employment; labor relations; occupations; leave

SB1465 - 572R - I Ver

REFERENCE TITLE:
employment; labor relations; occupations; leave

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SB 1465

Introduced by

Senators
Kuby: Bravo, Diaz, Epstein, Miranda, Ortiz, Sundareshan;� Representatives De
Los Santos, Liguori, Villegas

AN
ACT

amending title 23, chapter 2, article 1,
Arizona revised statutes, by adding section 23-207; amending title 23,
chapter 2, arizona revised statutes, by adding article 8.2; amending section 23-405,
arizona revised statutes; repealing section 23-1302, arizona revised
statutes; amending section 23-1501, arizona revised statutes; amending
title 32, chapter 48, arizona revised statutes, by adding article 3; relating
to employment.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Title 23, chapter 2, article 1,
Arizona Revised Statutes, is amended by adding section 23-207, to read:

START_STATUTE
23-207.

Heat illness prevention; private right of action; rules;
definitions

A. The industrial commission of
Arizona shall adopt rules establishing standards for every industry that may be
affected by heat illness as provided in this section that are designed to
protect employees from heat illness while engaged in indoor and outdoor
work. These standards apply to all indoor and outdoor places of
employment and to all employers that fall within the jurisdiction of the
division of occupational safety and health.� The commission shall create
specific standards for the following industries:

1. Agriculture.

2. Construction.

3. Landscaping.

4. Oil and gas extraction.

5. Airport workers.

6. Mail and package delivery workers.

7. Transportation or delivery of
agricultural products, construction materials or other heavy materials,
including furniture, lumber, freight, cargo, cabinets and industrial or
commercial materials, except for employment that consists of operating an
air-conditioned vehicle and that does not include loading or unloading.

B. Standards adopted pursuant to this
section must require each employer to provide potable water and access to
facilities as follows:

1. An employer shall provide
employees, at no cost to the employees, access to drinking water in quantities
sufficient to maintain adequate levels of hydration at varying levels of heat,
using a baseline of one cup of cool water per fifteen to twenty minutes, as
well as electrolytes if employees have been working for over an hour in
conditions at or above ninety degrees fahrenheit.

2. The
water and access to a restroom must be located as close as practicable to the
areas where employees are working and may not be farther than four hundred feet
walking distance from an employee's work area.

3. Employers may begin the shift with
smaller quantities of water that are replenished during the shift as needed.

4. The employer shall provide water
that is suitably cool and potable and shall provide the water to employees free
of charge.

5. The employer shall encourage the
frequent drinking of water as described in subsection H, paragraph 3,
subdivision (
c
).

C. Standards
adopted pursuant to this section shall require each employer to provide access
to shade or a climate-controlled environment as follows:

1. When
the temperature in the work area is more than ninety degrees Fahrenheit, the
employer shall provide and maintain at all times while employees are present
one or more areas with shade or a climate-controlled environment that are
either open to the air or provided with ventilation or cooling. The
amount of shade or climate-controlled environment provided shall be at least
enough to accommodate the number of employees on rest periods so that they can
sit in a normal posture fully in the shade or climate-controlled environment
without having to be in physical contact with each other. The shade
or climate-controlled environment shall be located as close as practicable to
the areas where employees are working.� Subject to the same specifications, the
amount of shade or climate-controlled environment present during meal periods
shall be at least enough to accommodate the number of employees on the meal
period who remain on-site.

2. When the temperature in the work
area is not more than ninety degrees Fahrenheit during daylight hours,
employers shall provide either shade or a climate-controlled environment
in accordance with paragraph 1 of this subsection or provide access to shade or
a climate-controlled environment on an employee's request.

3. An employer shall allow and
encourage employees to take a cool-down rest period in the shade or
climate-controlled environment for preventative measures.� An employer shall
comply with all of the following when an employee takes a preventative
cool-down rest period pursuant to this paragraph:

(
a
) The
employer shall ask if the employee is experiencing symptoms of heat illness.

(
b
) The
employer shall encourage the employee to remain in the shade or
climate-controlled environment.

(
c
) The
employer may not order the employee back to work until any signs or symptoms of
heat illness have abated, but not less than five minutes in addition to the
time needed to access the shade or climate-controlled environment.

4. When the temperature is more than
ninety degrees Fahrenheit in a vehicle that is idle or not producing air
conditioning.

5. When the employee is working in an
attic, the employee must have access to cool air and sufficient breaks.

D. Standards adopted pursuant to this
section shall require each employer to implement high-heat procedures
that do all of the following when the temperature equals or exceeds ninety
degrees Fahrenheit:

1. Ensure that employees are able to
contact their supervisor by any method of effective communication when
necessary.

2. Require an employer to effectively
observe and monitor employees for signs or symptoms of heat illness by
implementing two or more of the following policies:

(
a
) A
requirement that there be at least one supervisor or supervisor's designee
responsible for observing and monitoring each group of twenty or fewer
employees.

(
b
) A mandatory
buddy system.

(
c
) Communication
with an employee, such as by radio or cell phone, multiple times per shift.

(
d
) Other
effective means of observation.

3. Designate one or more employees on
each worksite who are authorized to call for emergency medical services, and if
no designated employees are available, allow other employees to call on their
behalf.

4. Require reminding employees
throughout the work shift to stay properly hydrated.

5. For employees employed in
agriculture, require preshift meetings before the beginning of each work shift
to review the high-heat procedures, encourage employees to drink plenty
of water and remind employees of their right to take a cool-down rest period
when necessary.

