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Arizona employment rules for employers

Last verified Sep 24, 2026 · 8 verified rules · How we verify every rule

General information, not legal advice. This page is for general information only and isn’t legal, financial or tax advice. Laws vary by state and change; check the official source or talk to a qualified professional about your situation. Every rule on this page links to its official source.

Minimum wage

What is the minimum wage?Not verified yetCheck the official source

We have not verified this rule for Arizona yet. Check the official source: dol.gov.

Minimum wage by state

Used in: How to hire your first employee

Paydays

How often do you have to pay?At least 2 a monthVerified Sep 24, 2026 · 2 official sources

Employers must designate two or more fixed paydays in each month, not more than 16 days apart. (U.S. DOL WHD State Payday Requirements, footnote 3)

“Arizona. Payday two or more days in a month, not more than 16 days apart.”

U.S. DOL WHD State Payday Requirements, footnote 3 · dol.gov

“A. Each employer in this state shall designate two or more days in each month, not more than sixteen days apart, as fixed paydays for payment of wages to the employees.”

dol.gov · azleg.gov

Payday laws by state

Used in: How to hire your first employee

Meal breaks

Do adult employees get a meal break?Not verified yetCheck the official source

We have not verified this rule for Arizona yet. Check the official source: dol.gov.

Break laws by state

Rest breaks

Do adult employees get paid rest breaks?Not verified yetCheck the official source

We have not verified this rule for Arizona yet. Check the official source: dol.gov.

Break laws by state

Final paycheck

If you fire someone, when is the last paycheck due?Not verified yetCheck the official source

We have not verified this rule for Arizona yet. Check the official source: azleg.gov.

If an employee quits, when is the last paycheck due?Not verified yetCheck the official source

We have not verified this rule for Arizona yet. Check the official source: azleg.gov.

Final paycheck laws by state · Final paycheck date calculator

Used in: How to fire an employee in your state · Employee no call, no show: what to do · An employee resigned: what to do next

Unused vacation (PTO) at separation

Do you have to pay out unused vacation when someone leaves?Not verified yetCheck the official source

We have not verified this rule for Arizona yet. Check the official source: azleg.gov.

PTO payout laws by state

Used in: How to fire an employee in your state · An employee resigned: what to do next

Do you have to give paid sick leave?Yes, statewideVerified Sep 24, 2026 · 2 official sources
  • Accrual: Arizona earned paid sick time: employees accrue at least one hour for every 30 hours worked. (A.R.S. § 23-372)

    “B. Employees of an employer with fewer than 15 employees shall accrue a minimum of one hour of earned paid sick time for every 30 hours worked,”

    “Beginning July 1, 2017, employees would earn at least 1 hour of sick time for each 30 hours worked;”

    Arizona Legislative Council, ballot analysis of initiative I-24-2016 (Fair Wages and Healthy Families Act), adopted · azleg.gov

    azleg.gov · azleg.gov · verified Sep 24, 2026 · 2 official sources

  • Annual cap 15 or more employees: Employees of employers with 15 or more employees may accrue or use up to 40 hours of earned paid sick time per year (unless the employer sets a higher limit). (A.R.S. § 23-372)

    “A. Employees of an employer with 15 or more employees shall accrue a minimum of one hour of earned paid sick time for every 30 hours worked, but employees shall not be entitled to accrue or use more than 40 hours of earned paid sick time per year, unless the employer selects a higher limit.”

    “employees in companies with 15 or more employees would not be entitled to accrue or use more than 40 hours of sick time each year.”

    Arizona Legislative Council, ballot analysis of initiative I-24-2016 (Fair Wages and Healthy Families Act), adopted · azleg.gov

    azleg.gov · azleg.gov · verified Sep 24, 2026 · 2 official sources

  • Annual cap under 15 employees: Employees of employers with fewer than 15 employees may accrue or use up to 24 hours of earned paid sick time per year (unless the employer sets a higher limit). (A.R.S. § 23-372)

    “B. Employees of an employer with fewer than 15 employees shall accrue a minimum of one hour of earned paid sick time for every 30 hours worked, but employees shall not be entitled to accrue or use more than 24 hours of earned paid sick time per year, unless the employer selects a higher limit.”

    “employees in companies with fewer than 15 employees would not be entitled to accrue or use more than 24 hours of sick time each year”

    Arizona Legislative Council, ballot analysis of initiative I-24-2016 (Fair Wages and Healthy Families Act), adopted · azleg.gov

    azleg.gov · azleg.gov · verified Sep 24, 2026 · 2 official sources

  • Effective date: Arizona earned paid sick time began to accrue on July 1, 2017 (or at the start of employment, if later). (A.R.S. § 23-372)

    “1. Earned paid sick time as provided in this section shall begin to accrue at the commencement of employment or on July 1, 2017, whichever is later.”

    “Beginning July 1, 2017, employees would earn at least 1 hour of sick time for each 30 hours worked;”

    Arizona Legislative Council, ballot analysis of initiative I-24-2016 (Fair Wages and Healthy Families Act), adopted · azleg.gov

    azleg.gov · azleg.gov · verified Sep 24, 2026 · 2 official sources

  • Employer coverage: Arizona's earned paid sick time applies to private employers of any size, including small businesses exempt from the state minimum wage law; the State of Arizona and the United States are not covered employers. (A.R.S. § 23-371)

    “G. "Employer" includes any corporation, proprietorship, partnership, joint venture, limited liability company, trust, association, political subdivision of the state, individual or other entity acting directly or indirectly in the interest of an employer in relation to an employee, but does not include the State of Arizona or the United States.”

