ARIZONA WORKPLACE INFECTION PROTECTION ACT
TITLE: ARIZONA WORKPLACE INFECTION PROTECTION ACT
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SECTION 1. TITLE
This Act shall be known as the Arizona Workplace Infection Protection Act.
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SECTION 1.1. LEGISLATIVE FINDINGS AND DECLARATION OF PURPOSE
A. Legislative Findings. The Legislature finds and declares that:
1. Communicable diseases, including influenza, COVID-19, norovirus, and other respiratory and enteric pathogens, impose significant and preventable costs on Arizona’s workers, businesses, schools, and healthcare system;
2. Every worker has the right to a workplace free from recognized hazards that are causing or are likely to cause death or serious physical harm, as established in A.R.S. § 23-403;
3. Reasonable infection control policies—including symptom screening, exclusion of infectious individuals, source control measures, alternative service models, and sanitation protocols—are effective at mitigating these hazards;
4. When employers fail to implement and enforce such reasonable policies, they expose their workers to preventable illness;
5. Providing a direct remedy for workers—including compensation for the full period of illness—creates a powerful economic incentive for employers to adopt reasonable infection control measures without the need for extensive state enforcement;
6. Implementation grants help businesses, schools, and childcare facilities acquire the materials and infrastructure needed to adopt infection control measures; and
7. The better these provisions are implemented and followed, the less often they will be required, as reduced transmission leads to fewer infections, fewer claims, and lower utilization of compensation mechanisms.
B. Declaration of Purpose. It is the purpose of this Act to:
1. Establish a worker’s right to a workplace with reasonable infection control policies;
2. Provide a remedy for workers who become ill due to employer failure to implement such policies;
3. Provide implementation grants to help businesses, schools, and childcare facilities adopt infection control measures;
4. Remove punitive attendance policies that incentivize sending sick children to school; and
5. Protect parents who need to care for ill children.
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SECTION 2. DEFINITIONS
In this Act, unless the context otherwise requires:
1. “ADHS” means the Arizona Department of Health Services.
2. “ADOSH” means the Arizona Division of Occupational Safety and Health.
3. “Childcare facility” means a facility licensed under Title 36, Chapter 7, Arizona Revised Statutes.
4. “Communicable disease” means an illness caused by a pathogen designated by ADHS as posing a significant risk of transmission in workplace or school settings, including influenza, COVID-19, norovirus, hepatitis A, and other respiratory and enteric pathogens.
5. “Reasonable infection control policies” means policies that are:
(a) Consistent with guidance from the Centers for Disease Control and Prevention (CDC), ADHS, or other recognized public health authorities;
(b) Appropriate to the workplace setting, the tasks performed, and the nature of interaction with other individuals; and
(c) Implemented consistently and enforced in good faith.
6. “School” means any public school district, charter school, or private school operating in Arizona serving students in pre-kindergarten through grade twelve.
7. “Tipped worker” means a worker who customarily and regularly receives more than $30 per month in tips and for whom the employer claims the tip credit under Arizona or federal law, or who receives a majority of their total compensation from tips.
8. “Unlimited sick leave” means paid leave provided to a worker for the duration of exclusion due to a communicable disease, without regard to any accrued or capped leave balance.
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SECTION 3. UNLIMITED SICK LEAVE
A. Any worker excluded from work due to a communicable disease, or excluded from work to care for a child excluded from school or childcare due to a communicable disease, shall receive unlimited paid sick leave for the duration of the exclusion.
B. The employer shall pay the worker at the worker’s regular base hourly wage for all hours the worker would have otherwise been scheduled to work during the exclusion period, based on the worker’s average scheduled hours over the preceding four weeks.
C. A worker may not be required to use accrued paid time off, vacation leave, or other accrued benefits before receiving unlimited sick leave under this Act.
D. Unlimited sick leave under this Act does not count toward any attendance-based discipline policy, point system, or similar attendance tracking.
E. A worker’s employment status, seniority, and eligibility for promotion or benefits shall be preserved during any exclusion under this Act as if the worker had been actively employed.
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SECTION 3.1. TIPPED WORKER COMPENSATION FUND
A. Establishment of Fund. There is established the Arizona Tipped Worker Infection Isolation Compensation Fund, administered by the Arizona Department of Economic Security (DES).
B. Eligibility. A tipped worker excluded from work under Section 3 is eligible for compensation from the Fund equal to 80% of the daily average of reported tips from the six-week period immediately preceding the first day of exclusion.
C. Calculation. The daily average shall be calculated by:
1. Summing the worker’s total reported tips over the six-week period (42 calendar days); and
2. Dividing that sum by the number of days the worker worked during that period.
D. Payment Duration. Compensation shall be paid for each day of exclusion, up to a maximum of:
1. Ten (10) calendar days per illness episode; and
2. Twenty (20) calendar days per calendar year.
E. Employer Submission. Employers shall submit claims for Fund compensation through their normal payroll processing system or through a state portal. The employer shall:
1. Pay the Fund amount to the worker in the same payroll cycle as the worker’s base wage;
2. Identify the payment as “State Tipped Worker Isolation Compensation” on the payroll statement; and
3. Submit a claim for reimbursement from the Fund.
F. Reimbursement. DES shall reimburse employers within ten (10) business days of receiving a complete submission.
G. Appropriation. There is appropriated from the state general fund to DES for the Tipped Worker Compensation Fund the amount determined by ADHS under Section 11 of this Act.
