In addition to federal laws, each state has regulations that employers must follow for payroll and employee benefits. In Arizona, there are some laws that business leaders and HR professionals should be aware of.
Wage payment requirements
The Arizona Labor Department enforces wage payment requirements throughout all of Arizona. The method of payment in Arizona must be through lawful U.S. currency such as cash, check, payroll card account, or direct deposit.
If employers use payroll card accounts to pay their employees, they must ensure that the employee can make at least one withdrawal or transfer per pay period without incurring any costs. Employers must also have each employee’s written authorization in order to pay wages through payroll card accounts.
Employees that are being paid through direct deposit or a payroll card must be provided with a statement that shows all their deductions.
In Arizona, most employees must be paid at least twice per month, on pre-established paydays and the paydays cannot be more than 16 days apart or five days after the end date of the pay period.
Arizona does not have separate overtime regulations, so employers must follow the federal requirements under the Fair Labor Standards Act (FLSA).
Here are some of the paid and unpaid leave laws in Arizona that apply to employers in addition to Federal requirements like FMLA and USERRA:
- Vacation time: Arizona does not currently have any state laws that require paid time off for employee vacations, but many employers choose to offer this benefit to employees.
- Earned paid sick time: For employers with 15 or more employees, employees are accruing a minimum of one hour of earned paid sick time for every 30 hours worked, with a maximum of 40 hours of earned paid sick time per year, unless the employer selects a higher limit. For employers with fewer than 15 employees, employees accruing a minimum of one hour of earned paid sick time for every 30 hours worked, with a maximum of 24 hours of earned paid sick time per year, unless the employer selects a higher limit. Learn more here: Arizona Earned Paid Sick Time
- Jury duty: Employers must provide their employees with unpaid leave to serve as jurors if it is asked of them.
- Voting leave: Employers must provide their employees with up to three hours of paid leave to vote in a primary or general election, unless they have at least three hours before or after work to do so.
When a notice period is given in Arizona, payout of unused vacation time is not required by law; however, many employers will still pay their employees for unused vacation days.
Employees who are terminated or discharged must receive all of their outstanding wages either within seven days or by the next regular payday, whichever is sooner.
If an employee quits or voluntarily resigns, they must be paid their outstanding wages on the next regular payday.
It is important for employers to understand the state laws in any state their employees work in.
If you have any questions regarding Arizona payroll and employee benefits, reach out to our HR experts at firstname.lastname@example.org.