    “A small business currently exempt under the state minimum wage law would be covered as an employer for the purposes of the sick time requirements.”

    Arizona Legislative Council, ballot analysis of initiative I-24-2016 (Fair Wages and Healthy Families Act), adopted · azleg.gov

    azleg.gov · azleg.gov · verified Sep 24, 2026 · 2 official sources

Arizona paid sick leave law: full page · Paid sick leave laws by state

At-will employment

Yes. Arizona follows at-will employment, with these exceptions (A.R.S. § 23-1501(A)(2)):

Public policy exception: recognized?Recognized, limitedVerified Sep 24, 2026 · 2 official sources

Arizona's Employment Protection Act replaced the common-law Wagenseller rule: a fired employee has a wrongful termination claim only in the circumstances the statute lists, such as discharge in violation of a state statute or in retaliation for refusing to break the law or for reporting violations. (A.R.S. § 23-1501(A)(3))

“An employee has a claim against an employer for termination of employment only if one or more of the following circumstances have occurred:”

“In response, the Arizona legislature enacted the EPA to spell 11 out the public policy of the state and set forth the circumstances when an employee may 12 bring an action for wrongful termination.”

Noriega v. State of Arizona, No. CV-16-01015-PHX-JJT (D. Ariz. June 22, 2016), citing Wagenseller v. Scottsdale Memorial Hospital, 710 P.2d 1025 (Ariz. 1985), and Galati v. Am. W. Airlines, 69 P.3d 1011 (Ariz. Ct. App. 2003) · govinfo.gov

azleg.gov · govinfo.gov

Implied contract exception: recognized?Recognized, limitedVerified Sep 24, 2026 · 2 official sources

In Arizona employment is severable at will unless there is a written contract; a handbook or manual can create such a contract only if it expresses the intent that it is a contract of employment. (A.R.S. § 23-1501(A)(2))

“Both the employee and the employer must sign this written contract, or this written contract must be set forth in the employment handbook or manual or any similar document distributed to the employee, if that document expresses the intent that it is a contract of employment, or this written contract must be set forth in a writing signed by the party to be charged.”

“The EPA provides that under the public policy of the state an employment 15 relationship is severable at the pleasure of either the employee or the employer, unless 16 both have signed a written contract.”

Noriega v. State of Arizona, No. CV-16-01015-PHX-JJT (D. Ariz. June 22, 2016), describing A.R.S. § 23-1501(A)(2) · govinfo.gov

azleg.gov · govinfo.gov

Good faith and fair dealing exception: recognized?Not verified yetCheck the official source

We have not verified this rule for Arizona yet. Check the official source: azleg.gov.

At-will employment by state

Used in: How to write up an employee (the right way, in your state) · How to put an employee on a performance improvement plan · Employee no call, no show: what to do · Insubordination: what counts, and how to handle it

Service letter (reason for termination)

Do you have to give a written reason for the termination on request?Not verified yetCheck the official source

We have not verified this rule for Arizona yet. Check the official source: azleg.gov.

Used in: How to write up an employee (the right way, in your state) · How to fire an employee in your state

Separation notice

Do you have to give a separation notice when someone leaves?Not verified yetCheck the official source

We have not verified this rule for Arizona yet. Check the official source: apps.azsos.gov.

Used in: How to fire an employee in your state

Arizona topic pages

Final pay after firing, neighbors

StateFinal pay after firing
ArizonaNot verified
CaliforniaImmediately
NevadaNot verified
Utah24 hours
ColoradoNot verified
New MexicoNot verified

Only verified rules are shown. "Not verified" means we have not checked that state's rule yet; open its rulebook for the official source.

What an employee costs in Arizona

Beyond the salary, an employer pays these payroll taxes on each employee. Rates for 2026, from official sources:

A worked example: $40,000 salary

Estimate, before benefits and workers' comp; check with your payroll provider. It assumes a new employer, a full year of wages and the full FUTA credit.

Tax on a $40,000 salaryPer year
Social Security, 6.2% (Topic 751)$2,480
Medicare, 1.45% (Topic 751)$580
Federal unemployment (FUTA), 0.6% of the first $7,000 (Topic 759)$42
Arizona unemployment insurance, new-employer rate 2.00% of the first $8,000 (DOL, July 2026)$160
Estimated total employer taxes$3,262

Estimate: $3,262 is about 8.2% on top of the salary. It leaves out health insurance, retirement contributions, workers' compensation, state disability or paid leave programs and any local taxes.

Federal wage enforcement in Arizona

In FY2021 to FY2025, the U.S. Department of Labor's Wage and Hour Division concluded 603 cases in Arizona (n = 603), finding $18,530,659 in back wages owed to 14,698 employees (DOL enforcement data). Enforcement data is not a violation rate: it shows where federal investigators looked, and many states handle wage claims through their own agencies. Wage violations by industry.

Changes coming in 2027

Changelog

Questions about Arizona employer rules

Is Arizona an at-will state?

Yes. Arizona follows at-will employment, with exceptions. Of the 3 common exceptions, we have verified 2, and 2 are recognized in Arizona (A.R.S. § 23-1501(A)(2)).

Sources (13)

Checked Sep 24, 2026 · How we verify every rule · Report an error