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Arizona Employment Law Compliance Guide for Small Businesses
Medium Complexity
Arizona's Fair Wages and Healthy Families Act requires employers to provide paid sick time. Employees accrue 1 hour of paid sick time for every 30 hours worked. Employers with 15+ employees must allow up to 40 hours of accrual per year.
Key Numbers
TIPPED WAGE
$11.70 (tip credit allowed)
Compliance Requirements
✓No Pay Transparency Law
Arizona does not currently require salary ranges in job postings. Federal contractors may still have obligations.
⚠Paid Leave Mandatory
Employers must provide paid sick leave (and potentially paid family/medical leave). You must track accrual, provide notice, and display updated workplace posters.
★Tip Credit: $11.70 (tip credit allowed)
Employers may pay tipped employees a reduced cash wage if tips bring total compensation to at least the minimum wage.
Federal Thresholds That Apply in Arizona
These federal requirements apply to all Arizona employers based on headcount:
1+ employees: FLSA (wage and hour), IRCA (I-9 verification), EPPA (polygraph), USERRA (military leave)
15+ employees: Title VII (discrimination), ADA (disability), GINA (genetic information), Pregnant Workers Fairness Act
20+ employees: ADEA (age discrimination), COBRA (health continuation)
50+ employees: FMLA (12 weeks unpaid leave), ACA (affordable health coverage or $2,880/employee penalty), EEO-1 reporting
100+ employees: WARN Act (60-day notice for mass layoffs)
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This guide is for informational purposes only and does not constitute legal advice. Employment laws change frequently. Consult a licensed attorney for advice specific to your business. Last updated March 2026.