Arizona Sick Leave Law (Arizona Paid Sick Leave): What Employers Need to Know
If you’re looking for the current Arizona sick leave law, the key takeaway is this: most Arizona employers must provide paid sick time under the Arizona Fair Wages and Healthy Families Act (passed via Proposition 206 and codified at A.R.S. § 23-371 through § 23-381). This guide explains accrual rates, caps, carryover rules, allowed uses, required notice/recordkeeping, and practical steps to update your Arizona sick leave policy—including answers to common questions like “does sick time roll over in Arizona?” and “do employers have to pay out sick time in Arizona?”
For broader HR compliance context, see SwiftSDS’s Employment legislation list covering major federal and state requirements.
Overview of Arizona Paid Sick Leave Requirements
Arizona’s law requires employers to provide earned paid sick time to eligible employees. Employers may comply by:
- Accruing paid sick time based on hours worked, or
- Frontloading a set amount each year (while meeting minimums and other rules).
The Industrial Commission of Arizona (Labor Department) enforces the Act’s earned paid sick time provisions.
If you manage multi-state teams, it can help to compare how requirements differ across jurisdictions (for example, california employment laws and anti discrimination laws in california often interact with leave administration and policies).
Who Is Covered and Who Must Comply?
Covered employers
In general, most private employers in Arizona must comply, including small businesses. The amount of required paid sick time depends on employer size.
Covered employees
Most employees are covered, including part-time and temporary employees, subject to the law’s definitions and exemptions. If you use staffing or seasonal labor, confirm whether the worker is treated as an employee for paid sick time purposes and align your onboarding materials accordingly.
Accrual Rate, Annual Caps, and Frontloading
Accrual rate (the statewide baseline)
Under the Act, employees accrue paid sick time at 1 hour for every 30 hours worked.
Annual usage caps (based on employer size)
Arizona sets different minimum annual amounts depending on employer size:
- Employers with 15 or more employees: employees may use up to 40 hours of paid sick time per year.
- Employers with fewer than 15 employees: employees may use up to 24 hours of paid sick time per year.
These figures are frequently what HR teams mean when they search “Arizona paid sick leave,” “Arizona paid sick time,” “Arizona paid sick days,” or “AZ sick pay laws.”
Frontloading option
Instead of tracking accrual each pay period, employers may frontload the full annual amount at the beginning of the year (or upon eligibility), as long as the employee receives at least the minimum required amount.
Actionable tip: If you frontload, confirm your payroll system clearly labels the bank as “earned paid sick time” (or equivalent) and your policy explains eligibility timing, permitted uses, and any carryover approach.
Permitted Uses Under the Arizona Sick Day Law
Arizona’s earned paid sick time can be used for the employee’s own needs and certain family-related purposes. Common covered uses include:
- The employee’s mental or physical illness, injury, or health condition
- Medical diagnosis, care, or treatment, or preventive care
- Care for a family member with an illness, injury, or health condition, including diagnosis/treatment/preventive care
- Absences related to domestic violence, sexual violence, abuse, or stalking (including medical attention, victim services, relocation, or legal services)
Actionable tip: Train supervisors not to apply attendance points in a way that penalizes protected paid sick time use. Retaliation and interference are core enforcement areas under the Act.
Notice, Documentation, and Anti-Retaliation Rules
Employee notice
Employees should provide notice of foreseeable leave when practical, but the law also protects unplanned absences. Your policy should state how employees should notify the company (call-in line, scheduling app, manager text protocol, etc.) without making the process overly burdensome.
Documentation
For consecutive absences, employers may request reasonable documentation, but policy language should be carefully drafted to avoid deterring legitimate use.
Anti-retaliation
The Act prohibits employers from retaliating against employees for requesting or using earned paid sick time.
Does Sick Time Roll Over in Arizona?
Yes—unused earned paid sick time generally must carry over to the next year. However, even with carryover, employers may still enforce the annual usage caps (24 or 40 hours, depending on size).
