SB 1254 Summary

• Employers with 50+ employees must notify the Department of Economic Security at least 120 days before relocating a call center to another state or foreign country.

• Employers who violate the notification requirement face civil penalties of up to $10,000 per day, which may be reduced by the Industrial Commission of Arizona for just cause.

• Employers appearing on the Department's semiannual relocation list become ineligible for state grants and guaranteed loans for 5 years and must repay previously received grants, tax benefits, and subsidies.

• State contractors performing call center or customer service work must employ workers entirely within Arizona, with compliance required by November 1, 2021 (new hires must be in-state beginning November 1, 2020).

• The Arizona Commerce Authority may waive ineligibility or repayment requirements if the employer demonstrates the loan or grant is necessary to prevent substantial job loss, environmental harm, or significant economic impact to the state.