(650) 332-8623Arizona Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More (2025)
Discover essential Arizona labor laws covering wages, breaks, and overtime in this comprehensive 2025 guide for employees and employers alike.
What’s New in 2025?
Arizona Meals and Breaks
No LawFor Meal Breaks
No state-specific law mandates meal breaks in Arizona.
Employers may choose to provide them at their discretion.
20 MinutesFor Rest Breaks
- Federal law does not require breaks; however, the DOL states that breaks under 20 minutes must be paid.
- Breaks exceeding 30 minutes are generally unpaid. If the employee must remain at their post during the break, that break must be paid.
Arizona Leave and Paid Time Off (PTO)
Employers are required to provide paid sick leave.
Employees earn one hour of paid sick leave for every 30 hours worked, up to 40 hours per year for businesses with over 15 employees, and up to 24 hours per year for businesses with fewer than 15 employees. This leave can be used for personal illness or to care for a family member.
Employers are required to provide paid sick leave. Employees earn one hour of paid sick leave for every 30 hours worked, up to 40 hours per year for businesses with over 15 employees, and up to 24 hours per year for businesses with fewer than 15 employees.
Arizona does not mandate vacation leave; policies vary by employer, and if offered, must be outlined in employee contracts.
Arizona does not require employers to provide bereavement leave. Policies regarding bereavement leave are left to the discretion of individual employers.
There are no state laws mandating holiday leave in Arizona. Employers can choose whether or not to provide paid time off for holidays.
Employers must allow time off for jury duty but are not required to pay employees during this leave.
Employees are entitled to paid leave to vote, with a requirement to request this leave before election day. Employees should receive 3 consecutive hours to vote during polling hours.
Employers with 50 or more employees must provide unpaid leave for employees who are victims of domestic violence, sexual assault, or stalking, primarily for legal proceedings or obtaining protective orders.
There are no state laws mandating emergency response leave in Arizona. Employers may choose to establish their own policies in this area.
State employees are entitled to 5 days of paid leave for bone marrow donation and 30 days of paid leave for organ donation, with verified documentation.
There are no state requirements for school leave in Arizona. Employers are not mandated to provide leave for employees to attend school-related activities.
Employers must grant military leave in accordance with state law and the federal USERRA, ensuring employees can return to their jobs without loss of benefits after military service.
Arizona Wages and Overtime
$14.70 /hourMinimum Wage
Arizona’s minimum wage is currently $14.35, set to increase to $14.70 on January 1, 2025, with annual adjustments based on the cost of living.
$11.70 /hourTipped Minimum Wage
Tipped employees may receive a cash wage of $3.00 less than the minimum wage, provided their total earnings meet or exceed the state minimum wage.
Employers cannot require tipped employees to share tips with non-tipped staff.
Semi-MonthlyPay Frequency
Employers must designate two or more paydays each month, not more than 16 days apart.
Standard wages must be paid within 5 business days after the end of the pay period, while overtime wages must be paid within 16 days.
1.5x hourlyOvertime Rate
There are no specific state laws governing overtime; federal laws apply.
Under the Fair Labor Standards Act (FLSA), employees are eligible for overtime if they work more than 40 hours in a week, earning 1.5 times their regular pay.
Cities and other municipalities in Arizona have the authority to establish their own minimum wage rates. As of 2024, the local minimum wage rates are as follows:
- Flagstaff: $17.40 per hour (set to increase to $17.85 on January 1, 2025)
- Tipped employees $15.90 (set to increase to $16.85 on January 1, 2025)
- Tucson: $14.35 per hour (set to increase to $15.00 on January 1, 2025)
In addition to these local rates, the statewide minimum wage is scheduled to increase to $14.70 per hour on January 1, 2025.
Arizona does not have a broader subminimum wage category for individuals with disabilities, meaning all employees must be paid at least the applicable minimum wage unless they fall under specific exemptions.