Actionable tip: If you frontload and pay the full annual requirement at the start of the year, some employers choose an approach that avoids complex carryover accounting—just ensure your method still satisfies Arizona’s minimum requirements and your written policy matches your payroll practice.
Do Employers Have to Pay Out Sick Time in Arizona?
In most cases, no. Under Arizona law, employers are generally not required to pay out unused earned paid sick time at separation.
However, if your company’s written policy or a collective bargaining agreement promises payout, that commitment may become enforceable as a matter of contract or wage policy. Also consider what happens upon rehire and whether you restore previously accrued balances per your policy and applicable rules.
Actionable tip: State clearly in your handbook whether unused sick time is paid out at termination (most employers say “no”), and ensure your final pay procedures align with that language.
Posting, Notices, and Recordkeeping (What HR Should Implement)
Arizona requires employers to provide employees with information about earned paid sick time and maintain records.
Recordkeeping
Employers should retain records showing:
- Hours worked (for non-exempt employees and others as tracked)
- Earned paid sick time accrued and used
- Pay rates and sick time payments
Pay statement / balance notice
Arizona also requires that employees receive information about available earned paid sick time (often satisfied via pay stubs or an online payroll portal balance display).
Labor law posters (don’t forget federal postings)
Even though the paid sick time law is state-based, most Arizona employers also need to keep federal wage-and-hour postings up to date. Include the current FLSA poster in your compliance set, such as Employee Rights Under the Fair Labor Standards Act (and the Spanish version Derechos de los Trabajadores Bajo la Ley de Normas Justas de Trabajo (FLSA), if applicable to your workforce).
If you have remote employees or multiple locations, SwiftSDS’s overview of electronic posters can help you evaluate digital distribution methods where permitted.
Building a Compliant Arizona Sick Leave Policy (Practical Checklist)
To align your Arizona sick leave policy with the Act, consider this minimum checklist:
- Define eligibility (who accrues, when accrual starts, and how it’s tracked).
- Choose accrual vs. frontload, and document the method.
- State the annual usage cap (24 or 40 hours based on employer size).
- Explain carryover rules and how the company handles year-end balances.
- List permitted uses (self, family, DV-related).
- Provide a clear notice/request procedure that works for your operation.
- Address documentation standards (if you require it for consecutive days).
- Add a strong non-retaliation statement and supervisor guidance.
- Ensure payroll can show available balance on pay statements or through an accessible system.
- Confirm your posting set includes key federal notices (see above) plus any Arizona-specific postings your business is subject to.
For employers expanding beyond Arizona, you may also want to benchmark wage-and-hour frameworks in other states (e.g., alabama minimum wage) to anticipate policy differences.
Arizona Sick Leave Law PDF: What People Usually Mean
Many searches for “arizona sick leave law pdf” are really looking for one of the following:
- The text of A.R.S. § 23-371 through § 23-381 (earned paid sick time provisions)
- State-issued guidance/FAQs
- Required workplace notices/posters
Actionable tip: Keep a compliance folder (digital or physical) with the statute citation, your written policy, and the posters/notices you provide to employees. This makes audits, employee questions, and onboarding far easier.
FAQ: Arizona Paid Sick Leave
How fast do employees accrue Arizona paid sick time?
Employees accrue at 1 hour per 30 hours worked, subject to the annual usage caps (24 hours for employers under 15 employees; 40 hours for 15+).
Does sick time roll over in Arizona?
Generally yes, unused earned paid sick time carries over, though employers may still cap annual use at 24/40 hours.
Do employers have to pay out sick time in Arizona when someone quits?
Typically no, unless your policy or agreement promises payout.
SwiftSDS helps employers stay compliant with workplace posting and labor law requirements across jurisdictions. For a broader compliance view beyond Arizona paid sick leave, review our Employment legislation list and guidance on electronic posters for distributed teams.