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SECTION 4. TAX INCENTIVE: 1.5X STATE INCOME TAX DEDUCTION
A. For taxable years beginning after December 31, 2026, an employer may deduct from Arizona adjusted gross income an amount equal to 150% of the base wages paid to workers for unlimited sick leave under Section 3.
B. The deduction is available to all employers subject to Arizona income tax. Employers not subject to Arizona income tax, including tribal employers, may apply to the Arizona Department of Revenue for a rebate.
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SECTION 5. PROTECTION AGAINST RETALIATORY HOUR REDUCTION
A. Prohibition. An employer may not reduce the average weekly hours of a worker who has taken unlimited sick leave under Section 3 or received compensation under Section 3.1 within the preceding three weeks, unless the employer has documented disciplinary cause unrelated to the use of sick leave.
B. Average Hours Defined. “Average weekly hours” means the mean number of hours worked per week during the six-week period immediately preceding the first day of sick leave.
C. Burden of Proof. If a worker’s weekly hours are reduced by 20% or more within three weeks following a return from sick leave, a rebuttable presumption arises that the reduction is retaliatory. The employer may rebut the presumption by producing clear and convincing evidence of a bona fide reduction in force, documented disciplinary issues predating the sick leave, or the worker’s voluntary reduction in availability.
D. Remedies. A worker whose hours are reduced in violation of this section may file a complaint with ADOSH or bring a civil action and shall be entitled to reinstatement of hours, back pay, and reasonable attorney fees.
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SECTION 6. WORKER REMEDY FOR UNSAFE INFECTION CONTROL CONDITIONS
A. Worker Right. A worker has the right to a workplace where the employer has implemented and enforced reasonable infection control policies that effectively mitigate the risk of transmission of communicable diseases from other employees, clients, and customers.
B. Reasonable Policies Defined. Reasonable infection control policies include, at a minimum:
1. Exclusion of infectious individuals: A policy requiring that any employee, client, or customer who exhibits visible signs of a communicable respiratory infection (including cough, congestion, or fever) either:
(a) Wears appropriate source control (such as a surgical mask, ASTM Level 3 mask, or N-95 respirator) while on the premises; or
(b) Is provided alternative means of service that does not require close contact with employees;
2. Employee sick leave: A policy providing that employees who are excluded due to illness receive paid leave under Section 3;
3. Sanitation and hygiene: A policy ensuring regular sanitation of high-touch surfaces and availability of hand hygiene supplies; and
4. Training: A policy providing employees with training on infection control measures.
C. Affirmative Defense. An employer who has implemented and enforced reasonable infection control policies shall have an affirmative defense to any claim under this section. The employer bears the burden of proof to demonstrate by a preponderance of the evidence that such policies were in place and consistently enforced.
D. Worker Complaint to ADOSH.
1. A worker who contracts a communicable disease that the worker reasonably believes was transmitted at a workplace where the employer failed to implement and enforce reasonable infection control policies may file a complaint with ADOSH.
2. ADOSH shall investigate within thirty (30) days and determine:
(a) Whether the employer had reasonable infection control policies in place;
(b) Whether the worker contracted a communicable disease; and
(c) Whether the disease was reasonably likely to have been transmitted in the workplace.
3. If ADOSH finds in favor of the worker, ADOSH shall order the employer to pay:
(a) Triple the worker’s total compensation (including base wages and, for tipped workers, the average daily tips under Section 3.1) for each day the worker was absent due to the illness, up to a maximum of thirty (30) calendar days;
(b) The worker’s reasonable medical expenses; and
(c) Implement or correct infection control policies within a reasonable time.
E. Civil Action. As an alternative to filing a complaint with ADOSH, a worker may bring a civil action in superior court. A prevailing worker shall be entitled to:
1. Triple compensation for each day absent, up to thirty (30) calendar days;
2. Reasonable medical expenses;
3. Compensatory damages;
4. Reasonable attorney fees and costs; and
5. Such injunctive relief as the court deems appropriate.
F. No Retaliation. An employer may not retaliate against a worker for filing a complaint, bringing a civil action, or requesting implementation of infection control policies. A worker subjected to retaliation may bring a separate civil action for reinstatement, back pay, liquidated damages, and attorney fees.
G. Cumulative Remedies. The remedies in this section are cumulative and do not supplant other remedies available under state or federal law.
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SECTION 7. SCHOOLS AND CHILDCARE FACILITIES
A. School and Childcare Infection Control Grants.
1. ADHS shall administer a grant program to provide funds to schools and childcare facilities for infection control materials, including:
(a) Personal protective equipment (masks, thermometers);
(b) Testing supplies;
(c) Ventilation improvements (HEPA air purifiers, HVAC upgrades);
(d) Physical barriers;
(e) Health office staffing and training; and
(f) Alternative instruction technology.
