Arizona* has introduced several key labor-related legal updates at both the local and state levels that go into effect throughout the month of July 2025.
*If you are a CQC client in another state, please email us at team@copperquailconsulting.com to request summaries of state updates you should be aware of.
Tempe Heat Safety Standards Ordinance
Effective: 7/9/2025
- Purpose: The City of Tempe passed a local ordinance aimed at protecting outdoor workers from heat-related illness. It applies to all city departments and contractors performing outdoor work.
- Key Requirements:
- Heat Safety Plans & Protections: Employers must develop written heat safety plans and provide outdoor workers with access to drinking water, shade, and mandatory rest breaks when temperatures exceed 100°F and/or within the “Heat Season” defined by AZDHS, May 1 – September 30.
- Training & Acclimatization: Annual training is required for all outdoor workers, including guidance for those returning to work in high heat.
- Worker Rights & Communication: Bilingual signage must inform workers of their heat safety rights, and whistleblower protections safeguard those who report unsafe conditions.
- Penalties for Non-Compliance:
- Any contractor or subcontractor found to be in violation of the ordinance will be reported to OSHA and could face sanctions up to and including voiding the contract.
Arizona SB 1159 – Increased Wage Claim Thresholds
Effective: 7/25/2025
- New Limits: Raises the maximum recoverable wage claim via the Arizona Department of Labor from $5,000 to $12,000; fault claims must be filed within one year of accrual.
- Procedures:
- Employees can now file smaller claims directly with the department (instead of through civil court).
- The Department can pursue collections, judgments, garnishment, or attachment.
- Funds collected are held in a special state fund for disbursement to claimants.
- Impact: Empowers workers to pursue wage disputes more effectively and expediently for larger unpaid amounts.
- Penalties for Non-Compliance: “If an employer fails to pay wages due to an employee, the employee may recover, in a civil action against the employer, the unpaid wages in an amount that is triple the unpaid wages.”
Arizona HB 2032 – Workers’ Compensation Assigned‑Risk Plan
Effective: 7/26/2025
- Purpose: Streamlines access to workers’ compensation insurance for employers who are unable to secure coverage while clarifying grounds for exemption from the risk plan.
- Key Features:
- Employers refused by two or more insurers are automatically placed in the state-assigned risk plan managed through the Department of Insurance.
- Exceptions apply to employers with safety violations, unpaid premiums, or who falsify their application.
- The law mandates insurer participation; refusal results in loss of the right to sell workers’ compensation policies.
- A governing plan administrator will collect fees, distribute risks equitably, and oversee claims, safety services, and compliance.
- Impact: Creates a safety net ensuring coverage availability and fair access to claims services for compliant employers.
- Penalties for Non-Compliance: Exclusion from assigned risk plan.
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All employers should review their policies and practices to ensure alignment. If questions or concerns arise, reach out to us! We’re happy to help. Simply schedule a call or email us at team@copperquailconsulting.com.
