Arizona Employment Law — full calculator

Frequently Asked Questions

• When must an Arizona employer issue a final paycheck after termination?

  Under A.R.S. § 23-353 (as of 2026), discharged employees must receive their final paycheck within 7 working days or by the next regular payday — whichever date is sooner. Employees who resign must be paid by the next regular payday. Violating this deadline is a criminal petty offense in Arizona.

• Does Arizona have mandatory paid sick leave?

  Yes. Arizona's Fair Wages and Healthy Families Act (A.R.S. § 23-372) requires all employers to provide paid sick leave. Employees accrue 1 hour for every 30 hours worked. Employers with 15 or more employees must allow up to 40 hours per year; employers with fewer than 15 employees must allow up to 24 hours per year. There is no equivalent federal mandate.

• What is Arizona's minimum wage in 2026?

  Arizona's minimum wage is $15.15 per hour effective January 1, 2026 — a $0.45 increase over the 2025 rate of $14.70/hr. The rate is indexed annually to CPI by the Arizona Industrial Commission (AZICA). Tipped employees may be paid a direct wage of $12.15/hr if tips bring total pay to at least $15.15/hr.

• Are non-compete agreements enforceable in Arizona?

  It depends on the worker's industry. Under A.R.S. § 23-494, broadcast employees (TV stations, TV networks, radio stations, radio networks) cannot be required to sign non-compete clauses — any such clause is unenforceable by law. For all other employees, Arizona applies a common-law reasonableness standard: the agreement must be necessary to protect a legitimate business interest, and must not be unreasonable in scope, duration, or geography.

• Does Arizona law require daily overtime pay like California?

  No. Arizona follows the federal FLSA standard for overtime: employees are entitled to 1.5× their regular rate for hours worked over 40 in a workweek. Arizona has no daily overtime threshold. A.R.S. § 23-391 defers to federal law for overtime requirements.

• Does Arizona require meal or rest breaks for adult employees?

  Arizona does not have a confirmed state statute mandating meal or rest breaks for adult employees. The FLSA is silent on break requirements for adults, and Arizona has not enacted a separate break law for the general workforce. This distinguishes Arizona from states like California that have strict break mandates.

• What penalties apply if an Arizona employer withholds the final paycheck?

  Failure to pay wages on the deadline under A.R.S. § 23-353 is a criminal petty offense. Employees may also file a civil wage claim with the Arizona Industrial Commission (AZICA) to recover all outstanding wages. Under A.R.S. § 23-355, courts may award treble (triple) damages plus attorneys' fees for willful non-payment.

• Can Arizona sick leave hours carry over to the next year?

  Yes. Under A.R.S. § 23-372, unused sick leave hours carry over to the following year up to the annual cap (40 hours for 15+ employee employers; 24 hours for smaller employers). Alternatively, employers may pay out unused hours at year-end and provide a fresh accrual amount at the start of the new year that is immediately available.

• Is Arizona's minimum wage above the federal minimum?

  Yes — significantly. Arizona's 2026 minimum wage is $15.15/hr, more than double the federal minimum of $7.25/hr (unchanged since 2009 under 29 U.S.C. § 206). The higher state rate governs all Arizona employees. The state rate is adjusted annually via CPI indexing under Proposition 206.

• Where can I file a wage claim in Arizona?

  File with the Arizona Industrial Commission (AZICA) at azica.gov. AZICA's Labor Department handles unpaid wage claims, minimum wage violations, and final paycheck disputes at no cost to the employee. You may also bring a private civil lawsuit under A.R.S. § 23-355 with potential for treble damages and attorneys' fees.