Proposition 206 mandating at least three days of paid sick leave for all employees came into effect at the beginning of July and is already accruing small business casualties.
“We’re looking at about a 40-percent increase in our payroll costs,” said small business owner Jeffrey Malkoon according to ABC 15. “We’ve taken pride in giving a lot of kids their first job.”
The gourmet peanut butter company owner employs a dozen workers to sell his product around the state at farmers markets, reports ABC 15. Under the new legislation, he’s considering laying off workers to allay the cost.
The proponents of Proposition 206 acknowledge that some businesses are going to face certain difficulties, but maintain that the law will ultimately lead to happier and more productive employees.
“The implementation is going to have its own sets of challenges depending on the business that you have,” said Tomas Robles, co-executive director of LUCHA and leader of the Proposition 206 campaign, according to ABC 15.
Proposition 206 also includes a timeline for increasing the minimum wage in Arizona. As of 2017, the minimum wage is set at $10 per hour, but each subsequent year will see an increase by $0.50 until it reaches $12 per hour in 2020.