E. Standards adopted pursuant to this
section shall require each employer to provide rest periods that range in
duration from fifteen to forty-five minutes per hour, depending on the
workplace temperature and worker activity level.

F. Standards adopted pursuant to this
section shall require each employer to implement effective emergency response
procedures pursuant to which the employer shall both:

1. Ensure that effective
communication by voice, observation or electronic means is maintained so that
employees at the worksite can contact a supervisor or emergency medical
services when necessary. An electronic device, such as a cell phone
or text messaging device, may be used for this purpose only if reception in the
area is reliable.

2. Respond to signs and symptoms of
possible heat illness if a supervisor observes, or any employee reports, any
signs or symptoms of heat illness in any employee.� The supervisor shall take
immediate action commensurate with the severity of the illness, including first
aid measures and contacting emergency medical services. If the
employee exhibits signs or symptoms severe enough to indicate heat illness, the
employee may not be sent home without being offered on-site first aid or
provided with emergency medical services.

G. Standards adopted pursuant to this
section shall require that all employees who begin employment in high-heat
environments, or who will be working in hotter conditions than usual, such as
during a heat wave, be gradually acclimatized to the work over a period of
between seven and fourteen days.

H. Standards adopted pursuant to this
section shall require each employer to provide effective training to employees
and supervisors that meets all of the following requirements:

1. Is in a language that the employee
or supervisor understands.

2. Is provided to each supervisor
before supervising employees performing work that may reasonably result in
exposure to the risk of heat illness and to each nonsupervisory employee before
the employee begins work that may reasonably result in exposure to the risk of
heat illness.

3. Covers all of the following
topics:

(
a
) The
environmental risk factors for heat illness and personal risk factors for heat
illness, including medical conditions, water consumption, alcohol use, the use
of medications that affect the body's response to the heat and the burden caused
by personal protective equipment.

(
b
) The
employer's procedures for complying with the standards adopted pursuant to this
section, including the employer's responsibility to provide water, shade or a
climate-controlled environment, cool-down rest periods and access to
first aid, as well as the employee's right to exercise rights under these
standards without retaliation.

(
c
) The
importance of frequent consumption of water, up to four cups per hour, when the
work environment is above ninety degrees Fahrenheit and employees are likely
sweating more than usual.

(
d
) The
importance of acclimatization.

(
e
) The
different types of heat illness, the common signs and symptoms of heat illness
and appropriate first aid and emergency responses to the different types of
heat illness.

(
f
) The
importance of immediately reporting to the employer, directly or through the
employee's supervisor, symptoms or signs of heat illness in themselves or in
coworkers.

(
g
) The
employer's procedures for responding to signs or symptoms of possible heat
illness, including how emergency medical services will be contacted and
provided should they become necessary.

4. For supervisors, in addition to
the requirements of paragraph 3 of this subsection, covers the procedures the
supervisor is required to follow:

(
a
) To
implement the applicable standards adopted pursuant to this section.

(
b
) When an
employee exhibits signs or reports symptoms consistent with possible heat
illness, including emergency response procedures.

I. In adopting standards pursuant to
this section, the industrial commission of Arizona shall consider criteria
relating to recommended standards for occupational exposure to heat and hot
environments established by a national institute for occupational safety and
health.

J. The
rules adopted by the industrial commission of Arizona pursuant to this section
shall include the following:

1. Building
requirements for interior work environments that include air circulation and
insulation standards.

2. Educational and training
requirements for employees related to heat illness identification, prevention
and preparation.

3. Personal protective equipment for
employees in temperatures of more than ninety degrees fahrenheit that includes
cooling towels and hats for sun protection.

4. Enforcement provisions.

K. An employer may not discharge or
discriminate in any other manner against employees for exercising their rights
under this section.

L. An employee may bring a private
right of action for a violation of this section in a court of competent
jurisdiction to do either or both of the following:

1. Enjoin the violation.

2. Recover actual monetary losses
from the violation or receive $500 in damages for each violation, whichever is
greater.

M. For the purposes of this section:

1. "Acclimatization" means
the gradual, temporary adaptation of the body to work in the heat when a person
is exposed to heat.

2. "Buddy system" means a
procedure in which two individuals, the buddies, operate together as a single
unit so that they are able to MONITOR and help each other.

3. "Environmental risk factors
for heat illness" means working conditions that create the possibility
that heat illness could occur, including air temperature, relative humidity,
radiant heat from the sun and other sources, conductive heat sources such as
the ground, air movement, workload severity and duration, protective clothing
and personal protective equipment worn by employees.

4. "Heat illness":

(
a
) Means a
serious medical condition resulting from the body's inability to cope with a
particular heat load.

(
b
) Includes
heat cramps, heat exhaustion, heat syncope and heat stroke.

5. "Heat wave" means any
day in which the predicted high temperature for the day will be at least ninety
degrees Fahrenheit and at least ten degrees Fahrenheit higher than the average
high daily temperature in the preceding five days.

6. "Landscaping":

(
a
) Means
providing landscape care and maintenance services, installing trees, shrubs,
plants, lawns or gardens or providing these services in conjunction with the
design of landscape plans.

(
b
) Includes
constructing, installing or maintaining walkways, retaining walls, decks,
fences, ponds and similar structures.

7. "Oil and gas extraction"
means operating or developing oil and gas field properties, exploring for crude
petroleum or natural gas, mining or extracting of oil or gas or recovering
liquid hydrocarbons from oil or gas field gases.

