Assigned to COM FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
FACT SHEET FOR H.C.R. 2031
employee benefits; compensation; state preemption
Purpose
Subject to voter approval, constitutionally declares that the regulation of employee benefits
is of statewide concern and not subject to further regulation by a city, town or other political
subdivision of Arizona.
Background
Statute states that the regulation of employee benefits, including nonwage compensation,
paid and unpaid leave and other absences, meal breaks and rest periods, is of statewide concern.
The regulation of nonwage employee benefits is not subject to further regulation by a city, town
or other political subdivision of Arizona. Any employee benefit, including nonwage compensation,
paid and unpaid leave and other absences, meal breaks and rest periods, provided by a city, town
or other political subdivision of Arizona to its employees is exempt from state preemption.
Nonwage compensation includes fringe benefits, welfare benefits, child or adult care plans,
sick pay, vacation pay, severance pay, commissions, bonuses, retirement plan or pension
contributions, other federal employment benefits and other amounts promised to the employee that
are more than the minimum compensation due an employee by reason of employment (A.R.S.
ยง 23-204).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. Declares, subject to voter approval, that the regulation of employee benefits, including wage
and nonwage compensation, paid and unpaid leave and other absences, meal breaks and rest
periods, is of statewide concern and not subject to further regulation by a city, town or other
political subdivision of Arizona.
2. Requires the Secretary of State to submit the proposition to the voters at the next general
election.
3. Becomes effective if approved by the voters and on proclamation of the Governor.
House Action
COM 2/15/22 DP 6-4-0-0
3
rd
Read 2/23/22 31-28-1
Prepared by Senate Research
March 7, 2022
JT/CY/sr