Arizona earned paid sick time rules for employers
Reviewed Sep 24, 2026 3 official sources How we verify
Not a substitute for the advice of an attorney. General information; laws vary by state. Terms of use
The answer
Yes, private employers of any size
Arizona employees accrue at least 1 hour of earned paid sick time for every 30 hours worked. Employers with 15 or more employees may cap accrual and use at 40 hours a year; smaller employers at 24 hours (A.R.S. 23-372). (A.R.S. 23-372, Accrual of earned paid sick time)
“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,”
What it means for Arizona employers
Arizona's sick time law came from a 2016 ballot initiative, and A.R.S. 23-371 defines employer broadly: corporations, partnerships, LLCs, sole proprietors and political subdivisions are covered, including small businesses that are exempt from the state minimum wage. Only the State of Arizona and the United States are left out as employers. (A.R.S. 23-371, Definitions)
The 15-employee line decides the cap, and the statute gives a precise tie-breaker for businesses whose payroll swings. Everyone working for pay counts, whether full-time, part-time or temporary. If the count moves above and below 15, the 40-hour tier applies once the employer had 15 or more on payroll for some part of a day in each of 20 different calendar weeks in the current or the preceding year. The weeks do not have to be consecutive. (A.R.S. § 23-372)
Paid sick time is paid at the employee's normal hourly rate and with the same benefits, including health coverage, and never below the federal or Arizona minimum wage (A.R.S. 23-371(D)). Overtime-exempt employees are treated as working 40 hours a week for accrual, or their shorter normal week. (A.R.S. 23-371, Definitions)
Exceptions and special cases
- New hires: an employer may make someone hired after July 1, 2017 wait until the 90th calendar day of employment before using accrued time, unless the employer allows earlier use (A.R.S. 23-372(D)(2)). (A.R.S. 23-372, Accrual of earned paid sick time)
- Carryover or cash-out: unused time carries into the next year, still subject to the 24 or 40 hour use limit. Instead of carrying it over, the employer may pay out the unused time at year end and give the employee at least the required amount for immediate use at the start of the new year. (A.R.S. § 23-372)
- An existing PTO policy that gives at least as much paid leave, usable for the same purposes and under the same conditions, satisfies the law without a separate sick bank (A.R.S. 23-372(E)). (A.R.S. 23-372, Accrual of earned paid sick time)
- Separation: nothing in the article requires paying out unused sick time at termination, resignation or retirement (A.R.S. 23-372(F)). But a rehire within nine months of separation gets the unused balance reinstated, and a successor employer that keeps the workforce keeps the balances too. (A.R.S. 23-372, Accrual of earned paid sick time)
Worked examples
A landscaping company that peaks at 18 workers
The crew is 18 from April through October (about 30 weeks) and 9 the rest of the year. Because it had 15 or more on payroll in at least 20 calendar weeks, the 40-hour tier applies to everyone for the year, not only in peak months. (A.R.S. § 23-372)
A part-time barista at a 6-person cafe
At 20 hours a week, the barista earns 2 hours of sick time every three weeks (60 hours worked). The 24-hour yearly cap for an employer under 15 is reached after 720 hours worked, which is 36 weeks at that schedule. (A.R.S. 23-372, Accrual of earned paid sick time)
Rehired after the holiday season
A seasonal employee leaves on January 5 with 11 unused hours and is rehired on August 1 of the same year. That is within nine months, so the 11 hours come back and accrual restarts on day one. (A.R.S. § 23-372)
How to act on it
Paid sick leave: Arizona and neighboring states
Each state links to its rulebook. Only rules we verified are shown.
| State | Statewide paid sick leave |
|---|---|
| Arizona | Yes, statewide |
| California | Yes, statewide (full page) |
| Nevada | Pending verification |
| Utah | Pending verification |
| Colorado | Yes, statewide (full page) |
| New Mexico | Yes, statewide (full page) |
Questions about Arizona paid sick leave rules
How much sick time does a small Arizona business have to give?
With fewer than 15 employees, the accrual is still 1 hour per 30 worked, but the employer may cap accrual and use at 24 hours a year unless it chooses a higher limit (A.R.S. 23-372(B)).
Can an Arizona employer make new employees wait to use sick time?
Yes. For employees hired after July 1, 2017, the employer may require a wait until the 90th calendar day of employment before accrued time is used (A.R.S. 23-372(D)(2)).
Is unused sick time paid out when an Arizona employee quits?
Not required. A.R.S. 23-372(F) says the article does not require reimbursement for unused sick time at separation. Unused time is reinstated if the same employer rehires the person within nine months.
Are Arizona public employers covered?
Political subdivisions such as cities and counties are included in the definition of employer; the State of Arizona and the United States are not (A.R.S. 23-371(G)).
Can an Arizona employer lend sick time before it is earned?
Yes, at its discretion (A.R.S. 23-372(D)(7)). It may also front-load the full year's expected accrual at the beginning of the year.
The verified rules behind this page (5)
- Accrual: Arizona earned paid sick time: employees accrue at least one hour for every 30 hours worked. (A.R.S. § 23-372; verified Sep 24, 2026)
- 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; verified Sep 24, 2026)
- 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; verified Sep 24, 2026)
- 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; verified Sep 24, 2026)
- 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; verified Sep 24, 2026)
Sources (3)
Checked Sep 24, 2026 · How we verify every rule · Report an error
General information, not legal advice. Not a substitute for the advice of an attorney. 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. Report an error