8. "Personal risk factors for
heat illness" means factors such as an individual's age, degree of
acclimatization, health, water consumption and use of prescription medications
that affect the body's water retention or other physiological responses to
heat.

9. "Potable water" has the
same meaning prescribed in 29 Code of Federal Regulations section 1910.141(
a
)(2).

10. "Rest period" means a
cool-down period made available to an employee to prevent heat illness.

11. "Shade" means the
complete blockage of direct sunlight that allows the body to
cool. Shade may be provided by any artificial means that does not
expose employees to unsafe or unhealthy conditions and does not deter or discourage
access or use.
END_STATUTE

Sec. 2. Title 23, chapter 2, Arizona Revised
Statutes, is amended by adding article 8.2, to read:

ARTICLE 8.2. FAMILY AND
MEDICAL LEAVE

START_STATUTE
23-382.

Definitions

In this article, unless the context otherwise
requires:

1. "Abuse" has the same
meaning prescribed in section 23-371.

2. "Application year" means
the twelve-month period beginning on the first day of the calendar week
in which an individual files an application for family and medical leave
insurance benefits.

3. "Average weekly wage"
means one-thirteenth of the covered individual's total wages for covered work
paid during the quarter of the person's base period in which such total wages
were highest.

4. "Base period" has the
same meaning prescribed in section 23-605.

5. "Commission" means the
industrial commission of Arizona.

6. "Covered individual"
means any person who meets all of the following requirements:

(
a
) Meets one
of the following:

(
i
) Has been
paid wages for covered work during the individual's base period equal to at
least one and one-half times the wages paid to the individual in the
calendar quarter of the individual's base period in which the wages were
highest, and the individual has been paid wages for covered work in one
calendar quarter of the individual's base period equal to an amount that is
equal to at least three hundred ninety times the minimum wage prescribed by
section 23-363 that is in effect when the individual files a claim for
benefits.

(
ii
) Has been
paid wages for covered work during at least two quarters of the individual's
base period and the amount of the wages paid in one quarter would be sufficient
to qualify the individual for the maximum weekly benefit amount payable under
this article and the total of the individual's base-period wages is equal to or
greater than the taxable limit for unemployment insurance as specified in
section 23-622, subsection B, paragraph 1.

(
iii
) Is self-employed,
elects coverage and meets the requirements of section 23-382.12.

(
b
) Meets the
administrative requirements outlined in this article and in rules adopted
pursuant to this article.

(
c
) Submits an
application.

7. "Director" means the
director of the commission.

8. "Domestic violence" has
the same meaning prescribed in section 23-371.

9. "Employee" has the same
meaning prescribed in section 23-362.

10. "Employer" has the same
meaning prescribed in section 23-371, except that an employer also includes
this state.

11. "Family and medical leave
insurance benefits" means the benefits provided under this article.

12. "Family member" has the
same meaning prescribed in section 23-371.

13. "Health care provider"
means any person licensed under federal law or the laws of this state to
provide medical or emergency services, including doctors, nurses and emergency
room personnel, or certified midwives.

14. "Qualifying exigency
leave" means leave based on a need arising out of a covered individual's
family member's active duty service or notice of an impending call or order to
active duty in the Armed Forces, including any of the following:

(
a
) Providing
for the care or other needs of the military member's child or other family
member.

(
b
) Making
financial or legal arrangements for the military member.

(
c
) Attending
counseling.

(
d
) Attending
military events or ceremonies.

(
e
) Spending
time with the military member during a rest and recuperation leave or following
return from deployment.

(
f
) Making
arrangements following the death of the military member.

15. "Retaliatory personnel
action":

(
a
) Means
denial of any right guaranteed under this article, including either of the
following:

(
i
) Any threat,
discharge, suspension, demotion or reduction of hours or any other adverse
action against an employee for the exercise of any right guaranteed in this
article.

(
ii
) Reporting
or threatening to report an employee's suspected citizenship or immigration
status or the suspected citizenship or immigration status of a family member of
the employee to a federal, state or local agency.

(
b
) Includes
interference with or punishment for in any manner participating in or assisting
an investigation, proceeding or hearing under this article.

16. "Safe leave" means,
notwithstanding section 13-4439, absence necessary due to domestic violence,
sexual violence, abuse or stalking, if the leave is to allow the covered
individual to obtain for the covered individual or the covered individual's
family member any of the following:

(
a
) Medical
attention needed to recover from physical or psychological injury or disability
caused by domestic violence, sexual violence, abuse or stalking.

(
b
) Services
from a domestic violence or sexual violence program or victim services
organization.

(
c
) Psychological
or other counseling.

(
d
) Relocation
or taking steps to secure an existing home due to the domestic violence, sexual
violence, abuse or stalking.

(
e
) Legal
services, including preparing for or participating in any civil or criminal
legal proceeding related to or resulting from the domestic violence, sexual
violence, abuse or stalking.

17. "Serious health
condition" has the same meaning prescribed in section 101 of the family
and medical leave act of 1993 (P.L. 103�3; 107 Stat. 6).

18. "Sexual violence" has
the same meaning prescribed in section 23-371.

19. "Stalking" has the same
meaning prescribed in section 23-371.

20. "State average weekly
wage" means the average monthly wage, as calculated under section 23-1041,
subsection E, divided by 4.5.
END_STATUTE

START_STATUTE
23-382.01.

