It’s important to stay up to date on all of the employment laws in your state so that you can maintain compliance in your business. We did some of the hard work for you and put some of the most important Arizona statutes in one place so you can either learn them for the first time or give yourself a refresher. 

However, remember that our summary is not qualified legal advice, laws are always subject to change, and they can vary from municipality to municipality. 

It’s up to you to make sure you’re compliant with all laws and statutes in your area. Consult with a qualified lawyer and/or your local government agencies if you have questions or concerns. 

Here are a few Arizona labor laws every small business owner should know.

Resources

First, here are a few helpful links and resources for you to bookmark and refer back to:

Leave

  • Sick Days: All employers are required to provide paid sick leave to employees. 
  • Medical Leave: Employers may be required to provide leave in accordance with the federal Family and Medical Leave Act
  • Vacation Leave: Employers are not required to provide vacation leave but must comply with their own established policies if they choose to implement one. 
    • Employers can implement a “use-it-or-lose-it” policy that requires employees to use their vacation time by a set date, as long as employees have reasonable time to use their vacation time. 
    • The amount of vacation time an employee can accrue may be capped by the employer.
    • There are no laws regarding whether or not an employer can deny or restrict the payment of accrued vacation upon separation of employment. 
  • Jury Duty: Employers do not have to pay employees for time spent responding to a jury summons
    • Employers may not require employees to use any available leave for responding to a jury summons.
    • Employees cannot lose seniority while serving as a juror. 
    • Employers who do not allow employees to comply with a jury summons will be charged with a class 3 misdemeanor.
  • Holiday Leave: Private employers are not required to provide paid or unpaid holiday leave, but must comply with any established policies if they choose to implement them. 
  • Voting Leave: Employers must provide paid time off to vote in primary and general elections as long as the employee provides notice prior to election day. 
    • Employers must only provide enough paid leave for the employee to have 3 hours to vote between either the opening of polls and the start of their shift or the end of their shift and the closing of the polls. 
    • Employers may specify when an employee can take time off to vote. 
  • Bereavement Leave: Employers are not required to provide bereavement leave, but may be required to comply with any bereavement policy they may have. 

Final Paycheck

  • Employers must pay terminated or laid off employees their final paycheck within 7 days or by the next payday, whichever comes first. 
  • Employees who resign or are suspended must be paid their final paycheck by the next scheduled payday. 

Minimum Wage

  • The current minimum wage in Arizona is $11. 
  • The minimum wage will increase to $12 on January 1, 2020, and will increase each year beginning on January 1, 2021 based on the increase in the cost of living from the previous year. 

Tipped Wages

  • Employers may take a $3.00 tip credit towards its minimum wage obligation for tipped employees. 
  • Employers who choose to do so must ensure employees are paid the regular minimum wage rate when the tipped wage rate is combined with earned tips. 
  • Tip pooling, sharing or splitting is allowed under Arizona law. Employers may require tipped employees to share tips with non-tipped employees, but the employer may not pay the tipped minimum wage rate to non-tipped employees. 

Child Labor

  • Minors 14 and 15 years of age may not work in these occupations
  • Minors 14 and 15 years of age may only work within the following hours:
    • While school is in session
      • A maximum of 18 hours a week
      • A maximum of 3 hours a day 
      • No earlier than 6 a.m. and no later than 9:30 p.m. on a school day
    • While school is out of session
      • A maximum of 40 hours a week
      • A maximum of 8 hours a day
      • No earlier than 6 a.m. and no later than 11 p.m.
  • Minors 16 and 17 years of age may not work in these occupations unless a variance is granted. 

Meal and Rest Breaks, Overtime

  • There are no laws requiring an employer to provide a meal period or break, so the federal law applies. 
    • Under federal law, employers are not required to provide meal periods or breaks, but if they do, breaks less than 20 minutes must be paid.
    • Meal periods, usually 30 minutes or longer, do not need to be paid if the employee is free to do as they wish during the break. 

Employment Discrimination

  • Arizona and federal laws prohibit discrimination in employment on the basis of race, color, religion, sex, age, disability, national origin, pregnancy, family medical leave, and veteran status.
  •  Employers with fewer than 15 employees may be exempt from some but not all discrimination laws.
  • Click here to read our blog on what acceptable and unacceptable questions to ask during an interview.       

Termination

Arizona is an employment-at-will state, which means that without a written employee contract, employees can be terminated for any reason at any time, provided that the reason is not discriminatory and that the employer is not retaliating against the employee for a rightful action. 

Shift Scheduling

There are no laws regarding shift scheduling in Arizona. 

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