Under Arizona’s minimum wage law, certain employees and employers are exempt from the state’s minimum wage requirements. These exemptions include:
- Tipped Employees: Employers can pay tipped employees a base wage of up to $3 less than the minimum wage, as long as the total of their base wage plus tips equals at least the minimum wage.
- Family Business: Employees who work for their parents or siblings in a family-owned business are exempt.
- Babysitters: Casual babysitters are exempt from the minimum wage requirements, while regular nannies are not.
- Small Businesses: Businesses generating $500,000 or less in gross annual revenue are exempt.
- Government Employees: Employees working for state or federal government are exempt, as they are governed by federal employment laws.
- Other Exemptions: Additional exemptions include certain farm workers, workers with disabilities, and employees under the age of 20 during their first 90 consecutive calendar days of employment.
It’s important to note that even if an employee or employer is exempt from the Arizona minimum wage, they may still be subject to the federal minimum wage of $7.25 per hour, unless a higher state or local minimum wage applies.
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Arizona Prevailing Wages
Arizona lacks a state-ordered prevailing wage law. However, when federal funding is involved in a public works construction project, the requirements of the Davis-Bacon Act may apply.
The Davis-Bacon and Related Acts apply to contractors and subcontractors working on federally funded or assisted contracts exceeding $2,000 for the construction, alteration, or repair (including painting and decorating) of public buildings or public works.
Under this law, contractors and subcontractors must pay their laborers and mechanics no less than the locally prevailing wages and fringe benefits for similar work on comparable projects in the area.
Construction workers in state-funded projects receive the minimum wage (set to increase to $14.70 per hour on January 1, 2025). This wage applies to most employees in the state and does not include additional benefits such as health insurance, paid time off, or retirement contributions. Workers in Flagstaff receive the highest minimum wage in the state, set to increase to $17.85 per hour on January 1, 2025 for standard workers.
For more detailed information, you can refer to the Arizona Industrial Commission or other official state resources
Arizona Prevailing Wage Resources
Arizona Child Labor Laws
14-15 Years
Laws for Ages 14 and 15
Minors aged 14 and 15 are generally allowed to work in certain non-hazardous jobs, but they require a work permit issued by their school. Their work hours are limited and must adhere to the aforementioned restrictions.
16-17 Years
Laws for Ages 16 and 17
Minors aged 16 and 17 do not need work permits but must follow hour limitations during school days. They are permitted to work in a wide range of jobs, but cannot work in hazardous occupations such as:
- Manufacturing or storing explosives (except in retail)
- Selling or manufacturing ammunition
- Mine or quarry occupations
- Wood logging
- Construction services
- Boiler, furnace, or engine rooms
- Food processing
- Laundering services
Additionally, youths are not allowed to operate machinery like power tools and vehicles, work with radioactive substances, or engage in meat slaughtering.
< 18 Years
Laws for Children Under 18
Child labor laws in Arizona are enacted to protect the rights and prevent the exploitation of minors. No child under 16 can work more than three hours on a school day when school is in session or more than eight hours on a non-school day, totaling 18 hours per week.
Additionally, minors under 16 cannot work before 6:00 a.m. or after 9:30 p.m. on school nights, but may work until 11:00 p.m. when there is no school the next day.
Exemptions
Hazardous Occupations
Arizona child labor laws exempt the following youth from minimum age requirements for hazardous occupations:
- Children employed by their relatives (parent, grandparent, aunt, etc.)
- Those who work as child performers in film, theater, radio, or television
- Those enrolled in career education programs
- Those enrolled in vocational or technical training school programs
Other Essential Arizona Labor Laws
Health and Safety Standards in Arizona
In Arizona, employers must…
- Provide a safe working environment free from recognized hazards.
- Comply with OSHA standards and regulations enforced by ADOSH.
- Report work-related fatalities, hospitalizations, amputations, or eye losses to ADOSH within specified timeframes
In Arizona, employees should…
- Be aware of their rights to a safe workplace and report unsafe conditions.