Eligibility for benefits

Beginning January 1, 2030, family and medical
leave insurance benefits are payable to an individual who both:

1. Meets the definition of covered
individual under this article.

2. Meets one of the following
requirements:

(
a
) Because of
birth, adoption or placement through foster care, is caring for a new child
during the first year after the birth, adoption or placement of that child.

(
b
) Is caring
for a family member with a serious health condition.

(
c
) Is pregnant
or recovering from childbirth or has an illness, injury, impairment or physical
or mental condition that involves inpatient care in a hospital, hospice or
residential medical care facility or continuing treatment by a health care
provider and that makes the covered individual unable to perform the functions
of the employee's position.

(
d
) Qualifies
for qualifying exigency leave arising out of the fact that the family member of
the covered individual is on active duty or has been notified of an impending
call or order to active duty in the Armed Forces.

(
e
) Is in need
of safe leave.
END_STATUTE

START_STATUTE
23-382.02.

Duration of benefits

A. The maximum number of weeks during
which family and medical leave insurance benefits are payable to a covered
individual in an application year is as follows:

1. Under section 23-382.01,
paragraph 2, subdivision (
c
), twenty-six weeks.

2. Under section 23-382.01,
paragraph 2, subdivision (
a
), (
b
),
(
d
) or (
e
), twenty-four
weeks.

B. A covered individual is eligible
for twenty-six weeks of leave under subsection A, paragraph 1 of this
section and twenty-four weeks of leave under subsection A, paragraph 2 of
this section in an application year.

C. In addition to the family and
medical leave insurance benefits that are prescribed in subsection A of this
section, an employer:

1. May provide additional leave
benefits for a covered individual.

2. Shall provide a minimum of twelve
weeks of leave to a covered individual.

D. The first payment of benefits must
be made to a covered individual within two weeks after the claim is filed and
subsequent payments must be made every two weeks thereafter.
END_STATUTE

START_STATUTE
23-382.03.

Amount of benefits

A. The weekly
amount of family and medical leave insurance benefits is determined as follows:

1. If the covered individual's
average weekly wage is equal to or less than one-half of the state
average weekly wage, the benefit amount is equal to ninety percent of the
covered individual's average weekly wage.

2. If the covered individual's
average weekly wage is greater than one-half of the state average weekly
wage, the benefit amount is the sum of both of the following:

(
a
) Ninety
percent of one-half of the state average weekly wage.

(
b
) Fifty
percent of the difference of the covered individual's average weekly wage and
one-half of the state average weekly wage.

B. Beginning January 1, 2030, the
maximum weekly benefit amount calculated pursuant to subsection A of this
section is not more than $1,000 per week, except that annually, not later than
October 1 of each year thereafter, the commission shall adjust the maximum
weekly benefit amount to be ninety percent of the state average weekly wage and
the adjusted maximum weekly benefit amount shall take effect on January 1 of
the year following the adjustment.

C. The minimum weekly benefit may not
be less than $100 per week, except that if the covered individual's average
weekly wage is less than $100 per week, the weekly benefit shall be the covered
individual's full wage.

D. Family and medical leave insurance
benefits are not payable for less than eight hours of family and medical leave
taken in one work week.�
END_STATUTE

START_STATUTE
23-382.04.

Contributions

A. Payroll contributions are
authorized to finance the payment of benefits under the family and medical
leave insurance program.

B. Beginning January 1, 2029, Payroll
contributions shall be paid by employers and employees in the ratio of one-to-one
in an amount to be determined by the commission.

C. Not later than October 1 of each
year, the commission shall fix the contribution rate for the coming calendar
year as follows:

1. For calendar years 2029 and 2030,
the commission shall do so based on sound actuarial principles.

2. For calendar year 2029 and each
calendar year thereafter, the commission shall first certify and publish all of
the following information:

(
a
) The total
amount of family and medical leave insurance benefits paid by the commission
during the previous fiscal year.

(
b
) The total
amount remaining in the family and medical leave insurance fund established by
section 23-382.15 at the close of the fiscal year.

(
c
) The total
amount equal to one hundred forty percent of the previous fiscal year's
expenditures for family and medical leave insurance benefits paid and for the
administration of the family and medical leave insurance program.

(
d
) The amount
by which the total amount remaining in the family and medical leave insurance
fund established by section 23-382.15 at the close of the previous fiscal
year is less than or greater than one hundred forty percent of the previous
fiscal year's expenditures for family and medical leave insurance benefits paid
and for the administration of the family and medical leave insurance program.

(
e
) The amount
by which the contribution rate shall be adjusted to ensure that the family and
medical leave insurance fund established by section 23-382.15 maintains
or achieves an annualized amount of not less than one hundred percent of the
previous fiscal year's expenditures for family and medical leave insurance
benefits paid and for the administration of the family and medical leave
insurance program.

The contribution rate
adjustment, if any, made as the result of the commission's certification and report
under this subsection shall supersede the rate previously set forth and shall
become effective on January 1 of the following calendar year.

D. A self-employed individual who
elects coverage under section 23-382.12 is responsible for the employee
share of contributions set forth in subsection B of this section on that
individual's income from self-employment.
END_STATUTE

START_STATUTE
23-382.05.

Reduced leave schedule

A. A covered individual is entitled,
at the option of the covered individual, to take paid family and medical leave
on an intermittent or reduced leave schedule in which all of the leave
authorized under this article is not taken sequentially. Family and
medical leave insurance benefits for intermittent or reduced leave schedules
shall be prorated.

