Arizona Labor Laws: Everything You Need to Know

Arizona Labor Laws hold important information for Arizona workers. Arizona state laws set the standards for labor laws. The law states the minimum pay requirements and laws against discrimination.

The majority of private-sector workers in Arizona are employees "at-will." Employment on an "at-will" basis means the employment is not covered by a written contract or bargaining agreement, and the employment relationship may be ended (i) for any reason not prohibited by law or for no reason, (ii) at any time, (iii) by either the employee or the employer, and (iv) with or without cause.

Wage and Hour Laws in Arizona    

The federal Fair Labor Standards Act (FLSA) and Arizona state law set the wage and hour standards for businesses. This includes the lowest pay permitted by law, overtime, and other wage securities. Businesses must pay the lowest pay permitted by law relevant to workers, regardless of whether set by government, state, or nearby law.

In Arizona, the lowest pay permitted by law ($10.00) per hourly rate. The government law is ($7.25) per hourly rate. Arizona representatives must be paid the lowest pay permitted by law.

Arizona’s lowest pay permitted by law will increment in consequent years as takes after:

  • Jan. 1, 2018: $10.50
  • Jan. 1, 2019: $11.00
  • Jan. 1, 2020: $12.00

Starting Jan. 1, 2021, the lowest pay permitted by law will increment by the rate typical for basic cost items.

If a worker receives tips as a part of his or her wages, the business can pay the employee the lowest pay permitted by law. As of Jan. 1, 2018, this amount is $7.50. If the tipped wage, in addition to tips, does not meet the lowest pay permitted by law ($10.50 as of Jan. 1, 2018), the employer is required to compensate for any shortfall. Employer may just pay the lowest pay permitted by law to workers who usually and consistently get tips from clients.

Employees are considered to get tips “usually and routinely” if these tips are received in a steady and intermittent premise. Arizona law expect businesses to give notice to employees when they are enlisted to receive the lowest pay permitted by law. In this case, the employee will be paid the lowest pay permitted by law or any wage more noteworthy than the tipped pay permitted by law.

The business must give tipped representatives composed notice each payroll interval of the sum every hour.  Arizona businesses must pay employees time and a half if they work over 40 hours in seven days.  

Tip pooling and sharing

In Arizona, labor laws require businesses to allow workers to pool, offer, or split tips. The sum every worker receives after tips have been divided is viewed as the tip for the employee, for detailing purposes.

Employers may require employees who usually and frequently receive tips to split tips with other employees who don't generally and consistently get tips. The employer may not pay the lowest pay permitted by law to the representatives who don't generally and frequently get them.

Federal Law: Paid versus Unpaid Breaks 

Under Arizona state law, employers must pay for the entire length of time worked, including time that an employer may assign as "breaks." Regardless of whether the business alludes to this time as a meal break, the employee is qualified to be paid for this period. Arizona state law additionally expects employers to pay for any short breaks an employee is permitted to take during the day. Breaks from five (5) to twenty (20) minutes are considered part of the workday.

A worker may not be permitted to leave the work site during a meal break. A meal break is "genuine" if it goes on for no less than 30 minutes. Shorter breaks may likewise qualify; however, this depends upon the conditions. State law requires that a business pay for certain time, not extending past these rules.

No Arizona Law Requires Meal or Rest Breaks  

In Arizona, businesses must take adhere to the state law.  Although breaks are not required, businesses must pay employees for the time they spend working and for shorter breaks amid the day.

A business that gives a more extended meal break does not need to pay the worker for that time.

Employment Contracts

Most non-union representatives are not secured by a signed work contract or agreement stated to depict the length of an employee’s work and occupation obligations.

  1. An agreement signed by the employer and the worker.
  2. An agreement in an employee handbook or manual expressly stating that it is intended to be an employment contract.
  3. A written document that the employer executes stating the employee will be utilized for a predetermined certain timeframe."

What an Employee Should Know About His Paycheck

"Most employers are required to pay the worker:

  1. No less than twice every month
  2. Not over 16 days after separated
  3. On frequently planned paydays"

If the business pays compensation via programmed store or finance check cards, the business must supply the employee with a statement of wages and withholdings.

"A business can withhold any bit of a worker's wages if:

  1. It is required or authorized to do as so by court arrangement for common judgment or child support payments.
  2. It has written approval from the employee (for instance, a loan guarantee or charitable donation)
  3. There is a reasonable disagreement with regards to the amount of wages due the employee, only the amount in question might be withheld."

If an employee is terminated, the business must pay all wages due inside seven working days, or toward the finish of the following consistent payroll interval, whichever is sooner. Under Arizona law, "compensation" incorporates commissions, pay paid by the hour or by the piece. Severance pay must also be sent out if the organization offers them.


Employers are required to pay nonexempt employees 1½ times the employee’s regular hourly rate for any hours worked over 40 during any single workweek. Overtime cannot be offset by working fewer hours in the second week of the pay period.

Discrimination and Harassment Laws in Arizona       

Arizona and federal laws restrict discrimination in workplace on the basis of race, religion, sex, age, disability or national origins. Employers with less than 15 employees might be excluded from a few, however, not all discrimination laws.

Employers are likewise disallowed from discriminating against employees because of pregnancy, family medical leave and veteran status. Laws protect workers in regard to filing complaints against a business for discrimination.

Harassment based any of these protected characteristics is also illegal. The law characterizes harassment as unwelcome remarks or activities that make an unfriendly or hostile workplace. Sexual harassment is the most well-known kind of harassment. Harassment may likewise be founded on handicap, race, and other protected characteristics.

Claims must be documented as follows:

  • Equal Employment Opportunity Commission (EEOC)— A claim must be filed within 300 days of claimed discrimination act, however, the due date may be 180 days from the alleged discrimination act.
  • Arizona Civil Rights Division (ACRD) of the Attorney General's Office—A claim must be filed within180 days of alleged discrimination act
  • An examination is for the most part directed by the office
  • At no cost to the individual documenting the grievance.
  • The investigating agency will make a determination of Cause or No Cause.
  • The office will generally issue a "right to sue" letter to the individual who documented the grievance
  • A representative who gets a "right to sue" letter
  • Has 90 days from receipt of the letter in which to record a suit against the business
  • After 90 days, the employee loses the privilege to sue the employer for discrimination. 

Right to Time Off Work in Arizona 

Many employers offer their employees paid leave, vacation time, sick days, holidays, or paid time off (PTO) benefits. Neither Arizona nor federal law require employers to offer paid leave.

Employers might be required to offer unpaid leave for multiple reasons, such as military leave. The federal Uniformed Services Employment and Reemployment Rights Act (USERRA) and Arizona law both expect employers to allow employees time off from work for military duty.

Employees must be reinstated after their leave and may not be discriminated against upon return. The federal Family and Medical Leave Act (FMLA) requires businesses with no less than 50 workers to allows qualified employees to take 12 weeks of unpaid time off every year for medical leave and providing care to family members.

The worker has the right to be restored when leave is through. Arizona employers should likewise permit employees to take unpaid time off work for jury duty and should not expect them to utilize their paid leave benefits for this reason. Employees likewise may not lose their position or vacation time since they were called to jury duty.


Arizona employees are allowed time off, with pay, in order to cast their votes, unless the worker's workday starts no less than three hours after the surveys open or closes no less than three hours before the surveys close.

If you need assistance with Arizona Labor Laws, you can post your legal need on UpCounsel’s marketplace. UpCounsel receives merely the top 5 percent of attorneys to its site. Attorneys on UpCounsel come from law schools all over the nation.