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creates an express or implied contract. While efforts are made to present only accurate and current
information, laws can and do change and interpretations vary among jurisdictions, so all information is
presented on an “as-is” basis. This site is for informational purposes only.
Meals and Break
Arizona does not have any laws requiring an employer to provide a meal period or breaks
to employees, thus the federal rule applies. The federal rule does not require an employer
to provide either a meal (lunch) period or breaks. However, if an employer chooses to do
so, breaks, usually of the type lasting less than 20 minutes, must be paid. Meal or lunch
periods (usually 30 minutes or more) do not need to be paid, so long as the employee is
free to do as they wish during the meal or lunch period. DOL: Breaks and Meal Periods.
Vacation
In Arizona, an employer is not required to provide its employees with vacation benefits,
either paid or unpaid. See the AZ Industrial Commission's pamphlet, “The State of
Arizona's Labor Law: Your Wages and Working.” If an employer chooses to provide such
provide vacation benefits, it must comply with the terms of its established policy or
employment contract. See A.R.S. § 23-350(5).
The Arizona Attorney General has recognized that employer’s may lawfully implement a
“use-it-or-lose-it” leave policy requiring employees to use vacation by a set date or lose it,
so long as employees have a reasonable opportunity to use the leave. AZ Atty. General Op.
I80-120.
An employer would also likely be free to implement a policy or enter into a contract that
caps the amount of vacation leave an employee can accumulate over time.
Neither Arizona’s Legislature nor its courts have given any significant guidance regarding
an employer’s ability to deny or restrict the payment of accrued vacation upon separation
from employment. They are silent regarding whether an employer may:
- establish a policy or enter into a contract where it refuses to pay accrued or earned
vacation upon separation from employment,
- refuse to pay an employee accrued vacation upon separation from employment
when the policy does not address whether accrued vacation will be paid upon
separation from employment,
- deny an employee payment of accrued or earned vacation leave upon separation
from employment if the employee fails to meet certain standards, such as failing to
give timely notice of resignation or being terminated for cause.
Sick Leave
Arizona law does not require employers to provide employees with sick leave benefits,
either paid or unpaid. See the AZ Industrial Commission's pamphlet, “The State of
Arizona’s Labor Law: Your Wages and Working" (not available online). If an employer
chooses to provide sick leave benefits, it must comply with the terms of its established
policy or employment contract. An employer in Arizona may be required to provide an
employee unpaid sick leave in accordance with the Family and Medical Leave Act or other
federal laws.
Severance
Arizona law does not require employers to provide employees with severance pay. See the
AZ Industrial Commission's pamphlet, “The State of Arizona’s Labor Law: Your Wages and
Working" (not available online). If an employer chooses to provide severance benefits, it
must comply with the terms of its established policy or employment contract.
Holidays
Arizona law does not require employers to provide employees with either paid or unpaid
holiday leave. In Arizona, an employer can require an employee to work holidays. An
employer does not have to pay an employee premium pay, such as 1 1/2 times the regular
rate, for working on holidays, unless such time worked qualifies the employee for overtime
under standard overtime laws. If an employer chooses to provide either paid or unpaid
holiday leave, it must comply with the terms of its established policy or employment
contract.
Minimum Wage
Arizona's current minimum wage is $7.35. AZ Industrial Commission FAQs. Some
exception may apply.
Arizona employers must also comply with federal minimum wage laws, which currently
sets the federal minimum wage at $7.25. See FLSA: Minimum Wage.
If an employer chooses to pay employees minimum wage, the employer must pay those
employees in accordance with the minimum wage law, either federal or state, that results
in the employees being paid the higher wage. Because Arizona's wage rate is the same
as the federal rate, an employer is compliance with both laws if it pays employee's a
minimum of $7.35.
Overtime
Arizona does not have laws governing the payment of overtime. Federal overtime laws
apply. See FLSA: Overtime for more information regarding overtime requirements.
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TOPICS COVERED (Scroll down for detailed information):
- Minimum Wage
- Overtime
- Meals and Breaks
- Vacation Leave
- Sick Leave
- Severance Pay
- Holiday Leave
- Jury Duty
Jury Duty
An employer is not required to pay an employee any wages for time spent complying with a
jury summons or serving on a jury.
An employer may not discharge or otherwise penalize an employee for complying with a
jury summons or serving on a jury.
An employer may not require an employee to use annual, vacation, or sick leave for time
spent responding to a jury summons or serving on a jury.
When an employee returns from jury service, he or she must be returned to their previous
position or to a higher position if the employee would have been entitled to the higher
position had they not served jury duty. An employee cannot lose seniority while serving as
a juror.
Arizona Stat. 21.236