B. The covered individual shall
provide the employer with prior notice of the schedule on which the covered
individual will be taking the leave, to the extent practicable.� Paid family
and medical leave taken under this section may not result in a reduction of the
total amount of leave to which an employee is entitled beyond the amount of
leave actually taken.

C. This section does not entitle a
covered individual to more leave than required under section 23-382.02.
END_STATUTE

START_STATUTE
23-382.06.

Leave and employment protection; enforcement

A. Any covered individual who
exercises the covered individual's right to family and medical leave insurance
benefits is entitled, on the expiration of that leave, to be restored by the
employer to the position held by the covered individual when the leave
commenced, or to a position with equivalent seniority, status, employment
benefits, pay and other terms and conditions of employment, including fringe
benefits and service credits, that the covered individual had been entitled to
at the commencement of leave.

B. During any leave taken pursuant to
this article, the employer shall maintain any health care benefits the covered
individual had before taking such leave for the duration of the leave as if the
covered individual had continued in employment continuously from the date the
covered individual commenced the leave until the date the family and medical
leave insurance benefits terminate, if the covered individual continues to pay
the covered individual's share of the cost of health benefits as required
before the commencement of the leave.

C. This section and section 23-382.07
shall be enforced as follows:

1. On receipt of a written complaint
from an employee, the director shall investigate whether the employer has
violated this article.

2. If the director determines that an
employer has violated this article, the director shall do any of the following:

(
a
) With the
written consent of the employee, attempt to informally resolve any pertinent
issue through mediation.

(
b
) With the
written consent of the employee, request the attorney general to bring an
action on behalf of the employee in accordance with this article.

(
c
) Bring an
action on behalf of an employee in the county where the violation allegedly
occurred.

3. An employee may bring a civil
action in a court of competent jurisdiction against the employee's employer for
a violation of this article regardless of whether the employee first filed a
complaint with the director.

4. An action brought under paragraph
2 or 3 of this subsection shall be filed within three years after the
occurrence of the act on which the action is based.

5. If a court finds that an employer
violated this article in an action brought under paragraph 2 or 3 of this
subsection, the court may award the employee all of the following:

(
a
) The full
monetary value of any unpaid family and medical leave that the employee was
unlawfully denied.� Unpaid family and medical leave awarded pursuant to this
subdivision shall be paid to the employee without cost to the employee.

(
b
) Actual
economic damages suffered by the employee as a result of the employer's
violation of this article.

(
c
) An
additional amount of not more than three times the damages awarded under
subdivision (
b
) of this paragraph.

(
d
) Reasonable
attorney fees and other costs.

(
e
) Any other
relief that the court deems appropriate, including reinstatement of employment,
back pay and injunctive relief.

6. If the action was brought by the
attorney general under paragraph 2, subdivision (
b
) of
this subsection, the court shall order the employer to pay at least $1,000 per
violation to this state.
END_STATUTE

START_STATUTE
23-382.07.

Retaliatory personnel actions prohibited

A. It is unlawful for an employer or
any other person to interfere with, restrain or deny the exercise of, or the
attempt to exercise, any right protected under this article.

B. An employer, temporary help
company, employment agency, employee organization or other person may not take
retaliatory personnel action or otherwise discriminate against a person because
the person exercised rights protected under this article.� These rights include
all of the following:

1. Requesting, filing for, applying
for or using benefits or leave provided for under this article.

2. Communicating to the employer or
any other person or entity an intent to file a claim, a complaint with the
commission or courts or an appeal.

3. Testifying, planning to testify or
assisting in any investigation, hearing or proceeding under this article at any
time, including during the waiting period and the period in which the person
receives family and medical leave insurance benefits under this article.

4. Informing any person about any
employer's alleged violation of this article.

5. Informing any person of a person's
rights under this article.

C. It is unlawful for an employer's
absence control policy to count paid family and medical leave taken under this
article as an absence that may lead to or result in discipline, discharge,
demotion, suspension or any other adverse action.

D. The protections of this section
apply to any person who mistakenly but in good faith alleges violations of this
article.

E. There is a rebuttable presumption
that an employer has violated this article if the employer takes adverse action
against an employee within ninety days after the employee does any of the
following:

1. Files a complaint with the
director alleging a violation of this article or brings a civil action under
this article.

2. Informs a person about the
employer's alleged violation of this article.

3. Cooperates with the director or
another person in the investigation or prosecution of the employer's alleged
violation of this article.

4. Opposes a policy or practice of
the employer or an act of the employer that is prohibited under this article.

5. Takes or requests leave or
benefits under this article.

F. An employer may overcome the
rebuttable presumption established pursuant to subsection E of this section
with clear and convincing evidence of all of the following:

1. That the employer's action was not
retaliation against the employee.

2. That the employer had sufficient
independent justification for taking the action.

3. That the employer would have in
fact taken the action in the same manner and at the same time the action was
taken, regardless of the employee's exercise of protected rights under this
article.
END_STATUTE

START_STATUTE
23-382.08.

Coordination of benefits

A. Leave
taken with wage replacement under this article that also qualifies as leave
under the family and medical leave act of 1993 (P.L. 103�3; 107 Stat. 6;
29 United States Code sections 2601 through 2654) shall run concurrently with
leave taken under the family and medical leave act of 1993 (P.L. 103�3; 107
Stat. 6; 29 United States Code sections 2601 through 2654).

