Arizona Employment Laws

Arizona, like other states, follows the Fair Labor Standards Act (FLSA). This federal law sets the federal minimum wage, basic overtime pay requirements, and other rules. Arizona labor laws can go beyond these federal guidelines, as long as they do not go below them.

Arizona state law sets wage rates and other employment laws for Arizona residents. The Industrial Commission of Arizona manages workers’ compensation insurance, labor law, and workplace safety for the state of Arizona.

Overview of Arizona Employment Law

Employment laws cover everything from the length of the work week to the legal age of minor employees. Some worker protections in Arizona include:

Wages, Overtime, and Sick Leave

The Arizona minimum wage is currently $15.15 per hour, almost twice the federal minimum wage. Tipped employees must receive at least $12.15, unless their tips do not equal the minimum. If not, their employers must make up the difference. Payday must fall at least twice per month.

Arizona has mandatory sick time accrual (ARS § 23-372). Eligible workers must receive at least one hour of sick leave for every 30 hours worked, up to 24 hours for small employers and 40 hours for large employers. Arizona follows the federal Family and Medical Leave Act (FMLA), which gives eligible workers up to 12 weeks of unpaid protected leave to care for themselves or a sick family member.

Labor Rights

Arizona is a right-to-work state, meaning that employers may not require union membership or union participation as a condition of employment. Employers also cannot prevent workers from organizing a union. Any protections or benefits obtained by a union contract or collective bargaining agreement must apply equally to union and non-union members.

Arizona requires all employers to carry workers’ compensation insurance. The Industrial Commission of Arizona (ICA) monitors employers for coverage. Failure to maintain coverage is a felony in the state. The only workers not covered by workers’ compensation are independent contractors and domestic servants.

Under both federal and Arizona law, children under 14 years of age cannot work full-time in any commercial job when school is in session. During school breaks and vacation time, minors may work full-time in certain occupations, but those under 18 are limited in the nature of the employment.

Independent Contractors

Employment laws in general do not apply to independent contractors. By definition, an independent contractor negotiates their own hours, pay, and working conditions with the employer. If there is a dispute, it is a breach of contract and a matter for civil courts, not the ICA.

Issues may arise when an employer misclassifies an employee as an “independent contractor” when they are actually an employee. This may occur when an employer classifies workers as contractors for tax exemptions or to avoid paying insurance premiums.