How to minimize retaliation penalties under Arizona’s Earned Paid Sick Time Law

Arizona employers know by now that the state’s Earned Paid Sick Time Law (EPST) provides for one hour of earned paid sick time for every 30 hours worked. Employers with 15 or more employees must provide a minimum of 40 hours of paid sick leave per year. Employers with fewer than 15 employees must provide a minimum of 24 hours of paid sick leave per year. What most employers do not know, however, is the significant penalties that result if they retaliate against an employee for exercising rights protected under the EPST.

Uphill legal battle

An employer engaging in prohibited retaliation must pay an amount set by the Industrial Commission of Arizona or a court sufficient to compensate the affected employee and deter future violations. The amount cannot be less than $150 for each day the violation continues or until legal judgment is final.

Not only is the retaliation penalty significant, but an employer also has an uphill legal battle if it takes an adverse employment action against an employee within 90 days of the exercise of EPST rights, including taking sick time. In such circumstances, there’s a presumption that the adverse action was retaliation, which may only be rebutted if the employer presents clear and convincing evidence that the adverse action was taken for nonretaliatory reasons.