B. A covered individual is not
required to use any accrued paid sick, vacation or annual leave, including sick
leave under section 23-373, or other paid time off to which the covered
individual is entitled before or while receiving family and medical leave
insurance benefits, provided, however, that if the employer and the covered
individual agree, a covered individual may elect to use accrued paid sick,
vacation or annual leave or other paid time off to supplement family and
medical leave insurance benefits under this article in order to receive full
pay while on leave.

C. An employer may require that
payment made pursuant to this article be made concurrently or otherwise
coordinated with payment made or leave allowed under the terms of disability or
family care leave under a collective bargaining agreement or employer
policy. The employer must give employees written notice of this
requirement.

D. This article does not diminish an
employer's obligation to comply with any of the following that provide more
generous leave:

1. A collective bargaining agreement.

2. Employer policy.

3. Any other law.

E. An individual's right to leave
under this article may not be diminished by a collective bargaining agreement
entered into or renewed, or an employer policy adopted or retained, after the
effective date of this article.� Any agreement by an individual to waive the
individual's rights under this article is void as against public policy.
END_STATUTE

START_STATUTE
23-382.09.

Notice; civil penalty

A. Each employer shall provide
written notice that complies with this section:

1. To each employee on hiring and
annually thereafter.

2. To an employee when the employee
requests leave under this article.

3. To an employee when the employer
acquires knowledge that the employee's leave may be for a qualifying reason
under section 23-382.01.

B. Any noticed provided under this
section shall include all of the following:

1. The employee's right to family and
medical leave insurance benefits under this article and the terms under which
it may be used.

2. The amount of family and medical
leave insurance benefits.

3. The procedure for filing a claim
for benefits.

4. The right to job protection and
benefits continuation under section 23-382.06.

5. That discrimination and
retaliatory personnel actions against a person for requesting, applying for or
using family and medical leave insurance benefits is prohibited under section
23-382.07.

6. That the employee has a right to
file a complaint for violations of this article.

7. The contact information for the
commission where questions about rights and responsibilities under this article
can be answered.

C. An employer shall also display and
maintain a poster in a conspicuous place accessible to employees at the
employer's place of business that contains the information required by this
section in English, Spanish and any language that is the first language spoken
by at least five percent of the employer's workforce, provided that such notice
has been provided by the commission. The director may adopt rules to
establish additional requirements concerning the means by which employers shall
provide such notice.

D. In any case in which the necessity
for leave under this article is foreseeable, the employee shall provide the
employer with at least thirty days' notice before the date the leave is to
begin, or, if such notice is not possible, the employee shall provide such
notice as is practicable.� In any case for which the necessity for leave under
this article is not foreseeable, the employee shall provide such notice as is
practicable.

E. The amount of family and medical
leave available to an employee and the amount of family and medical leave taken
by an employee to date in the year shall be recorded in, or on an attachment
to, the employee's regular paycheck.

F. Any employer that violates the
recordkeeping, posting or other requirements that the commission establishes
under this section is subject to a civil penalty of at least $250 for a first
violation, and at least $1,000 for each subsequent or wilful violation and, if
the commission or court determines appropriate, may be subject to special
monitoring and inspections.
END_STATUTE

START_STATUTE
23-382.10.

Benefits appeals

A. The
director shall establish a system for appeals in the case of a denial of family
and medical leave insurance benefits.

B. Judicial review of any decision
with respect to family and medical leave insurance benefits is allowed in a
court of competent jurisdiction after a party aggrieved by the decision has
exhausted all administrative remedies established by the director.

C. The director shall implement
procedures to ensure confidentiality of all information related to any claims
filed or appeals taken to the maximum extent allowed by applicable laws.
END_STATUTE

START_STATUTE
23-382.11.

Erroneous payments and disqualification for benefits

A. A covered individual is
disqualified from family and medical leave insurance benefits for one year if
the individual is determined by the director to have wilfully made a false
statement or misrepresentation regarding a material fact, or wilfully failed to
report a material fact, to obtain benefits under this article.

B. If family and medical leave
insurance benefits are paid erroneously or as a result of wilful
misrepresentation, or if a claim for family and medical leave insurance
benefits is rejected after benefits are paid, the commission may seek repayment
of benefits from the recipient.� The director shall exercise the director's
discretion to waive, in whole or in part, the amount of any such payments for
good cause.
END_STATUTE

START_STATUTE
23-382.12.

Elective coverage

A. A self-employed person, including
a sole proprietor, partner or joint venturer, may elect coverage under this
article for an initial period of not less than three years.� The self-employed
person must file a notice of election in writing with the director, as required
by the commission.� The election becomes effective on the date the self-employed
person files the notice. As a condition of election, the self-employed
person must agree to supply any information concerning income that the
commission deems necessary.

B. A self-employed person who
has elected coverage may withdraw from coverage within thirty days after the
end of the three-year period of coverage, or at such other times as the
director may prescribe by rule, by filing written notice with the director.�
The withdrawal shall take effect not sooner than thirty days after the self-employed
person files the notice.
END_STATUTE

START_STATUTE
23-382.13.

Family and medical leave insurance program; rules

A. The commission shall establish and
administer a family and medical leave insurance program and, on or before
January 1, 2030, shall pay family and medical leave insurance benefits as
specified in this article.

B. The commission shall establish
reasonable procedures and forms for filing claims for benefits under this
article and shall specify the supporting documentation that is necessary to
support a claim for benefits, including any documentation required from a
health care provider for proof of a serious health condition.

