Arizona HR laws for employers (2026)
The Arizona rules employers ask about most: minimum wage, overtime, final pay, unused vacation, paid sick leave and breaks.
Arizona employment law at a glance
| Minimum wage | $15.15 per hour Verify |
|---|---|
| Tipped cash wage | $12.15 per hour |
| Overtime | No daily overtime; follows the federal rule of 1.5x pay after 40 hours in a week. |
| Final pay when fired | Within 7 working days or the end of the next regular pay period, whichever is sooner. |
| Final pay when an employee quits | By the regular payday for the pay period in which the resignation occurred (mailed if the employee asks). |
| Unused vacation / PTO at separation | No state law requires payout of unused vacation; it generally depends on the employer's policy or contract. Verify |
| Paid sick leave | Yes: 1 hour per 30 hours worked; annual cap of 24 hours (fewer than 15 employees) or 40 hours (15 or more), unless the employer sets a higher limit. |
| Meal breaks | No state requirement for adult employees. |
| Rest breaks | No state requirement. |
Minimum wage note: Up from $14.70 in 2025; adjusted each January 1 for inflation. News reports put the 2027 rate at $15.65 (confirm with the Industrial Commission of Arizona). Flagstaff ($18.35) and Tucson ($15.45) have higher local rates.
Verify means we could not confirm that item from an official Arizona or US Department of Labor source, so check it with the state before relying on it.
Other Arizona rules to know
- Minimum wage and earned paid sick time come from the voter-approved Fair Wages and Healthy Families Act (Prop 206), enforced by the Industrial Commission of Arizona.
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Frequently asked questions
What is the minimum wage in Arizona in 2026?
$15.15 per hour, effective January 1, 2026. Up from $14.70 in 2025; adjusted each January 1 for inflation. News reports put the 2027 rate at $15.65 (confirm with the Industrial Commission of Arizona). Flagstaff ($18.35) and Tucson ($15.45) have higher local rates.
When is a final paycheck due in Arizona?
If the employer ends employment: Within 7 working days or the end of the next regular pay period, whichever is sooner. If the employee quits: By the regular payday for the pay period in which the resignation occurred (mailed if the employee asks).
Does Arizona require paying out unused vacation?
No state law requires payout of unused vacation; it generally depends on the employer's policy or contract.
Is paid sick leave required in Arizona?
Yes: 1 hour per 30 hours worked; annual cap of 24 hours (fewer than 15 employees) or 40 hours (15 or more), unless the employer sets a higher limit.
Sources
- Arizona Revised Statutes 23-363 (minimum wage, tip credit)
- Arizona Revised Statutes 23-372 (earned paid sick time)
- Arizona Revised Statutes 23-353 (final pay)
- US DOL - State Minimum Wage Laws
- US DOL - Minimum Wages for Tipped Employees
- US DOL - Meal and Rest Period tables
- NFIB - New year brings increases to Arizona's minimum wage (secondary)
HR laws in other states
This page is general information for employers, not legal advice. Employment laws change and can vary by city and county. Confirm details with the state labor department or an employment attorney. Read our disclaimer.