Ariz. Admin. Code § R20-5-1202 - Definitions

In this Article, the definitions of A.R.S. §§ 23-362 (version two), 23-371, and 23-364 apply. In addition, unless the context otherwise requires, the following definitions shall apply to both the Act and this Article:

1. "Act" means A.R.S. Title 23, Chapter 2, Articles 8 and 8.1.

2. "Affected employee" means an employee or employees on whose behalf a complaint may be filed alleging a violation under the Act.

3. "Amount of earned paid sick time available to the employee" means the amount of earned paid sick time or equivalent paid time off that is available to the employee for use in the current year.

4. "Amount of earned paid sick time taken by the employee to date in the year" means the amount of earned paid sick time or equivalent paid time off taken by the employee to date in the current year. Where an employee has used available equivalent paid time off for either the purposes enumerated in A.R.S. § 23-373 or other purposes, the employer may count that usage towards the "amount of earned paid sick time taken by the employee to date in the year."?

5. "Amount of pay the employee has received as earned paid sick time" means the amount of pay the employee has received as earned paid sick time or equivalent paid time off to date in the current year. Where an employee has received pay for equivalent paid time off for the purposes enumerated in A.R.S. § 23-373 or other purposes, the employer may count that pay towards the "amount of pay the employee has received as earned paid sick time."

6. "Authorized representative" means a person prescribed by law to act on behalf of a party who files with the Department a written instrument advising of the person's authority to act on behalf of the party.

7. "Casual Basis," when applied to babysitting services, means employment which is irregular or intermittent.

8. "Commission" means monetary compensation based on:

a. A percentage of total sales,

b. A percentage of sales in excess of a specified amount,

c. A fixed allowance per unit, or

d. Some other formula the employer and employee agree to as a measure of accomplishment.

9. "Communicable disease" has the meaning prescribed by A.R.S. § 36-661.

10. "Complainant" means a person or organization filing an administrative complaint under the Act.

11. "Department" means the Labor Department of the Industrial Commission of Arizona or other authorized division of the Industrial Commission as designated by the Industrial Commission.

12. "Earned sick time" under A.R.S. § 23-364(G) means earned paid sick time.

13. "Employee's regular paycheck" means a regular payroll record that is readily available to employees and contains the information required by A.R.S. § 23-375(C), including physical or electronic paychecks or paystubs.

14. "Equivalent paid time off" means paid time off provided under a paid leave policy, such as a paid time off policy, that makes available an amount of paid leave sufficient to meet the accrual requirements of the Act that may be used for the same purposes and under the same conditions as earned paid sick time.

15."Filing" means receipt of a report, document, instrument, videotape, audiotape, or other written matter at an office of the Department.

16. The term "health care professional" in A.R.S. § 23-373(G) has the same meaning as "health care professional," as defined in this Section.

17. "Health care professional" means any of the following:

a. A "physician" as defined by A.R.S. § 36-2351;

b. A "physician assistant" as defined by A.R.S. § 32-2501;

c. A "registered nurse practitioner" as defined by A.R.S. § 32-1601.

d. A certified nurse midwife who is a registered nurse practitioner approved by the Arizona State Board of Nursing to provide primary care services during pregnancy, childbirth, and the postpartum period;

e. A dentist licensed under A.R.S. Title 32, Chapter 11, Article 2; or

f. A behavioral health provider practicing as:

i. A psychologist licensed under A.R.S. Title 32, Chapter 19.1;

ii. A clinical social worker licensed under A.R.S. § 32-3293;

iii. A marriage and family therapist licensed under A.R.S. § 32-3311; or

iv. A professional counselor licensed under A.R.S. § 32-3301.

18. "Health care provider" has the meaning prescribed by A.R.S. § 36-661.

19. "Hours worked" means all hours for which an employee covered under the Act is employed and required to give to the employer, including all time during which an employee is on duty or at a prescribed work place and all time the employee is suffered or permitted to work.

20. "Minimum wage" means the lowest rate of monetary compensation required under the Act.

21. "Monetary compensation" means cash or its equivalent due to an employee by reason of employment.

22. "On duty" means time spent working or waiting that the employer controls and that the employee is not permitted to use for the employee's own purpose.

23. "Public benefits" has the same meaning as "state or local public benefit," as prescribed by A.R.S. § 1-502(I).

24. "Public health emergency" means a state of emergency declared by the governor in which there is an occurrence or imminent threat of an illness or health condition caused by bioterrorism, an epidemic or pandemic disease or a highly fatal infectious agent or biological toxin and that poses a substantial risk of a significant number of human fatalities or incidents of permanent or long-term disability.