C. The commission shall notify the
employer within five business days after a claim is filed pursuant to this
article.

D. The commission shall use
information sharing and integration technology to facilitate the disclosure of
relevant information or records, if an individual consents to the disclosure as
required under the laws of this state.

E. Information contained in the files
and records pertaining to an individual under this article is confidential and
not open to public inspection, other than to public employees in performing
their official duties. However, the individual or an authorized
representative of the individual may review the records or receive specific
information from the records on the presentation of the individual's signed
authorization.

F. The director shall adopt rules as
necessary to implement this article.
END_STATUTE

START_STATUTE
23-382.14.

Federal income tax

If the United States internal revenue service
determines that family and medical leave insurance benefits under this article
are subject to federal income tax, the commission must advise an individual
filing a new claim for family and medical leave insurance benefits, at the time
of filing such claim, of all of the following:

1. That the United States internal
revenue service has determined that benefits are subject to federal income tax.

2. That requirements exist pertaining
to estimated tax payments.

3. That the individual may elect to
have federal income tax deducted and withheld from the individual's payment of
benefits in the amount specified in the federal internal revenue code.

4. That the individual is allowed to
change a previously elected withholding status.
END_STATUTE

START_STATUTE
23-382.15.

Family and medical leave insurance fund

A. The
family and medical leave insurance fund is established consisting of
contributions received pursuant to section 23-382.04 and any other
monies. The commission shall administer the
fund. Expenditures from the fund may be used only for the purposes
of the family and medical leave insurance program, including conducting the
public education campaign pursuant to section 23-382.17. Only
the director or the director's designee may authorize expenditures from the
fund.

B. Whenever, in the judgment of the
commission, there is in the family and medical leave insurance fund an amount
of monies of more than the amount deemed by the commission to be sufficient to
meet the current expenditures properly payable from the fund, the state
treasurer may invest, reinvest, manage, contract, sell or exchange investments
acquired with such excess funds in the manner prescribed by the laws of this
state on notice from the commission.
END_STATUTE

START_STATUTE
23-382.16.

Annual report

Beginning September 1, 2030 and each September 1
thereafter, the commission shall submit a report to the governor, the president
of the senate and the speaker of the house of representatives, and shall
provide a copy of the report to the secretary of state, that includes all of
the following:

1. The projected and actual program
participation by section 23-382.01 category.

2. The gender of the beneficiaries.

3. The premium rates.

4. The family and medical leave
insurance fund balances.

5. Outreach efforts.

6. For leave taken under section
23-382.01, paragraph 2, subdivision (
b
), the family
members for whom leave was taken to provide care.
END_STATUTE

START_STATUTE
23-382.17.

Public education

The commission shall conduct a public education
campaign to inform employees and employers regarding the availability of family
and medical leave insurance benefits. Outreach information shall be
available in English, Spanish and other languages spoken by more than five
percent of this state's population.� The commission shall use monies from the
family and medical leave insurance fund established by section 23-382.15
to finance the public education campaign.
END_STATUTE

START_STATUTE
23-382.18.

Sharing technology

The commission is encouraged to use state data
collection and technology to the extent possible and to integrate the family
and medical leave insurance program with existing state policies.
END_STATUTE

Sec. 3. Section 23-405, Arizona Revised Statutes, is amended to read:

START_STATUTE
23-405.

Duties and powers of the industrial commission of Arizona
relative to occupational safety and health; reporting

The commission shall:

1. Administer
the provisions of

this article through the division
of occupational safety and
health
.

2. Appoint the director of the division
of occupational safety and health
.

3. Cooperate with the federal government to
establish and maintain an occupational safety and health program as effective
as the federal occupational safety and health program.

4.
Promulgate

Adopt

standards and regulations as required, pursuant to section 23-410,
and
promulgate

adopt
such other
rules and regulations as are necessary for the efficient functioning of the
division.

5. Have the authority to issue reasonable temporary,
experimental and permanent variances pursuant to sections 23-411 and 23-412.

6. Exercise such other powers as are necessary to
carry out the duties and requirements of this article.

7. Manage a telephone number that
allows employees to report potential violations anonymously in English and
other languages if an employer is not in compliance with the law.
�
END_STATUTE

Sec. 4.
Heading change

The article heading of title 23,
chapter 8, article 1, Arizona Revised Statutes, is changed from "RIGHT TO
WORK" to "GENERAL PROVISIONS".

Sec. 5.
Repeal

Section 23-1302, Arizona Revised
Statutes, is repealed.

Sec. 6. Section 23-1501, Arizona Revised
Statutes, is amended to read:

START_STATUTE
23-1501.

Severability of employment relationships; protection from
retaliatory discharges; exclusivity of statutory remedies in employment

A. The public policy of this state is that:

1. The employment relationship is contractual in
nature.

2. The employment relationship is severable at the
pleasure of either the employee or the employer unless both the employee and
the employer have signed a written contract to the contrary setting forth that
the employment relationship shall remain in effect for a specified duration of
time or otherwise expressly restricting the right of either party to terminate
the employment relationship.� Both the employee and the employer must sign this
written contract, or this written contract must be set forth in the employment
handbook or manual or any similar document distributed to the employee, if that
document expresses the intent that it is a contract of employment, or this
written contract must be set forth in a writing signed by the party to be
charged. Partial performance of employment shall not be deemed
sufficient to eliminate the requirements set forth in this
paragraph.
Nothing in
This paragraph
shall be construed to

does not
affect the
rights of public employees under the Constitution of Arizona and state and
local laws of this state or the rights of employees and employers as defined by
a collective bargaining agreement.

