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Arizona Labor Laws 2025

Arizona has comprehensive labor protections including a minimum wage above federal levels with no tip credit, mandatory earned paid sick time, and annual inflation adjustments. Flagstaff has an even higher local minimum wage.

Important: Arizona does not allow tip credits. All employees, including tipped workers, must receive the full minimum wage before tips. Flagstaff has a higher minimum wage of $17.40/hour.

Minimum Wage

Arizona has a state minimum wage that exceeds federal law and adjusts annually for inflation.

Key Requirements

  • State minimum wage: $14.70 per hour (as of January 1, 2025)
  • No tip credit allowed - tipped employees must receive full minimum wage before tips
  • Annual adjustments based on Consumer Price Index
  • Flagstaff has a higher local minimum wage: $17.40 per hour
  • Applies to all employers regardless of size

Additional Resources

Overtime

Arizona follows federal overtime requirements under the FLSA with no additional state requirements.

Key Requirements

  • Overtime pay: 1.5x regular rate for hours worked over 40 in a workweek
  • No daily overtime requirement (calculated weekly)
  • Standard FLSA exemptions apply (executive, administrative, professional)
  • No state-specific overtime provisions
  • Workweek is seven consecutive 24-hour periods

Additional Resources

Earned Paid Sick Time

Arizona requires all employers to provide earned paid sick time to employees.

Key Requirements

  • Accrual: 1 hour of paid sick time for every 30 hours worked
  • Employers with 15+ employees: Minimum 40 hours per year
  • Employers with fewer than 15 employees: Minimum 24 hours per year
  • Can be used for employee or family member illness, preventive care, or certain public health emergencies
  • Unused sick time carries over to the next year (up to annual cap)

Additional Resources

Meal and Rest Breaks

Arizona does not require employers to provide meal or rest breaks for employees.

Key Requirements

  • No state law requiring meal breaks for adult employees
  • No state law requiring rest breaks for adult employees
  • If breaks are voluntarily provided, federal rules apply
  • Short breaks (5-20 minutes) must be paid if provided
  • Meal periods (30+ minutes) may be unpaid if employee is completely relieved of duties
  • Nursing mothers have right to express milk (federal requirement)

Additional Resources

Payment of Wages

Arizona has specific requirements for wage payment frequency and timing.

Key Requirements

  • Employees must be paid at least semi-monthly (twice per month)
  • Payday must be no more than 16 days apart
  • Final wages: Must be paid by the next regular payday or within 7 days, whichever is sooner
  • If employee quits without 48 hours notice: payment due within 7 days or next payday, whichever is sooner
  • Direct deposit allowed with employee written authorization

Additional Resources

Child Labor

Arizona has restrictions on youth employment, particularly during school hours.

Key Requirements

  • Minors under 16: Generally prohibited from working during school hours
  • Ages 14-15: Limited to 3 hours per school day, 18 hours per week during school
  • Ages 14-15: 8 hours per day, 40 hours per week when school not in session
  • Ages 16-17: No hour restrictions, but hazardous occupation restrictions apply
  • Special permits required for some types of employment

Additional Resources

Earned Paid Sick Time Details

Arizona's Fair Wages and Healthy Families Act mandates paid sick time for all employees:

Larger Employers (15+)

Must provide at least 40 hours of paid sick time per year

Accrues at 1 hour per 30 hours worked

Smaller Employers (1-14)

Must provide at least 24 hours of paid sick time per year

Accrues at 1 hour per 30 hours worked

Permitted Uses

  • Employee's own mental or physical illness, injury, or health condition
  • Preventive medical care for employee
  • Care of a family member's illness or medical appointment
  • Public health emergency closure or quarantine
  • Domestic violence, sexual violence, abuse, or stalking situations

Flagstaff's Higher Minimum Wage

The City of Flagstaff has its own minimum wage ordinance that exceeds the state minimum:

  • Flagstaff minimum wage: $17.40 per hour (2025)
  • Applies to all employees working within Flagstaff city limits
  • Adjusted annually based on Consumer Price Index

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