- Utilize available resources on the ADOSH website for training on safety protocols.
- Contact ADOSH to report unsafe working conditions or seek guidance on safety regulations.
Report health and safety violations (unsafe working conditions) in Arizona to…
- Employees: ADOSH Report a Fatality or Severe Injury Form
- Employees: ADOSH Main Page
- Employers: ADOSH Safety and Health Compliance
- Employers: Arizona State Plan
Hiring and/or Firing Employees in Arizona
Hiring practices in Arizona are governed by some of the more stringent state labor laws, controlling recruitment, hiring, and onboarding.
Employee termination and resignation in Arizona is subject to specific legal requirements and notice obligations, including considerations for notice periods, severance pay, and the state’s at-will employment doctrine.
Arizona is an at-will employment state, meaning employers can terminate employees for any reason (with exceptions) and employees can resign without notice. Terminations must not be discriminatory or retaliatory.
Arizona is a right-to-work state, meaning employees cannot be required to join or support a union as a condition of employment.
Employers must conduct background checks for certain positions, such as teachers and healthcare workers, often requiring a fingerprint clearance card. Drug testing is allowed, but employers must adhere to strict guidelines, including providing a written policy and respecting confidentiality.
Arizona prohibits job discrimination based on race, color, religion, sex, age, national origin, disability, or genetic testing results, ensuring equal opportunities in hiring and employment practices.
Anti-Discrimination Laws in Arizona
Employers in Arizona may not discriminate against job applicants based on various protected characteristics, ensuring fairness in the hiring process.
Employers in Arizona may not discriminate against job applicants based on…
- Race
- Color
- Religion
- Sex
- Age
- National origin
- Disability
- Genetic testing results
Employee Resignation or Termination in Arizona
Arizona operates under at-will employment, meaning employers can terminate employees at any time, and employees can choose to resign at any time. While this provides flexibility for both parties, it is crucial for employers to ensure that terminations are not based on discriminatory reasons or retaliatory actions against employees.
After termination, employers are required to pay laid-off or terminated employees their final paycheck within 7 days or by the next scheduled payday, whichever comes first. Employees who resign or are suspended must also receive their final paycheck by the next scheduled payday. Although there is generally no statutory requirement for notice of termination, contractual agreements may specify notice periods. Severance pay is not mandated by state law unless stipulated in an employment contract.
Unemployment Benefits in Arizona
Workers in Arizona are eligible for unemployment benefits if they…
- Are unemployed through no fault of their own.
- Have worked in Arizona during the past 12 months and earned a minimum amount of wages determined by Arizona guidelines.
- Are actively seeking work each week while collecting benefits.
Use this website to start your application for unemployment benefits in Arizona:
Arizona Department of Economic Security
COBRA Benefits in Arizona
Separated employees in Arizona may extend employer-provided health care coverage through COBRA, which stipulates…
- COBRA provides the right to continue health insurance for a limited time after job loss.
- Arizona’s Mini-COBRA allows for continuation of disability insurance coverage.
- Employers must include a notice of the right to continue coverage in their disability insurance policy.
Final Paychecks in Arizona
Separated employees in Arizona must receive their final paychecks in accordance with state law, which outlines specific requirements for timely payment:
- Employers are required to pay terminated or laid-off employees their final paycheck within 7 days of termination, 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.
- The requirement ensures that all employees receive their earned wages promptly after separation.
- Adhering to these timelines helps maintain compliance with state labor laws.
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Arizona Recordkeeping Requirements
Employers in Arizona are required to maintain various employment and payroll records for specified periods. Here are Arizona’s key recordkeeping requirements, broken out by the required retention duration for each record type.
1 Year
Employers must retain these documents for at least one year:
- Employee benefits data (retain for a minimum of one year after plan termination).
- All employment records (retain for a minimum of one year after terminating an employee).
