Arizona employment law overview

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 federal, state, and local law. Where there is overlap, complying with the law that offers the greatest rights or benefits to the employee will generally apply. 

Equal Employment Opportunity (EEO) and worker protections 

Arizona employers may be required to comply with requirements related to EEO and worker protections.   

Fair employment practices 

The Arizona Civil Rights Act (ACRA) provides protections similar to those provided under federal law and prohibits employment discrimination based on protected characteristics including, but not limited to race, color, religion, sex, age, national origin, disability and genetic test results. 

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. 

Equal pay 

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. 

Pay transparency  

Arizona does not have a pay transparency law applicable to private employers. 

Salary history inquiry restrictions 

Arizona does not restrict an employer from inquiring into or relying upon an applicant’s salary history. 

Employee wage disclosure rights 

Arizona does not have a wage disclosure law applicable to private employers. 

Pregnancy accommodation 

Arizona does not have requirements for private employers related to pregnancy accommodation. 

Breastfeeding breaks 

Arizona does not have requirements for private employers related to breastfeeding breaks. 

Access to personnel files 

Arizona law does not require private employers to provide employees with access to their personnel files. 

Whistleblower protections 

The Employment Protection Act protects whistleblowers who: 

• Have disclosed an employer’s violations of the law in a reasonable manner; 
• Have information or a reasonable belief about an ongoing, past or future violation of Arizona law by the employer or a fellow employee; and 
• Made the disclosure either to the employer, an employee reasonably believed to be in a managerial position or an employee of any public agency or political subdivision. 

Scheduling 

Arizona does not have a scheduling law applicable to private employers. 

Recruiting and hiring 

Arizona employers may be required to comply with requirements related to recruiting and hiring.   

Credit checks

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. 

Ban the Box and Fair Chance 

Arizona does not have a state ban-the-box or fair chance law applicable to private employers. 

E-Verify 

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: 

• Register to use E-Verify; 
• Use E-Verify to verify the status of employees hired after December 31, 2007; and 
• Keep records of the verification for the duration of the individual’s employment or three years, whichever is longer. 

Wage and hour 

Arizona employers may be required to comply with certain wage and hour requirements.   

Minimum wage 

Under the Arizona Minimum Wage Act, every covered employer is required to pay employees at least $ 15.15 per hour. There are exemptions, and a separate minimum wage rate exists for certain employees (e.g., tipped employees). 

Overtime 

Arizona does not have a state overtime law applicable to private employers. 

Meal and rest breaks 

Arizona law does not require employers to provide meal or rest breaks to employees. 

Child labor 

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: 

• More than 40 hours in one week when: 1) the employee is not enrolled in school; or 2) school is not in session; 
• More than 18 hours in one week when the employee is enrolled in school and school is in session; 
• More than eight hours in one day when: 1) the employee is not enrolled in school; or 2) on a day when school is not in session, i.e., weekend or break; 
• More than three hours in a school day when the employee is enrolled in school; 
• Between 9:30 p.m. and 6:00 a.m. when school is in session; 
• Between 7:00 p.m. and 11:00 p.m. when school is not in session. 

Pay and benefits 

Arizona employers may be required to follow certain requirements with respect to employee pay and benefits.   

Wage payment methods 

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. 

Pay frequency and lag time 

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. 

Pay deductions 

An employer may withhold an employee’s wages under the following circumstances: 

• If required by state or federal law; 
• With the employee’s prior written authorization; or 
• Where the wage amount is under dispute. 

Pay statements 

An employer must provide paper or electronic pay statements to employees who are paid by direct deposit or paycard. 

Wage theft 

Arizona does not have a wage theft law applicable to private employers. 

Health care continuation 

Arizona’s health care continuation coverage law generally follows the federal Consolidated Omnibus Budget Reconciliation Act 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. 

Temporary disability insurance 

Arizona does not have requirements for private employers related to temporary disability insurance. 

Time off and leaves of absence 

Arizona employers may be required to follow certain requirements with respect to time off and leaves of absence. 

Family and medical leave 

Arizona does not have a state family and medical leave law applicable to private employers. 

Paid sick leave 

The Fair Wages and Healthy Families Act (FWHFA) allows eligible employees to take paid sick leave for the following reasons: 

• The employee’s or a family member’s illness, injury or health condition; need to seek medical diagnosis, care or treatment; or need for preventive care; 
• Closure of the employee’s workplace or a child’s school or place of care due to a public health emergency; 
• The employee’s or a family member’s presence in the community may jeopardize the health of others due to exposure or suspected exposure to a communicable disease; and 
• Absences due to domestic violence, sexual violence, abuse or stalking of an employee or a family member. 

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. 

Other time off requirements 

In addition to the FWHFA, an Arizona employer may also be required to comply with other leave and time off laws including, but not limited to crime victim leave, voting leave, jury duty leave and military leave. 

Health and safety 

Arizona employers may be required to follow certain requirements with respect to employee health and safety.   

Occupational safety and health 

Arizona operates a health and safety program under agreement with the Occupational Safety and Health Administration. The Arizona Occupational Safety and Health Act applies to most private and public employees in Arizona. 

Employers are required to furnish to each of their employees’ employment and a place of employment that are free from recognized hazards that are causing or are likely to cause death or serious physical harm to the employees. 

Drug and alcohol testing 

Most private employers in Arizona may voluntarily establish a drug and alcohol testing program for any job-related purpose consistent with business necessity.  

Employers that follow the state law governing workplace drug and alcohol testing programs will be protected from an array of potential legal actions brought by employees or others based on the results of a positive drug or alcohol test or from failure to test for drugs or alcohol. 

Smoke-free workplace 

The Smoke-Free Arizona Act prohibits smoking in all public places and places of employment, with some exceptions. An Arizona employer must post no-smoking signs at all entrances to buildings. 

Weapons in the workplace 

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. 

Safe driving practices 

Arizona prohibits the use of wireless communication devices while driving, including texting, except in voice-based or hands-free mode. 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. 

Organizational exit 

Arizona employers may be required to follow certain requirements when employees exit the organization.   

Final pay 

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. 

Mass layoffs 

Arizona does not have its own version of the federal WARN Act. 

AI in employment 

Arizona does not have a law related to AI in employment applicable to private employers.