ARIZONA LABOR AND EMPLOYMENT LEGISLATION 2000
By Michele L. Tyler
This document summarizes
the most significant labor and employment practice-related bills passed
by the Arizona Legislature and signed by the Governor in 2000. The legislation
affecting employers was, for the most part, non-controversial and employers
may be relieved to know that the legislature did not create any new programs
that will significantly burden them in their relationships with employees.
Additionally, beginning January 1, 2001, employers will have a new tool
with which to protect their employees and their premises from harassment.
(See HB 2109, below.)
The summaries provided
below are intended only to give a synopsis of the content of each bill.
Please call Michele Tyler at (602) 916-5391 or any other member of Fennemore
Craig’s Labor and Employment Practice Group at (602) 916-5000 if
you have comments or questions on any of the bills, or would like copies
of any of the bills.
The Legislature
adjourned sine die on April 18. Therefore,
the effective date for all bills not carrying an emergency clause, or
a retroactive or delayed effective date, is noon on July 18, 2000.
Workplace Harassment:
HB 2109 - This legislation permits an employer to petition the
court for an Injunction Against Workplace Harassment ("IAWH")
to protect the workplace and all persons on the business property or performing
official work duties from harassment. This measure creates a device for
employers to protect their employees and property, similar to the existing
Injunction Against Harassment ("IAH"), which is available for
individuals. See A.R.S. § 12-1809. The major difference between an
IAH and an IAWH is that the IAH is issued to protect the individual and
follows the individual. An IAWH, on the other hand, is issued to protect
the workplace and stays at the workplace, protecting employees and other
individuals while they are on the employer’s property or are performing
official work duties.
HB 2109 defines "harassment"
as "a single threat or act of physical harm or damage or a series
of acts over any period of time that would cause a reasonable person to
be seriously alarmed or annoyed." The bill does not modify the duty
of the employer to provide a safe workplace, nor does it permit an injunction
to issue against constitutionally-protected activities, including labor
disputes. It does, however, immunize employers from civil liability for
seeking or failing to seek an injunction under this section unless the
employer seeks an injunction for an improper purpose. An act or statement
by an employer related to the IAWH cannot be deemed an admission by the
employer of any fact, but may be used for impeachment purposes.
The Governor approved
HB 2109 on March 30, 2000. The effective date of this legislation is midnight
on December 31, 2000 (effectively, January 1, 2001). (Laws 2000, Chapter
72)
Job Training
Tax: HB 2262 - This bill levies a new job training employer tax,
effective January 1, 2001, at one-tenth of one percent of an employer’s
taxable wages to provide job training for new and existing employees.
HB 2262 further provides that beginning January 1, 2001 until the federal
unemployment excise tax rate is reduced to six percent or less, existing
income rates are reduced by one-tenth of one percent. Thus, employers
should feel no immediate increase in tax burden because the reduction
in unemployment insurance tax is designed to offset the new tax. Additionally,
the bill expands the Arizona job training program to provide grants to
train existing workers. Employers are required to pay 50 percent of the
cost of training an existing worker and 25 percent of the cost of training
new workers.
HB 2262 was approved
by the Governor on April 25, 2000 and becomes law on the general effective
date. (Laws 2000, Chapter 383)
"Blacklisting"
Statute: HB 2307 - This legislation amends Arizona’s "blacklisting"
statute to add escrow agents to the group of employers who, upon request
by a bank, savings and loan, credit union, or other escrow agent may provide
a written employment reference advising of an applicant’s involvement
in any theft, embezzlement, or misappropriation that has been reported
to federal authorities or to the State Banking Department. The bill does
not affect other sections of the existing statute which permit an applicant’s
former employers to provide information in good faith about the applicant
to a prospective employer.
HB 2307 provides for
a general effective date and was approved by the Governor on March 27,
2000. (Laws 2000, Chapter 60)
Health Insurance
Coverage: SB 1286 - This legislation provides the Department of
Economic Security ("DES") authority to enforce health insurance
coverage and support disbursement to temporary caretakers. The bill affects
employers in the following ways.
It provides that workers’ compensation benefits are eligible for
assignment for payment of child support and spousal maintenance.
It amends employer obligations when an order for medical insurance coverage
is in effect to require the employer to notify both the state IV-D agency
and the other parent within ten days when insurance coverage is terminated
or the carrier is changed and of the last day on which health insurance
coverage is effective.
It creates a new § 25-535.
Most significantly
for employers, the creation of a new § 25-535 requires employers
to enroll an employee’s child in a health insurance program if the
employee is subject to an administrative or court order to obtain health
insurance coverage for the child. When an obligated parent under an order
to obtain health insurance coverage changes employment, the new employer
should receive a Medical Support Notice to Enroll and support documents
from the DES. The new employer then has 20 days to provide its own health
insurance plan with the Notice to Enroll. SB 1286 specifically provides,
however, that if the employer does not have existing dependent coverage,
it is not required to create this coverage, but must notify DES of this
fact within ten days of receiving the Notice to Enroll.
The Governor approved
SB 1286 on April 19, 2000. The existing § 25-535 is repealed from
and after September 30, 2000. The new § 25-535 created by SB 1286
becomes effective October 1, 2000. The other provisions of SB 1286 affecting
employers become law on the general effective date. (Laws 2000, Chapter
312)
Driving Time:
SB 1448 - This legislation increases the number of hours that
drivers transporting agricultural or farm supplies for agricultural purposes
can work. During planting and harvesting seasons, these drivers may work
up to 16-hour shifts, or 112 hours in a seven-day period, provided the
transportation is limited to (1) an area within a 100-mile radius from
the source of the commodities or the distribution point for the farm supplies
and (2) is from the field to cooling facilities to the first point of
processing or packing. Additionally, the bill allows drivers with special
situation farm products or livestock, during 28 days per year, to drive
not more than 12 hours during a 16-hour shift. SB 1148 permits the Director
of the Department of Public Safety to waive the maximum on-duty time limits
applicable to a seven-day period in the event of an emergency.
The Governor approved SB 1448 on April 3, 2000 and it becomes law on the
general effective date. (Laws 2000, Chapter 116)