2 Years
Employers must retain these documents for at least two years:
- Basic employment and earnings records (time cards, wage rate tables, etc.).
- Documentation showing why employees of different genders may receive different wages.
3 Years
Employers must retain these documents for at least three years:
- Payroll records (including copies of each employee’s I-9).
- Certificates, notices, and collective bargaining agreements.
- Employment contracts.
- Sales and purchase agreements.
- FLSA records.
4 Years
Employers must retain these documents for at least four years:
- Personnel files.
5 Years
Employers must retain these documents for at least five years:
- Workers’ compensation and/or injury records.
6+ Years
Employers must retain these documents for six years or more:
Penalties for Labor Law Noncompliance in Arizona
Up to $1,000Wage Violations
Employers that intentionally or repeatedly violate minimum wage or overtime pay requirements may face civil penalties of up to $1,000 per violation.
Up to $10,000Willful FLSA Violations
Willful violations of the Fair Labor Standards Act (FLSA) can result in criminal prosecution, with fines reaching up to $10,000. A second conviction may lead to imprisonment.
Up to $10,000Child Labor Act Violations
An employer who violates child labor laws may receive a cease and desist order, along with a civil penalty of $1,000, with other penalties reaching up to $10,000.
Up to $161,323OSHA Violations
An Occupational Safety and Health Administration (OSHA) violation can incur penalties of up to $16,131 per violation. For willful or repeated violations, the fine can increase to up to $161,323 per violation.
In Arizona, labor law violations are investigated and addressed by…
- Arizona Division of Labor’s Department of Economic Security
Enforcement of labor laws in Arizona includes investigations initiated by complaints from employees, competitors, or the public. Violations can be reported to the Arizona Division of Labor through an online complaint system or by contacting their office directly. The division has the authority to conduct audits and inspections to ensure compliance.
Employers should remain informed about labor laws and maintain compliance to avoid potential penalties and ensure fair and lawful practices in the workplace.
Further Details on Other Arizona Labor Laws
Overtime Exemptions
- Salary Threshold Increases: The U.S. Department of Labor will raise the salary threshold for overtime exemptions to $1,128 per week (about $58,656 annually) starting January 1, 2025, expanding overtime eligibility for more workers.
- Impact on Employment: This change aims to protect more employees by ensuring that they receive overtime pay for additional hours worked, promoting fair compensation practices.
Minimum Wage Increases
- Statewide Minimum Wage: Arizona’s minimum wage will increase to $14.70 per hour on January 1, 2025, reflecting a 35-cent adjustment due to a 2.5% inflation rate as mandated by Proposition 206.
- Flagstaff’s Higher Minimum Wage: Flagstaff will implement a higher minimum wage of $17.85 for standard workers and $16.85 for tipped workers, effective January 1, 2025, emphasizing local commitment to higher wage standards.
As of January 1, 2024, Arizona’s minimum wage is $14.35 per hour, which will increase to $14.70 on January 1, 2025.
Additionally, local jurisdictions can set higher minimum wages, with Flagstaff’s minimum wage reaching $17.85 for standard workers and $16.85 for tipped workers, also effective January 1, 2025.
Arizona does not have a state-specific law mandating meal breaks. Employers may choose to provide them at their discretion.
However, federal guidelines stipulate that breaks of less than 20 minutes must be paid, while breaks longer than 30 minutes are generally unpaid, provided the employee is free to use their time as they wish.
Employers in Arizona are required to provide paid sick leave.
Employees earn one hour of paid sick leave for every 30 hours worked, with a maximum of 40 hours per year for businesses with over 15 employees, and 24 hours per year for those with fewer than 15 employees.
This leave can be used for personal illness or to care for a family member.
Arizona follows federal law regarding overtime, meaning employees are entitled to 1.5 times their regular pay for hours worked over 40 in a workweek.
There are no specific state laws governing overtime rates, so employers must comply with the Fair Labor Standards Act (FLSA).
