Under Arizona’s paid sick leave law, all employees in Arizona, with a few exceptions, are eligible to accrue and use one hour of paid sick leave for every 30 hours worked each calendar year (or other 12-month period).
- Have employees accrue paid sick time at a rate of 1 hour for every 30 hours worked, or
- Grant, up front, the projected amount of paid sick leave each employee is expected to accrue for the year, at the beginning of each 12-month period.
Employers with 15 or more employees must allow employees to accrue at least 40 hours per year, and employers with fewer than 15 employees must allow employees to accrue at least 24 hours per year.
There are other requirements under the law, which you can read more on here. Some of these requirements are also detailed further below.
All employees, with a few exceptions, who work in Arizona are entitled to paid sick leave.
Employees may use accrued paid sick time for any of the following reasons:
- Medical care for mental or physical illness, injury, or health condition of the employee or any of the employee’s family members;
- A public health emergency affecting the employee or a family member of the employee;
- An absence due to domestic violence, sexual violence, abuse, or stalking involving the employee or any of the employee’s family members.
Setting up a compliant policy
Employers are required to set up a policy that meets the minimum requirements for Arizona. Arizona’s paid sick leave law outlines the different methods for accruing and paying sick leave time that will satisfy the state law’s requirements, which you can read more about here.
Setting up a “front-load” policy may be the most administratively simple approach. In a “front-load” approach, you grant upfront the minimum leave hours required by the corresponding jurisdiction. You can set up a policy in Justworks by following the directions here.
Employers also need to display a poster for all their employees in Arizona, which includes information on employees’ right to accrue and use paid sick leave.
If your office is based in Arizona, we highly encourage you to print out one of the posters above and display it in your office.
Under Arizona’s paid sick leave law, employers must show, on or as an attachment to each paystub, how much sick leave the employee has available, how much sick leave the employee has taken to date that year, and the amount of pay the employee has received as sick leave. This information may be stored on documents available to employees electronically.
If you set up a paid sick leave policy in Justworks, we will automatically add the balance of accrued, unused sick leave to employee paystubs.
Limitations on Paid Sick Leave
Employees begin accruing paid sick time on their first day of work, but employers can limit their ability to take their paid sick leave until the employee has been employed for 90 days.
An employer is not required to pay out accrued, unused paid sick time when an employee separates from employment with the employer. However, if you are providing paid sick time through your general PTO policy, you may need to pay out all of an employee’s accrued, unused PTO upon separation from employment.
Keep in mind that if a separated employee is rehired within nine months of separation, employers must reinstate their prior unused paid sick leave.
Industrial Commission of AZ: FAQs about Minimum Wage and Paid Sick Time
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.