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Capital City
Phoenix
Timezone
MST
(
UTC -7
)
Paid Leave
No legal requirement
Income Tax
2.5%
Employer Tax
14.3% - 30.23%
Capital City
Phoenix
Timezone
MST
(
UTC -7
)
Paid Leave
No legal requirement
Income Tax
2.5%
Employer Tax
14.3% - 30.23%
Arizona's job market, particularly in tech and finance, has been rapidly growing, with Phoenix ranked among the top U.S. cities for tech job growth.
Arizona's climate supports year-round outdoor activities, with popular options like hiking, golfing, and kayaking easily accessible around the Phoenix and Scottsdale areas.
Arizona’s cost of living is generally lower than in neighbouring states like California, making it attractive for companies and remote workers seeking affordability combined with a high quality of life.
Full-time employment is generally defined as working at least 30 to 40 hours per week. This is similar to the federal definition used under the Affordable Care Act, which considers 30 hours per week as full-time for certain benefit purposes.
There is no legal requirement for private sector employers to implement probationary periods for new employees. However, for certain public sector positions, probationary periods are mandated. For example, the Arizona Administrative Code specifies that law enforcement personnel must serve a 12-month initial probationary period.
On January 1st of every calendar year, the minimum wage in Arizona rises due to the increased cost of living. As of 2024, Arizona's minimum wage is $14.35 per hour. Arizona's Under 20 Minimum Wage (for employees under 20 years old) is $4.25 per hour for the first 90 days of employment. Arizona's minimum hourly wage for full-time students is $12.20, which is 85% of the regular minimum wage. In addition, the city of Flagstaff has a higher minimum wage than the state minimum, and it is $17.40 per hour. When it comes to the minimum wage for tipped employees in Flagstaff, it amounts to $15.90 per hour.
Arizona follows strict regulations prohibiting discrimination and wrongful employment termination on multiple grounds.
The Equal Employment Opportunity Commission prohibits discrimination based on:
Giving bonuses, merits, or deducting wages based on these criteria is also punishable by law.
Arizona law mandates that employers pay employees at least twice a month. This requirement ensures employees are paid no less frequently than semimonthly.
Employers and employees are both subject to state-specific and federal employment taxes.
GOOD TO KNOW: Arizona does not impose additional local income taxes or require additional contributions from employees for state disability insurance or other similar programs. Federal payroll tax contributions, including Social Security and Medicare, apply as they do across the United States.
The tax deadline for filing Arizona state income tax returns is typically April 15, aligning with the federal deadline, though extensions to October 15 are available if requested by the original deadline.
Arizona does not mandate that private employers provide pension or retirement plans to their employees.
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It is not mandated by federal law, and Arizona does not require employers to provide paid or unpaid vacation leave. Employers have the discretion to offer vacation leave and may set their own policies regarding accrual, usage, and payout upon termination.
Not mandated by law.
Maternity, paternity, and parental leave are not state-mandated in Arizona but are covered under the federal Family and Medical Leave Act (FMLA) for eligible employees. See more information about leave entitlements in the US in our federal guide.
Maternity, paternity, and parental leave are not state-mandated in Arizona but are covered under the federal Family and Medical Leave Act (FMLA) for eligible employees. See more information about leave entitlements in the US in our federal guide.
Paid sick leave is mandated. Employees accrue 1 hour of leave for every 30 hours worked, with annual caps depending on employer size. Sick leave can be used for personal or family illness, domestic violence, and public health emergencies.
Federal law applies.
Employers must allow time off for jury duty, though they are not required to pay for this leave. Employees cannot be penalised or terminated for serving on a jury and should notify employers upon receiving a summons.
Parental leave is not mandated by law. Eligible employees can take unpaid parental leave under FMLA for bonding with a new child by birth, adoption, or foster care. For more details on the exact entitlement check out our federal guide.
Not mandated by law, but is offered at employer discretion.
Arizona requires up to three hours of paid time off for voting if an employee’s schedule does not provide sufficient time while polls are open.
Employers must navigate both federal and state regulations to determine their obligations regarding employee benefits.
There is no federal or state law mandating that employers provide benefits to part-time employees.
There is no federal or Arizona state law that requires employers to offer 401(k) or other retirement plans to their employees.
In Arizona, private sector employment follows the "At-Will" employment doctrine. This means that an employee can be terminated, or can quit, at any time without cause or notice, unless the termination violates specific laws (e.g., discrimination, retaliation, or contract terms).
There is no legally mandated notice period for private sector employees in Arizona. Notice requirements may exist if specified in a company policy or an employment contract.
Severance is not mandated by State law.
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As of January 1, 2024, Arizona’s minimum wage rates are:
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