Arizona has some laws that provide greater protections to employees than federal law, including a higher minimum wage and paid sick leave, but generally follows federal law with respect to topics such as overtime pay, jury duty leave and occupational safety and health.
Select Arizona employment requirements are summarized below to help an employer understand the range of employment laws affecting the employer-employee relationship in the state. An employer must comply with both federal and state law.
An employer must also comply with applicable municipal law obligations affecting the employment relationship, in addition to complying with state and federal requirements.
Key Arizona requirements impacting EEO, diversity and employee relations are:
The Arizona Civil Rights Act (ACRA) provides protections similar to those provided under federal law. The ACRA covers employers with 15 or more employees and prohibits employment discrimination based on protected characteristics including:
With respect to sexual harassment claims, the ACRA covers employers with at least one employee.
The ACRA also prohibits an employer from taking an adverse employment action against employees who make formal complaints, testify or assist/participate in any investigation or hearing into an employer's unlawful discrimination.
The Arizona Equal Pay Law prohibits an employer from paying any employee at wage rates less than the rates paid to employees of the opposite sex in the same establishment for the same quantity and quality of the same classification of work. The law does not, however, prevent an employer from basing pay differences on seniority, length of service, skill, differences in skill or hours of work, lifting restrictions or other reasonable factors other than sex.
The Employment Protection Act protects whistleblowers who:
Be aware that where there is overlap between federal, state and/or local law, complying with the law that offers the greatest rights or benefits to the employee will generally apply.
Key Arizona requirements impacting recruiting and hiring are:
Similar to federal law, Arizona law requires an applicant's written consent in order for an employer to obtain the applicant's credit report for use in making hiring decisions. If the employer makes an unfavorable decision after reviewing the job applicant's credit report, it must disclose to the applicant the name and address of the credit reporting agency that prepared the report.
An Arizona employer may test job applicants for drug and alcohol use when testing has a job-related purpose consistent with business necessity. The employer must have a written policy that is distributed to all prospective employees. The employer may refuse to hire a prospective employee who fails a test or refuses to submit to drug or alcohol testing. The employer is not required to pay for preemployment drug tests.
The Legal Arizona Workers Act (LAWA) prohibits an employer from employing undocumented workers. This prohibition also applies to employers using an independent contractor or subcontractor to obtain labor.
LAWA requires an employer to:
Be aware that where there is overlap between federal, state and/or local law, complying with the law that offers the greatest rights or benefits to the employee will generally apply.
Key Arizona requirements impacting wages and hours are:
Under the Arizona Minimum Wage Act, every covered employer is required to pay employees at least $14.35 per hour. There are exemptions, and a separate minimum wage rate exists for certain employees (e.g., tipped employees).
Child labor laws in Arizona restrict the occupations in which minors may be employed and the number of hours and times during which they may work.
Arizona law prohibits an employer from employing minors in occupations found to be hazardous or detrimental to the well-being of minors unless a variance is granted. Some identified occupations are prohibited for all minors, but others are prohibited only for minors under the age of 16.
With some exceptions, minors under the age of 16 may not work:
Be aware that where there is overlap between federal, state and/or local law, complying with the law that offers the greatest rights or benefits to the employee will generally apply.
Key Arizona requirements impacting pay and benefits are:
Arizona's health care continuation coverage law applies to employers with at least one but fewer than 20 employees. The state law generally follows the federal Consolidated Omnibus Budget Reconciliation Act (COBRA) in terms of qualifying events and maximum periods of coverage. Individuals may be required to pay up to 105 percent of the premium (150 percent during a disability extension) under Arizona law.
Employees may be paid wages in the form of cash, check, draft or money order. All payments must be made in US currency. An employer may pay via direct deposit or electronic paycard under certain circumstances.
Employees must be paid at least twice a month on regular paydays occurring no more than 16 days apart. If an employer's principal location and its payroll systems are centralized outside of Arizona, the employer may pay exempt employees on a monthly basis.
An employer may withhold an employee's wages under the following circumstances:
An employer must provide paper or electronic pay statements to employees who are paid by direct deposit or paycard.
Be aware that where there is overlap between federal, state and/or local law, complying with the law that offers the greatest rights or benefits to the employee will generally apply.
Key Arizona requirements impacting time off and leaves of absence are:
The Fair Wages and Healthy Families Act (FWHFA) allows eligible employees to take paid sick leave for the following reasons:
An employer with 15 or more employees must provide up to 40 hours of paid sick time per year. Smaller employers must provide up to 24 hours per year.
In addition to the FWHFA, an Arizona employer is also required to comply with other leave and time off laws, such as:
Be aware that where there is overlap between federal, state and/or local law, complying with the law that offers the greatest rights or benefits to the employee will generally apply.
Key Arizona requirements impacting health and safety are:
The Smoke-Free Arizona Act prohibits smoking in all public places and places of employment. An Arizona employer must post no-smoking signs at all entrances to buildings.
An Arizona employer generally may not prohibit employees or other individuals from lawfully transporting or storing firearms in the person's locked, personal vehicle or a locked compartment in the person's private motorcycle. The firearm may not be visible from the outside of the vehicle or motorcycle.
Arizona prohibits the use of wireless communication devices while driving, including texting. The law also prohibits an individual from viewing a broadcast or video, or recording or broadcasting a video while driving a motor vehicle in motion on a public roadway or on an off-highway vehicle trail.
Be aware that where there is overlap between federal, state and/or local law, complying with the law that offers the greatest rights or benefits to the employee will generally apply.
Employees who quit their job generally must be paid by the next regular payday. Employees who are fired must be paid within seven business days or by the next regular payday, whichever is earlier.
An employer does not have to pay a separated employee for the value of accrued vacation time or sick leave unless the employer has a policy requiring such payments.
Be aware that where there is overlap between federal, state and/or local law, complying with the law that offers the greatest rights or benefits to the employee will generally apply.
Additional information on organizational exit practices in Arizona can be found in Payment of Wages: Arizona and Does This Law Apply to My Organization in Arizona? Federal requirements can be found in Payment of Wages: Federal.
Jurisdiction Arizona Status This resource is kept under review and updated in line with developments. Updates Updated to reflect an increase in the state minimum wage, effective January 1, 2024.