"Salaried" means receiving a fixed amount of pay regardless of how many hours are worked each week.

"Salary" means a fixed compensation paid regularly for employment.

25. "Same hourly rate" means the following:

a. For employees paid on the basis of a single hourly rate, "same hourly rate" shall be the hourly rate the employee would have earned for the period of time in which earned paid sick time or equivalent paid time off is used, but shall in no case be less than minimum wage.

b. For employees who are paid multiple hourly rates of pay, "same hourly rate" shall be determined in the following order of priority, but shall in no case be less than minimum wage:

i. The hourly rate the employee would have earned, if known, for each hour of earned paid sick time or equivalent paid time off used.

ii. The weighted average of all hourly rates of pay during the previous pay period.

c. For employees who are paid a salary, no additional pay is due when the employee's use of earned paid sick time or equivalent paid time off results in no reduction in the employee's regular salary during the pay period in which the earned paid sick time or equivalent paid time off is used. "Same hourly rate" for salaried employees shall be determined in the following order of priority, but shall in no case be less than minimum wage:

i. The wages an employee earns during each pay period covered by the salary divided by the number of hours agreed to be worked during each pay period, if the number of hours to be worked during each pay period was previously established.

ii. The wages an employee earns during each workweek covered by the salary in the current year divided by 40 hours.

d. For employees paid on a commission, piece-rate, or fee-for-service basis, "same hourly rate" shall be determined in the following order of priority, but shall in no case be less than minimum wage:

i. The hourly rate of pay previously agreed upon by the employer and the employee as:

(1) A minimum hourly rate for work performed; or

(2) An hourly rate for payment of earned paid sick time or equivalent paid time off.

ii. The wages that the employee would have been paid, if known, for the period of time in which earned paid sick time or equivalent paid time off is used, divided by the number of hours of earned paid sick time or equivalent paid time off used.

iii. A reasonable estimation of the commission, piece-rate, or fee-for-service compensation that the employee would have been paid for the period of time in which the earned paid sick time or equivalent paid time off is used divided by the number of hours of earned paid sick time or equivalent paid time off used.

iv. The hourly average of all commission, piece rate, or fee-for-service compensation that the employee earned during the previous 90 days, if the employee worked regularly during the previous 90-day period, based on:

(1) hours that the employee actually worked; or

(2) a 40-hour workweek.

v. The hourly average of all commission, piece rate, or fee-for-service compensation that the employee earned during the previous 365 days, based on:

(1) hours that the employee actually worked; or

(2) a 40-hour workweek.

e. "Same hourly rate" includes shift differentials and premiums meant to compensate an employee for work performed under differing conditions (such as hazard pay or a shift differential for working at night) if the employee would have been entitled to the shift differential or premium for the period of time in which earned paid sick time or equivalent paid time off is used.

f. "Same hourly rate" does not include:

i. Additions to an employee's base rate for overtime or holiday pay;

ii. Subject to subsection (e), bonuses or other types of incentive pay; and

iii. Tips or gifts.

26. "Smallest increment that the employer's payroll system uses to account for absences or use of other time" means the smallest increment of time that an employer utilizes, by policy or practice, to account for absences or use of other paid time off.

27. "Tip" means a sum that a customer presents as a gift in recognition of some service performed, and includes gratuities. The sum may be in the form of cash, amounts paid by bank check or other negotiable instrument payable at par, or amounts the employer transfers to the employee under directions from a credit customer who designates an amount to be added to a bill as a tip. Gifts in forms other than cash or its equivalent as described in this definition, such as event tickets, passes, or merchandise, are not tips.

28. "Violation" means a transgression of any statute or rule, or any part of a statute or rule, including both acts and omissions.

29. "Willfully" means acting with actual knowledge of the requirements of the Act or this Article, or acting with reckless disregard of the requirements of the Act or this Article.

30. "Workday" means any fixed period of 24 consecutive hours.

31. "Workweek" means any fixed and regularly recurring period of seven consecutive workdays.

Notes

Ariz. Admin. Code § R20-5-1202

New Section made by emergency rulemaking at 13 A.A.R. 473, effective January 25, 2007 for 180 days (Supp. 07-1). Emergency renewed at 13 A.A.R. 2785, effective July 17, 2007 for 180 days (Supp. 07-3). New Section made by final rulemaking at 13 A.A.R. 4315, effective January 13, 2008 (Supp. 07-4). Amended by final rulemaking at 23 A.A.R. 2907, effective 10/3/2017. Amended by final rulemaking at 29 A.A.R. 607, effective 2/9/2023.