3. An employee has a claim against an employer for
termination of employment only if one or more of the following circumstances
have occurred:

(a) The employer has terminated the employment
relationship of an employee in breach of an employment contract, as set forth
in paragraph 2 of this subsection, in which case the remedies for the breach
are limited to the remedies for a breach of contract.

(b) The employer has terminated the employment
relationship of an employee in violation of a statute of this
state. If the statute provides a remedy to an employee for a
violation of the statute, the remedies provided to an employee for a violation
of the statute are the exclusive remedies for the violation of the statute or
the public policy set forth in or arising out of the statute, including the
following:

(i) The civil rights act prescribed in title 41,
chapter 9.

(ii) The occupational safety and health act
prescribed in chapter 2, article 10 of this title.

(iii) The statutes governing the hours of employment
prescribed in chapter 2 of this title.

(iv) The agricultural employment relations act
prescribed in chapter 8, article 5 of this title.

(v) The statutes governing disclosure of information
by public employees prescribed in title 38, chapter 3, article 9.

All definitions and restrictions contained in the statute also
apply to any civil action based on a violation of the public policy arising out
of the statute. If the statute does not provide a remedy to an
employee for the violation of the statute, the employee shall have the right to
bring a tort claim for wrongful termination in violation of the public policy
set forth in the statute.

(c) The employer has terminated the employment
relationship of an employee in retaliation for any of the following:

(i) The refusal by the employee to commit an act or
omission that would violate the Constitution of Arizona or the statutes of this
state.

(ii) The disclosure by the employee in a reasonable
manner that the employee has information or a reasonable belief that the
employer, or an employee of the employer, has violated, is violating or will
violate the Constitution of Arizona or the statutes of this state to either the
employer or a representative of the employer who the employee reasonably
believes is in a managerial or supervisory position and has the authority to
investigate the information provided by the employee and to take action to prevent
further violations of the Constitution of Arizona or statutes of this state or
an employee of a public body or political subdivision of this state or any
agency of a public body or political subdivision.

(iii) The exercise of rights under the workers'
compensation statutes prescribed in chapter 6 of this title.

(iv) Service on a jury as protected by section 21-236.

(v) The exercise of voting rights as protected by
section 16-1012.

(vi) The exercise of free choice with
respect to nonmembership in a labor organization as protected by section 23-1302.

(vii)
(
vi
)
Service in the national guard or armed forces as
protected by sections 26-167 and 26-168.

(viii)
(
vii
)
The exercise of the right to be free from the
extortion of fees or gratuities as a condition of employment as protected by
section 23-202.

(ix)

(
viii
)
The exercise of the right to be free from coercion
to purchase goods or supplies from any particular person as a condition of
employment as protected by section 23-203.

(x)

(
ix
)
The exercise of a victim's right to leave work as
provided in sections 8-420 and 13-4439.

B. If the statute provides a remedy to an employee
for a violation of the statute, the remedies provided to an employee for a
violation of the statute are the exclusive remedies for the violation of the
statute or the public policy prescribed in or arising out of the statute.
END_STATUTE

Sec. 7. Title 32, chapter 48, Arizona Revised
Statutes, is amended by adding article 3, to read:

ARTICLE 3. APPRENTICESHIPS

START_STATUTE
32-4831.

Occupational regulating authorities; apprenticeships;
examinations; rules

A. Notwithstanding any other law, an
occupational regulating authority under this title shall establish criteria
necessary for granting licenses, certificates or registrations, as appropriate,
through apprenticeship programs. The criteria shall provide for the
following:

1. An applicant must complete a
United States department of labor-APPROVED or a department of economic
security-approved apprenticeship program in the professional area in
which the applicant seeks licensure, certification or registration, either at a
school that is LICENSED by this state or by training with a person who is
licensed by this state and who holds the same license, certificate or
registration for which the applicant is applying.

2. If the occupational regulating
authority requires successful completion of an EXAMINATION for licensure,
certification or registration, the applicant must Successfully complete that
examination. The passing score on the EXAMINATION may not
DISCRIMINATE between an applicant from an apprenticeship program and an
applicant from a vocational or trade school.

B. An occupational regulating
authority may adopt rules to implement this section.
END_STATUTE

Sec. 8.
Industrial
commission of Arizona; rules; report; applicability; delayed repeal

A. Within thirty days after
the governor's regulatory review council's approval of the industrial
commission of Arizona's proposed rules, the industrial commission of Arizona
shall provide a copy of the rules to the president of the senate, the speaker
of the house of representatives, the majority caucus of the senate, the
minority caucus of the senate, the majority caucus of the house of
representatives, the minority caucus of the house of representatives and the
governor and submit a copy to the secretary of state.

B. This section applies to
sections 23-207 and 23-405, Arizona Revised Statutes, as amended by
this act.

C. This section is repealed
from and after December 31, 2027.

Sec. 9.
Rulemaking

All rules necessary to implement title
23, chapter 2, article 8.2, Arizona Revised Statutes, as added by this act,
shall be adopted within one hundred twenty days after the effective date of
this act.

Sec. 10.
Conditional
enactment

Section 23-1302, Arizona Revised
Statutes, as repealed by this act, and section 23-1501, Arizona Revised
Statutes, as amended by this act, do not become effective unless the
Constitution of Arizona is amended by a vote of the people at the next general
election by passage of Senate Concurrent Resolution _____, fifty-seventh
legislature, second regular session, relating to the right to work.