The Arizona Labor Law Guide

As of January 1, 2026, Arizona's statewide minimum wage is $15.15 per hour for most employees. The state adjusts it annually based on the cost of living.

Local minimum wages

Where a local minimum wage is higher than the Arizona statewide rate, employers must pay the local rate.

• Flagstaff: $18.35 per hour (effective January 1, 2026)
• Tucson: $15.45 per hour (effective January 1, 2026)

Statewide rule

Arizona lets employers take a tip credit of up to $3.00 per hour toward the minimum wage. With the state minimum at $15.15 per hour as of January 1, 2026, that means a cash wage of at least $12.15 per hour ($15.15 minus $3.00).

The employee's cash wage plus tips still has to reach the full minimum wage. If tips do not cover the gap, the employer pays the shortfall.

Local tipped wage rules

Employers must follow local city ordinances where they are more protective than state law.

• Flagstaff: no tip credit permitted. Effective January 1, 2026, Flagstaff eliminated the tipped minimum wage, so employers must pay all employees the full local minimum of $18.35 per hour regardless of tips earned.
• Tucson: a $3.00 tip credit is allowed against the local minimum of $15.45 per hour, so the minimum cash wage for tipped employees in Tucson is $12.45 per hour.

Arizona has no separate state overtime requirement, so overtime for most employers is governed by the federal Fair Labor Standards Act (FLSA).

Under the FLSA, covered employers must pay non-exempt employees one and one-half (1.5) times their regular rate for every hour worked over 40 in a workweek.

Arizona law does not require private employers to provide meal periods or rest breaks, so the federal FLSA rules apply.

Under federal law, breaks are not required, but:

• Short rest breaks, typically 20 minutes or less, must be paid if provided.
• Bona fide meal periods, generally 30 minutes or more, do not have to be paid, as long as the employee is completely relieved of all duties and performs no work during the meal period.

Vacation leave

Arizona law does not require private employers to provide paid or unpaid vacation leave. When an employer offers it, the terms are generally set by the employer's written policy or employment agreement.

Paid sick leave

Arizona requires employers to provide paid sick time, with the annual cap based on employer size.

Employers with 15 or more employees:

• Accrual rate: 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: 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.

Arizona law generally requires unused accrued sick time to carry over to the following year, though employers may limit total usage in any given year to the caps above.

Holidays

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

Arizona regulates the employment of minors under 16 mainly by adopting and enforcing the federal FLSA. Where federal law is more restrictive than Arizona law, the stricter standard applies.

Hours 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 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 generally does not 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, 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 face additional Arizona-specific restrictions. Under Arizona law, they 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.