2. Grant amounts shall be determined by ADHS under Section 11 of this Act.
B. Prohibition on Punitive Attendance Policies.
1. No school or childcare facility may:
(a) Impose academic penalties for absences due to illness;
(b) Condition awards, privileges, or recognition on perfect attendance;
(c) Use attendance as a factor in eligibility for extracurricular activities, promotions, or graduations, except for minimum instructional hour requirements; or
(d) Require a healthcare provider’s note for absences of less than ten (10) consecutive days.
2. Any absence due to illness shall be recorded as excused, and the student shall be permitted to make up all coursework without penalty.
C. Uniform Education Standards for Absent Students.
Each school shall develop a plan to provide students absent due to illness with access to uniform education standards, which may include remote instruction, asynchronous learning materials, assignment packets, or individualized instructional plans.
D. Parental Leave for Child Illness.
1. A worker is entitled to unlimited sick leave under Section 3 to care for a child excluded from school or childcare due to a communicable disease.
2. Notification from a school or childcare facility that a child has been excluded shall be accepted by the employer as verification.
3. A worker taking such leave shall receive the same compensation under Sections 3 and 3.1 as a worker excluded for their own illness.
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SECTION 8. IMPLEMENTATION GRANTS FOR EMPLOYERS
A. Establishment. There is established the Workplace Infection Control Implementation Grant Program, administered by the Arizona Commerce Authority (ACA) in consultation with ADHS.
B. Eligibility. A business with fewer than five hundred (500) employees is eligible for a grant if it is subject to this Act and submits an application.
C. Grant Amounts. Grant amounts shall be determined by ADHS under Section 11 of this Act, based on industry classification and employee count.
D. Allowable Uses. Grant funds may be used for personal protective equipment, testing supplies, ventilation improvements, physical barriers, training, and payroll system upgrades.
E. Priority. If applications exceed available funding, the ACA shall prioritize businesses with fewer than fifty (50) employees, businesses in rural areas, and businesses in high-transmission-risk industries.
F. Sunset. The grant program shall expire on December 31, 2027.
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SECTION 9. NON-RETALIATION AND PRIVATE RIGHT OF ACTION
A. An employer may not discharge, demote, suspend, threaten, harass, or discriminate against a worker for:
1. Exercising rights under this Act;
2. Filing a complaint or participating in an investigation under this Act;
3. Bringing a civil action under this Act; or
4. Requesting implementation of infection control policies.
B. A worker aggrieved by a violation of this Act may bring a civil action in superior court to seek reinstatement, restoration of hours, back pay with interest, liquidated damages, compensatory damages, and reasonable attorney fees.
C. The statute of limitations for actions under this section shall be two years.
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SECTION 10. SEVERABILITY
If any provision of this Act or its application to any person or circumstance is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.
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SECTION 11. GRANT AMOUNT DETERMINATION AND APPROPRIATION
A. Determination by ADHS. Within sixty (60) days of the effective date of this Act, ADHS shall determine and publish:
1. The total appropriation amount necessary for the Tipped Worker Compensation Fund under Section 3.1, based on projected utilization;
2. The grant amounts for schools and childcare facilities under Section 7(A), based on:
(a) The actual cost of personal protective equipment, testing supplies, ventilation improvements, physical barriers, and other allowable uses;
(b) Differences in cost based on facility type, enrollment, and geographic location; and
(c) The need to ensure equitable distribution across rural and urban areas;
3. The grant amounts for businesses under Section 8(C), based on:
(a) The actual cost of personal protective equipment, testing supplies, ventilation improvements, physical barriers, training, and other allowable uses;
(b) Differences in cost based on industry classification and employee count; and
(c) The need to ensure that small businesses and businesses in high-transmission-risk industries receive adequate support.
B. Consideration of Input. In making these determinations, ADHS shall consult with:
1. The Arizona Commerce Authority regarding business implementation costs;
2. The Arizona Department of Education regarding school needs;
3. The Arizona Department of Economic Security regarding childcare facility needs;
4. Industry associations representing affected businesses;
5. Labor organizations representing affected workers; and
6. Public health experts regarding effective infection control measures.
C. Report to Legislature. ADHS shall submit a report to the President of the Senate, the Speaker of the House of Representatives, and the Joint Legislative Budget Committee containing the determinations made under this section, including detailed justifications for each amount.
D. Appropriation. Upon receipt of the report, the sum determined by ADHS under subsection (A) is appropriated from the state general fund to the respective agencies for the purposes set forth in this Act. If the total determined amount exceeds available funds, the Joint Legislative Budget Committee may recommend, and the Legislature may appropriate, a phased distribution prioritizing small businesses, rural schools, and high-transmission-risk industries.
E. Emergency Rulemaking. ADHS may adopt emergency rules to implement this section pursuant to A.R.S. § 41-1026. Emergency rules adopted under this section shall be effective for one hundred eighty (180) days and may be renewed as necessary.
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SECTION 12. EFFECTIVE DATE
This Act shall take effect on January 1, 2027.
