Arizona HR Consulting & Employment Law for Small Businesses

Arizona Earned Paid Sick Time

Arizona's Prop 206 (Fair Wages and Healthy Families Act) requires all employers to provide paid sick time. Employers with 15 or more employees must provide up to 40 hours per year. Employers with fewer than 15 employees must provide up to 40 hours per year as well, with a cap of 24 hours used per year in their case. Leave may be used for medical care, domestic violence, and public health emergencies.

Arizona Minimum Wage Act

Arizona's minimum wage is set above the federal floor and adjusted annually on January 1. The current rate and schedule are posted by the Arizona Industrial Commission. Some cities (like Flagstaff) have enacted higher local minimum wages.

Arizona Civil Rights Act

Arizona's Civil Rights Act mirrors federal anti-discrimination law and applies to employers with 15 or more employees. Enforcement is through the Arizona Civil Rights Division of the Attorney General's office. Arizona also provides protections for genetic testing information (GInA equivalent at the state level).

Arizona Non-Compete Enforceability

Arizona courts enforce non-compete agreements that are reasonable in scope, duration, and geographic area, and that protect a legitimate business interest. Courts apply a balancing test and may modify overly broad agreements rather than voiding them.

1+ Employees: employees

• Arizona minimum wage applies (above federal, adjusted annually)
• Arizona Earned Paid Sick Time: 1 hour per 30 hours worked (up to 40 hours for small, 80 hours for large employers)
• At-will employment broadly recognized

15+ Employees: employees

• Arizona Civil Rights Act anti-discrimination protections
• Federal Title VII, ADA, and ADEA protections apply

50+ Employees: employees

• Federal FMLA applies
• ACA employer mandate
• COBRA obligations

Does Arizona require paid sick leave?

Yes. Arizona's Earned Paid Sick Time law requires all employers to provide paid sick leave. Employers with 15 or more employees must allow up to 40 hours of paid sick time per year. Smaller employers must provide up to 40 hours but employees may only use 24 hours per year. Sick time accrues at 1 hour per 30 hours worked.

What is the Arizona minimum wage?

Arizona's minimum wage is above the federal rate and adjusted on January 1 each year by the Industrial Commission of Arizona. Some Arizona cities such as Flagstaff have enacted higher local minimum wage rates that employers in those jurisdictions must follow.

Are non-competes enforceable in Arizona?

Yes. Arizona courts apply a reasonableness test: duration (typically 1-2 years), geographic scope (limited to areas where the employee worked), and the nature of the business interest protected. Overly broad agreements may be reformed by courts rather than voided entirely.

Does Arizona have a paid family leave program?

No statewide paid family leave program exists in Arizona. Federal FMLA provides 12 weeks of unpaid leave for eligible employees at employers with 50 or more employees. Some employers offer paid parental leave as a voluntary benefit.

What is Arizona's employment termination notice requirement?

Arizona does not require advance notice before terminating an at-will employee. The final paycheck for a terminated employee is due within 3 business days of termination or the end of the next regular pay period, whichever is sooner. Resigning employees who give 5+ days notice are owed final pay on their last day.

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