TO: Marylee Luther, HR Director Clapton Commercial Construction
FROM: Cindy Sanchez, Consultant Atwood and Allen Consulting
DATE: March 17, 2014
SUBJECT: Compliance Planning
Atwood and Allen Consulting (AAC) understand that Clapton Commercial Construction (CCC) have plans to expand their existing company of 650 employees located in Detroit, Michigan into the state of Arizona, adding 130 additional employees (20%). This consulting firm has been tasked with researching applicable employment laws so the HR department is in compliance with all State, Federal, and local agencies.
CCC is an existing business with over 15 employees which makes them well equipped with knowledge of Federal ...view middle of the document...
Handbooks, probationary period time frames, and job offer documentation must be very carefully constructed to follow set guidelines.
Wages and Hours
Arizona has a minimum wage of $7.90 per hour and this wage is increased every January 1 by the Industrial Commission of Arizona based on the cost of living adjustments (“Labor Employment Laws”, 2013, p. 4). Arizona State has no overtime laws so any overtime is based on Federal Fair Labor Standards Act (FLSA) standards and is paid at time and a half after 40 hours in the same work week.
Employers must pay their employees a minimum of twice per month and no longer than 16 days apart and within 5 day after the end of the pay period. There are different requirements if the payroll services are outside of the State so it is recommended that CCC consult with their payroll services and decide whether they will keep their current payroll system for the new facility or if they are going to hire a payroll service in the state of Arizona.
When an employee is terminated he/she must receive their final paycheck within three working days of termination or the next pay period, whichever is soonest.
Violations of Wage and Hours that involve FLSA standards not being met are handled by the Department of Labor Wage and Hour Division of the Employment Standards Administration and can result in fines of up to $10,000.
Arizona follows the Federal Americans with Disabilities Act of 1990 (ADA) requirements. However, there are some cities in Arizona that have local ordinances prohibiting other types of discrimination. Phoenix and Tucson “prohibit discrimination on the basis of sexual orientation, gender identity or expression, and marital status. Tucson also prohibits discrimination on the basis of familial status” (State Bar of Arizona, 2014, p. 2).
Discrimination violations claims are investigated by the Equal Employment Opportunity Commission (EEOC) within 300 days of the violation and by the Arizona Civil Rights Division (ARCD) of the Attorney General’s Office...