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.
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.”
“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.”
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.
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.
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.
Used in: How to fire an employee in your state · An employee resigned: what to do next
Paid sick leave
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;”
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.”
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”
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;”
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.”
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: Recognized, limited (A.R.S. § 23-1501(A)(3))
- Implied contract: Recognized, limited (A.R.S. § 23-1501(A)(2))
- Good faith and fair dealing: not verified yet (check the official source)
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.”
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.”
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.
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
| State | Final pay after firing |
|---|---|
| Arizona | Not verified |
| California | Immediately |
| Nevada | Not verified |
| Utah | 24 hours |
| Colorado | Not verified |
| New Mexico | Not 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:
- Social Security: 6.2% of wages, up to $184,500 per employee in 2026 (Publication 15).
- Medicare: 1.45% of all wages, with no wage base limit (Topic 751).
- Federal unemployment (FUTA): 6.0% of the first $7,000 of each employee's wages, with a credit of up to 5.4% for state unemployment taxes paid, so usually 0.6% (Topic 759).
- FUTA credit reduction: Arizona is not on the DOL list for 2025 (final) or 2026 (potential), so the full 5.4% credit is available if state unemployment taxes are paid in full and on time (U.S. DOL, FUTA credit reductions; Topic 759).
- Arizona unemployment insurance: taxes apply to the first $8,000 of each employee's wages. Rates for experience-rated employers run from 0.03% to 8.36%; the new-employer base rate is 2.00%. Source: U.S. DOL, Significant Provisions of State UI Laws, effective July 2026, page 1. The DOL notes that higher rates may apply by industry and that the table "is not an official interpretation of state UI laws". Find the Arizona unemployment agency.
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 salary | Per 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
- Minimum wage, from Jan 1, 2027: the new amount is not announced yet (azleg.gov).
Changelog
- Sep 24, 2026: first verified, 8 rules.
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)
- U.S. DOL WHD State Payday Requirements, footnote 3
- A.R.S. 23-351(A)
- A.R.S. § 23-372
- Arizona Legislative Council, ballot analysis of initiative I-24-2016 (Fair Wages and Healthy Families Act), adopted
- A.R.S. § 23-371
- A.R.S. § 23-1501(A)(2)
- Noriega v. State of Arizona, No. CV-16-01015-PHX-JJT (D. Ariz. June 22, 2016), describing A.R.S. § 23-1501(A)(2)
- IRS Publication 15 (2026), Circular E, Employer's Tax Guide
- IRS Topic no. 751, Social Security and Medicare withholding rates
- IRS Topic no. 759, Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return
- U.S. DOL, Employment and Training Administration: FUTA credit reductions
- U.S. DOL, Office of Unemployment Insurance: Significant Provisions of State Unemployment Insurance Laws, effective July 2026
- U.S. Department of Labor: State labor offices
Checked Sep 24, 2026 · How we verify every rule · Report an error