Nobody ever said running a business was a walk in the park. As an employer, you have a lot of balls in the air, and compliance is just one of them. One really, really important one that, if dropped, could cost you a whole lot of money.
In addition to federal regulations, each state has their own share of employment-related laws that business owners need to be aware of. Here, we’re highlighting some of these key state-specific requirements and laws, and offering guidance to help you keep up.
Bear in mind, this list is not comprehensive, and there may be local or industry-specific employment requirements that your business needs to comply with. It’s best to consult with counsel to ensure compliance with all applicable laws, as Justworks does not provide legal advice.
Payroll Tax Accounts
Because Justworks reports state unemployment taxes on your behalf, you’ll need to close your Arizona state unemployment and withholding accounts prior to joining our platform. See the link below for more on how to close those accounts.
Recruiting & Hiring Practices
The Legal Arizona Workers Act requires that all employers in Arizona enroll and participate in E-Verify which allows participating employers to electronically verify the employment eligibility of their employees. E-Verify compares information from Form I-9 to government records to confirm that an employee is authorized to work in the U.S.
State Regulation: Legal Arizona Workers Act
Arizona rules on overtime and minimum wage can be found at the link below.
Industrial Commission of Arizona: Labor Dept. - Minimum Wage
You can also find additional guidance for employers in Arizona in the FAQs found here.
The localities in Arizona, listed below, have a higher minimum wage than at the state level. Where both laws apply to an employee based on worksite, the law that favors the employee should be followed. Minimum wages in these localities are always changing, and this list is always growing. The very best way to ensure compliance with all applicable laws is to consult with legal counsel.
Paid Sick Leave
Under Arizona’s paid sick leave law, all employees in Arizona are eligible to accrue at least one hour of paid sick leave for every 30 hours worked for each calendar year (or other 12-month period).
In Arizona, the final paycheck for separating employees should be issued no later than seven working days from the final date worked, or on the next scheduled payday, whichever occurs first.
Employees working in Arizona who resign must be paid on the next scheduled payday.
AZ State Legislature: Payment of wages of discharged employee; violation; classification
AZ Dept. of Employment Security: How to file a claim for unemployment insurance benefits
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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.