Arizona Labor Law Guide 2026: Wages, Overtime, Breaks, and Leave

Arizona's employment rules are a mix of voter-passed mandates and a light statutory touch elsewhere. The Fair Wages and Healthy Families Act (Proposition 206, 2016) gave the state an indexed minimum wage and earned paid sick time for every employee, while overtime, breaks, and leave beyond sick time follow federal law. The Industrial Commission of Arizona (ICA) Labor Department enforces the wage, sick time, wage payment, and youth employment laws.

Minimum Wage in Arizona

Arizona's minimum wage is $15.15 per hour in 2026, adjusted every January 1 by the CPI under Proposition 206. Tipped employees may be paid up to $3.00 less, or $12.15, if tips make up the difference. The law covers full-time, part-time, and temporary employees regardless of age, with no training wage, and the only exclusions are state and federal government employees and small family businesses. Flagstaff and Tucson set their own higher rates.

For the local rate table, the indexing mechanism, and the 2027 adjustment, see the Arizona minimum wage guide.

Overtime Rules

Arizona has no state overtime statute, so the federal FLSA governs: non-exempt employees earn 1.5 times their regular rate for hours over 40 in a workweek. There is no daily overtime and no weekend or holiday premium. Employers may use compressed schedules such as four 10-hour days without paying daily overtime, as long as the weekly total stays at 40. The exempt salary floor is the federal $684 per week.

Worked example at the minimum wage: an employee paid $15.15 works 45 hours. Regular pay is 40 hours at $15.15 ($606.00) plus 5 hours at $22.73 ($113.63), for $719.63 gross. The overtime calculator handles other rates, and our overtime pay laws in the US guide compares states with daily rules.

Meal and Rest Breaks

Arizona does not require meal or rest breaks for employees of any age, so the federal rules apply: breaks of 5 to 20 minutes are paid time, and a bona fide meal period of 30 minutes or more can be unpaid if the employee is completely relieved of duty. Employers that promise breaks in a handbook or contract must provide them.

Break type	Requirement	Applies to
Meal period	Not required by state law; unpaid only if duty-free	All employees, including minors
Rest break	Not required; breaks under 20 minutes are paid if given	All employees
Lactation	Reasonable break time and a private space under federal law	All employers

Because there is no state rule, a written break policy is the main protection against disputes about unpaid time. The break time calculator suggests a schedule for any shift length, and our rest and meal break laws by state guide lists the states that do mandate breaks.

Paid Sick Leave and Other Leave

Earned paid sick time under A.R.S. 23-372 applies to every private employer. Employees accrue "a minimum of one hour of earned paid sick time for every 30 hours worked." Employers with 15 or more employees may cap accrual and use at 40 hours a year; employers with fewer than 15 employees may cap at 24 hours. Accrual begins on the first day of employment, and employers may require a 90-day wait before new hires use the time. Unused time carries over, or the employer may pay it out at year end and front-load the next year's amount. Leave covers the employee's or a family member's illness, preventive care, domestic violence matters, and public health closures, and employees who leave and are rehired within 9 months get their balance back.

Leave type	Arizona rule
Earned paid sick time	1 hour per 30 hours worked at every employer; 40-hour cap (15 or more employees) or 24-hour cap (fewer than 15)
Federal FMLA	12 weeks unpaid at employers with 50 or more employees; Arizona has no state paid family leave program
Jury duty	Employers may not fire or penalize an employee for jury service and may not require use of sick or vacation leave; unpaid
Voting	Up to 3 hours of paid leave when the employee has fewer than 3 consecutive non-work hours while polls are open
Military	Federal USERRA plus state protections for National Guard members
Crime victims	Leave to attend proceedings, unpaid, at employers with 50 or more employees

See paid sick leave laws in the US for how Arizona's caps compare and jury duty laws in the US for court leave.

PTO Payout and Final Paychecks

Under A.R.S. 23-353, an employee who is discharged must be paid all wages due within 7 working days or by the end of the next regular pay period, whichever is sooner. An employee who quits must be paid by the next regular payday, and may request payment by mail. Employers that withhold wages without a good-faith dispute face treble damages under A.R.S. 23-355.

Payout of unused vacation or PTO follows the employer's written policy; Arizona does not require it by statute, and the sick time law expressly allows employers to decline payout of unused sick time. Our PTO payout laws by state guide covers every state.

