The Arizona Labor Law Guide

Minimum wage is the lowest hourly pay rate that employers are legally obligated to pay employees. The federal minimum wage is a wage baseline, but different states, cities, and regions can adopt their own rates. 

Arizona Minimum Wage

Statewide Minimum Wage: As of January 1, 2026, Arizona’s statewide minimum wage is $15.15 per hour for most employees. The state minimum wage is adjusted annually based on the cost of living.

Local Minimum Wages (Higher Than State Rate): Employers must pay the applicable local minimum wage if it is higher than the Arizona statewide minimum wage.

• Flagstaff: $18.35 per hour (effective January 1, 2026)

• Tucson:$15.45 per hour (effective January 1, 2026)

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Statewide Rule: Arizona allows employers to take a tip credit of up to $3.00 per hour toward the minimum wage obligation. As of January 1, 2026, the state minimum wage is $15.15 per hour.

Therefore, employers must pay tipped employees a cash wage of at least $12.15 per hour ($15.15 minus $3.00), provided that the employee’s direct cash wage plus tips equals at least the full minimum wage. If the tips do not make up the difference, the employer must pay the shortfall.

Local Tipped Wage Rules: Employers must comply with local city ordinances if they are more protective than state law.

• Flagstaff: No Tip Credit Permitted. Effective January 1, 2026, Flagstaff has eliminated the tipped minimum wage. Employers must pay all employees the full local minimum wage of $18.35 per hour, regardless of tips earned.
  

• Tucson: $3.00 Tip Credit Permitted. Tucson allows a $3.00 tip credit against its local minimum wage of $15.45 per hour. Therefore, the minimum cash wage for tipped employees in Tucson is $12.45 per hour.

Arizona does not establish a separate state overtime requirement. As a result, overtime obligations for most employers in Arizona are governed by the federal Fair Labor Standards Act (FLSA).

Under the FLSA, covered employers must pay non-exempt employees overtime compensation at a rate of one and one-half (1.5) times the employee’s regular rate of pay for all hours worked over 40 in a workweek.

Arizona law does not require private employers to provide meal periods or rest breaks. As a result, the federal Fair Labor Standards Act (FLSA) rules apply.

Under federal law, employers are not required to provide meal or rest breaks. However:

• Short rest breaks, typically 20 minutes or less, must be paid if provided.
  

• Bona fide meal periods, generally 30 minutes or more, do not need to be paid, provided the employee is completely relieved of all duties and performs no work during the meal period.

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Vacation leave

Arizona law does not require private employers to provide paid or unpaid vacation leave. If an employer chooses to offer vacation leave, the terms are generally governed by the employer’s written policy or employment agreement.

Paid sick leave

Arizona requires employers to provide paid sick time based on employer size.

Employers with 15 or more employees

• Accrual rate: Employees accrue 1 hour of paid sick time for every 30 hours worked.

• Annual accrual cap: Up to 40 hours per year, unless the employer allows a higher limit.

Employers with fewer than 15 employees

• Accrual rate: Employees accrue 1 hour of paid sick time for every 30 hours worked.

• Annual accrual cap: Up to 24 hours per year, unless the employer allows a higher limit.

Note: Arizona law generally requires the carryover of unused accrued sick time to the following year, though employers may limit the total "usage" in any given year to the caps listed above.

Holidays

Arizona law does not require private employers to provide paid or unpaid holiday leave.

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Arizona regulates the employment of minors under age 16 primarily by adopting and enforcing the federal Fair Labor Standards Act (FLSA). Where federal law is more restrictive than Arizona law, the stricter standard applies.

Hours of work restrictions when school is in session

Minors under 16 years of age may not:

• Work more than 3 hours on a school day

• Work more than 8 hours on a non-school day

• Work more than 18 hours in a school week

When school is not in session (or when the minor is not enrolled in school)

Minors under 16 years of age may not:

• Work more than 8 hours per day

• Work more than 40 hours per week

Time-of-day restrictions (federal rule that applies statewide)

Employers covered by the FLSA must comply with federal time-of-day limits. Under federal law, minors under 16 may work only:

• Between 7:00 a.m. and 7:00 p.m., and

• Until 9:00 p.m. from June 1 through Labor Day

Arizona-specific rules

Arizona law does not generally permit broader working hours for minors under 16 beyond federal limits. Federal time-of-day restrictions apply to most employment.

Arizona provides limited exceptions for certain types of work, such as door-to-door sales or delivery, as described below. Federal law controls where it is more restrictive.

Door-to-door sales or delivery work

Minors under 16 engaged in door-to-door sales or delivery work are subject to additional Arizona-specific restrictions. Under Arizona law, such minors may not work:

• Between 7:00 p.m. and 9:30 p.m. on nights preceding a school day

• Between 7:00 p.m. and 11:00 p.m. on nights not preceding a school day

Employers must still comply with federal FLSA time-of-day limits where applicable.

Newspaper delivery exception

Certain hour restrictions do not apply to minors delivering newspapers directly to consumers. Other child labor requirements, including hazardous-work prohibitions, may still apply depending on the circumstances.

Hiring

The Arizona Civil Rights Act (ACRA) prohibits employment discrimination, harassment, and retaliation.

Protected characteristics

Under the ACRA, employers may not discriminate based on:

• Race

• Color

• Religion

• Sex (including pregnancy, childbirth, and related medical conditions)

• Age (40 and over)

• Disability

• National origin

• Genetic test results

Covered employers

The ACRA generally applies to employers with 15 or more employees. However, for sexual harassment claims and retaliation related to sexual harassment, the law applies to employers with one or more employees.

Harassment and retaliation

Arizona law prohibits workplace harassment, including sexual harassment, and prohibits employers from retaliating against employees who oppose discrimination or participate in investigations or proceedings under the ACRA.

Termination of employment

Arizona is generally an at-will employment state. Employers may terminate employment for any reason or no reason, provided the termination does not violate applicable law, including Arizona’s anti-discrimination and anti-retaliation statutes or other statutory protections.