the existence of this Proposition (I was not aware of it), but some industry and business perspective to the proposal.

    Happy Reading!!

    David James, CPA, CCIFP
    CFO, FNF Construction, Inc.


    Dear Board Members:

    Rob and I had a discussion earlier about the minimum wage proposal on the ballot this November.  It was disturbing to discover the unions included, almost verbatim, the entire sick leave ordinance from the City of Tempe.  If you remember, we fought it and Tempe ended up dropping it.  Now they want to take the ordinance and make it state law under the cover of minimum wage.  No one is talking about this.  On this basis alone, the minimum wage proposal needs to be killed.

    I have already asked IWS to begin an email attack through We Build Arizona letting voters know that the minimum wage proposal includes paid sick leave.

    A couple of things to note.

                    Mandatory paid sick leave applies to full and part time employees

                    Employees can take sick time to help anybody, not just themselves – seriously – anybody -    

                    anybody the employee deems has a family relationship with them

                    Employees accrue 1 hour of paid sick leave for every 30 hours of work

                    Employees can have up to 40 hours of paid sick leave/24 if you have under 15 employees

                    For a full time employee, 40 hours is reached after 1200 hours worked

    Sick leave travels with the employee even if they are transferred to another state

                    State and federal government employers are exempt

                    Unions are exempt

    Attached is the language from the initiative and a sarcastic mark-up I created to get the readers’ attention on what’s in the initiative.


     David M. Martin, President

    Arizona Chapter

    Associated General Contractors of America 

    Michelle Walker CCIFP, SPHR
    Vice President Finance & Administration
    Specialized Services Co.
    Phoenix AZ
    (602) 997-6164