Consideration and Adoption of Ordinance No. 2017-12 and Resolution No. 2017-17:  An Ordinance and Resolution Amending the Employee Handbook of Regulations and Flagstaff City Code, by Adopting Addendum 8 to the Employee Handbook of Regulations.

In November 2016, the citizens of Arizona passed the Fair Wages and Healthy Families Act.  This Act increased the minimum wage.  In addition, it provided temporary employees the right to accrue “Earned Paid Sick Time.”  This is a benefit to temporary employees because they currently do not accrue sick leave.  Also, under the new Act, employees will receive additional benefits such as the ability to carry over Earned Paid Sick Time from year-to-year or to use the Earned Paid Sick Time for Crime Victim Leave or to respond to a Public Health Emergency at a child’s school.

Below is an overview of the requirements the City must adopt to comply with the new Fair Wages and Healthy Families Act by July 1, 2017:

• All employees must accrue Earned Paid Sick Time of at least one (1) hour for every 30 hours worked.
• Earned Paid Sick Time may be used for:
  • Sick Leave: an employee's Injury, Illness or Medical Care.
  • Family Member Sick Leave: to care for the employee Family Member's Injury, Illness or Medical Care.
  • Crime Victim Leave: to receive or assist a Family Member in receiving services related to domestic or sexual violence, abuse or stalking, including medical, legal and court attendance.
  • Public Health Emergency Leave: in response to the closure of an employer or the employee's child's school by order of a public official or due to a Public Health Emergency.
• Accrued Earned Paid Sick Time will carry over from year-to-year.
• All employees must be able to use at least 40 hours annually commencing from the date of hire.
• There can be no retaliation for use of Earned Paid Sick Time.
• An employee may no longer be required to provide a doctor's note (or other documentation) for use of Earned Paid Sick Time unless the employee has been absent for three (3) consecutive work days.
• If an employee leaves employment, there is no requirement to pay accrued Earned Paid Sick Time.
• If an employee is rehired within nine (9) months, the employee will be credited with any unused or unpaid Earned Paid Sick Time. 

In addition changes were made to the Holiday Leave policy to address the way Holiday Compensatory Time is accrued and forfeited:

• Employees may carry an unlimited amount of Holiday Compensatory Time until October 1st when the employee must reduce the balance to a maximum of 24 hours, except Fire Suppression Personnel must reduce the balance to a maximum of 56 hours, or forfeit the hours above the maximum.
• Fire Suppression Personnel Holiday Compensatory Time accrual reverted back to 11.2 hours for the employees who are not scheduled to work rather than splitting the 11.2 hours amongst the three shifts.

The cost of the addition of Earned Paid Sick Time for Temporary employees is indirect.  The salary is already budgeted based on the number of hours the temporary employee is expected to work and the Earned Paid Sick Time would be used in lieu of regular  hours worked, which does not increase the cost of the anticipated annual salary.  The indirect cost would be experienced in the form of productivity. 

The recommended action would amend the Employee Handbook of Regulations policies:

• 1-10-011 General Definitions
• 1-40-040 Resignation
• 1-50-010 Holiday Leave
• 1-50-030 Sick Leave
• 1-50-031 Dependent Sick Leave
• 1-50-071 Crime Victim Leave
• 1-50-032 Personal Leave
• 1-50-040 Bereavement Leave
• 1-50-050 Family Medical Leave
• 1-50-100 Donated Leave

These changes will further the City's ability to attract and retain quality staff by providing all employees with Earned Paid Sick Time.  The additional change to the accrual and forfeiture of Holiday Compensatory Time will allow employees a greater opportunity to accrual compensatory time for all holidays and use the Holiday Compensatory Time without forfeiting the benefit. 
 

No.

City Council may choose to amend recommended action prior to adoption.

Inform.