Pay frequency: employers must designate two or more paydays a month, not more than 16 days apart, and pay within 5 days after the end of the pay period (10 days for out-of-state payroll). Deductions beyond taxes and benefits require the employee's written authorization or a court order.

Exempt vs Non-Exempt Employees

Arizona applies the federal duties tests and the federal $684 per week salary floor, with no state threshold. The state minimum wage law is broader than the FLSA in coverage, so an employee exempt from the federal minimum wage may still be owed the Arizona rate. Exempt employees also accrue earned paid sick time; the law assumes 40 hours a week for accrual unless their normal schedule is shorter. Our exempt vs non-exempt employees guide and the FLSA exemption flowchart walk through the tests.

Child Labor Rules

Arizona does not issue work permits, but the Youth Employment Laws in A.R.S. 23-230 and following set hour limits for workers under 16 and prohibit hazardous occupations for all minors, as summarized on the ICA's hours restrictions page.

Age group	School week	Non-school week	Hours of day
Under 16	3 hours on a school day, 8 hours on a non-school day, 18 hours a week	8 hours a day, 40 hours a week	Not between 9:30 PM and 6 AM before a school day; not between 11 PM and 6 AM otherwise
16 and 17	No state hour limits	No state hour limits	No state restriction; federal hazardous-occupation rules apply

Federal rules also bar 14 and 15 year olds from working before 7 AM or after 7 PM (9 PM in summer) at FLSA-covered employers. See child labor laws in the US.

Other Arizona Employment Rules

• E-Verify. The Legal Arizona Workers Act requires every employer to use E-Verify for new hires.
• Medical marijuana. Employers may not discriminate against registered medical marijuana cardholders for a positive test unless the employee used or was impaired at work, subject to safety-sensitive exceptions.
• Drug testing. Employers that adopt a written policy meeting A.R.S. 23-493 requirements gain protection from claims arising from testing.
• Retaliation. The Fair Wages and Healthy Families Act presumes retaliation if adverse action follows within 90 days of an employee asserting sick time or wage rights.
• Local sick leave. Flagstaff and Tucson follow the state sick time law but set higher minimum wages; Tucson's ordinance also has its own enforcement provisions.
• Non-competes. Enforceable if reasonable in scope and duration; no wage threshold.

Hiring, Termination, and Record-Keeping

Arizona is an at-will state with exceptions for discrimination, retaliation, and public policy, and the Employment Protection Act limits wrongful termination claims to those grounded in statute or public policy. The Arizona Civil Rights Act covers employers with 15 or more employees (1 or more for sexual harassment claims), and the Civil Rights Division of the Attorney General's office enforces it.

Employers must keep records of hours worked, wages, and earned paid sick time accrued and used for 4 years under A.R.S. 23-364, must show sick time balances on each pay statement or in a separate notice, and must post the ICA minimum wage and earned paid sick time notices with the federal posters. Accrual at 1 hour per 30 depends on hours-worked records; a time card calculator and a written timekeeping policy keep accrual and overtime auditable.

Frequently Asked Questions

Is Arizona an at-will state? Yes, with exceptions for discrimination, retaliation, and public policy under the Employment Protection Act.

Does Arizona require lunch breaks? No. Arizona has no meal or rest break law for adults or minors, so federal rules govern.

When is overtime paid in Arizona? After 40 hours in a workweek at 1.5 times the regular rate, under the federal FLSA.

When is the final paycheck due in Arizona? Within 7 working days or by the end of the next regular pay period, whichever is sooner, for a discharge; by the next regular payday when an employee quits.

Does Arizona have paid sick leave? Yes. Every employer must provide earned paid sick time at 1 hour per 30 hours worked, capped at 40 hours a year for employers with 15 or more employees and 24 hours for smaller employers.

How many hours can a minor work in Arizona? Workers under 16 are limited to 3 hours on a school day, 8 on a non-school day, and 18 in a school week, or 40 a week when school is out. Arizona sets no hour limits for 16 and 17 year olds.

Does Arizona require work permits for minors? No. Arizona does not issue work permits or employment certificates.

Does Arizona pay out unused PTO? Only if the employer's written policy provides for it; unused sick time does not have to be paid out.

Sources

• A.R.S. 23-372: Accrual of earned paid sick time
• A.R.S. 23-373: Use of earned paid sick time
• Industrial Commission of Arizona: Youth employment hours restrictions
• Industrial Commission of Arizona: Earned paid sick time
• US Department of Labor: State minimum wage laws