Arizona Labor Laws set the baseline for wages, hours, leave, and workplace rights across the state. If you employ people in Arizona—or work here—this quick, plain-English guide highlights what changed for 2025 and what still matters day to day.
Minimum Wage (2025) and Local Rates
Arizona’s statewide minimum wage is $14.70/hour effective January 1, 2025. Tipped employees may be paid a lower cash wage if tip rules are met (see below).
Some cities have higher local minimum wages: Flagstaff is $17.90/hour (tipped: $15.90), and Tucson is $15.00/hour for work performed within city limits. Always follow the highest applicable rate based on where work is performed.
Tipped Employees
Arizona allows a tip credit up to $3.00/hour. Employers must prove that cash wage plus tips meets or exceeds the full minimum wage for each workweek. Keep accurate tip records and follow notice rules.
Paid Sick Leave (Earned Paid Sick Time)
Under the Fair Wages and Healthy Families Act, employees accrue 1 hour of paid sick time per 30 hours worked. Employers with 15+ employees must allow up to 40 hours/year of use; those with fewer than 15 employees must allow up to 24 hours/year. Employers may front-load time or allow carryover; a 90-day waiting period to use time is permitted for new hires. Qualified uses include the employee’s or a family member’s health needs, public health closures, and issues related to domestic violence, sexual violence, abuse, or stalking.
Overtime and Exemptions
Arizona follows the federal Fair Labor Standards Act (FLSA) for overtime (time-and-a-half after 40 hours in a workweek). The U.S. Department of Labor’s 2024 rule to raise the salary threshold for exempt “white-collar” employees was blocked by federal courts, so the prior $684/week (2019 rule) has generally remained operative pending litigation. Check counsel for updates.
Paydays, Final Pay, and Deductions
- Pay frequency: Employers must set at least two paydays each month, no more than 16 days apart (limited exceptions apply to employers headquartered out of state for certain roles).
- Final pay:
- If an employee is terminated, pay all wages due within seven working days or by the next regular payday, whichever comes first.
- If an employee quits, pay by the next regular payday.
- Deductions: Employers may not withhold or divert wages unless allowed by law, court order, or a signed employee authorization.
Meal and Rest Breaks
Arizona state law does not require employers to provide meal or rest breaks. If you do offer breaks, follow your written policy consistently and ensure any short rest periods are treated in accordance with federal law.
Youth Employment (Minors)
Arizona limits hours for workers under 16 and restricts hazardous occupations for minors:
- Under 16: limits on daily/weekly hours; school-day windows generally 6 a.m.–9:30 p.m., expanded when school isn’t in session.
- Occupational restrictions apply to under 16 and 16–17 for specific tasks (e.g., certain manufacturing, construction, elevated work).
Review the state’s youth employment pages and statutes before hiring minors.
Anti-Discrimination and Harassment
The Arizona Civil Rights Act prohibits employment discrimination based on race, color, national origin, sex, religion/creed, age (40+), disability, pregnancy, and retaliation. The Arizona Attorney General enforces these provisions. Employers should maintain clear anti-harassment policies, train staff, and promptly investigate complaints.
Right-to-Work and At-Will Employment
Arizona is a right-to-work state under Article 25 of the Arizona Constitution. Employees cannot be required to join or pay a union as a condition of employment. Arizona is also an at-will employment jurisdiction unless a contract states otherwise.
Mandatory E-Verify in Arizona
Under the Legal Arizona Workers Act, every Arizona employer must use E-Verify to confirm new hire work authorization and retain the verification record. Noncompliance can affect business licensing and eligibility for certain government contracts.
Time Off to Vote
If an employee lacks three consecutive non-working hours while polls are open, employers must provide paid time off to vote in primary and general elections. Employees should request this leave before Election Day; employers may set the time during the day.
Required Workplace Posters
Employers must display the current Minimum Wage poster and the Earned Paid Sick Time poster (plus any local notices) conspicuously at each worksite—or make them accessible electronically for remote staff. 2025 and 2026 posters are available from the Industrial Commission of Arizona.
Practical Compliance Tips for 2025
- Map your wage rates to job locations (state vs. Flagstaff vs. Tucson).
- Audit tip practices: confirm tip credit math and written notices.
- Refresh sick leave policies to match accrual, carryover, and protected uses.
- Re-check exempt classifications and salary levels in light of ongoing federal overtime litigation.
- Confirm E-Verify enrollment and retention of records.
- Update postings and handbook sections for 2025.
Bottom line:
Arizona Labor Laws in 2025 keep the statewide minimum at $14.70, preserve the $3 tip credit, require earned paid sick time, follow federal overtime rules (with court-blocked changes still in flux), and mandate E-Verify for all new hires—while Flagstaff and Tucson set higher local minimums. Keep policies current, document consistently, and follow the highest applicable standard to stay compliant with Arizona Labor Laws.
