Arizona is one of the few states that mandates E-Verify for every employer, regardless of size — alongside earned paid sick time and growing minimum wage. WorkGenius becomes your legal employer across Phoenix, Scottsdale, Tempe, and Tucson — handling all Arizona-specific compliance automatically.
Arizona was the first state to mandate E-Verify for all employers — not just federal contractors. Under A.R.S. §23-214, every employer in Arizona must verify the employment eligibility of all new hires through the federal E-Verify system. The penalty for non-compliance isn't just a fine — it's the suspension or permanent revocation of the employer's business license.
Get AB5-Compliant TodayArizona's mandatory E-Verify requirement, growing minimum wage, and Prop 206 sick time rules require careful administration for every new hire.
WorkGenius initiates and completes E-Verify for every Arizona employee before their start date. I-9 documentation retained for the required period.
State income tax withholding with correct flat rate, weekly or biweekly pay schedules, and accurate overtime calculations for all worker types.
Accrual at 1 hour per 30 hours worked (up to 40 hours/year for employers with 15+ employees, 24 hours for smaller). Carryover, permitted uses, and abuse prevention tracked.
Non-compete agreements drafted within Arizona's reasonableness framework. Non-solicitation and confidentiality protections structured for enforceability.
Arizona requires workers' comp for all employees. WorkGenius ensures coverage is in place from day one and manages claims administration.
Final paycheck issued within 7 business days (or next regular payday if sooner). Compliant separation documentation and COBRA notices handled.
Arizona is one of only a handful of states that mandates E-Verify for every employer — not just federal contractors. WorkGenius runs the full Arizona compliance checklist on every hire: E-Verify, earned paid sick time, and final pay — all managed automatically.
Beyond E-Verify, Arizona has a growing set of employee protections tied to its annual minimum wage increases.
Arizona's Fair Wages and Healthy Families Act (Prop 206) ties the minimum wage to CPI, with adjustments each January. Employers must update pay rates each year and notify employees 14 days before any wage change takes effect.
All Arizona employees accrue earned paid sick time at 1 hour per 30 hours worked. Employers with 15 or more employees must allow accrual up to 40 hours/year; smaller employers cap at 24 hours. Sick time may be used for personal illness, family care, or domestic violence situations.
Arizona does not ban non-competes outright, but courts apply a strict reasonableness test — reviewing geographic scope, duration, and whether the restriction is actually necessary to protect a legitimate business interest. Overly broad agreements are often blue-penciled or voided entirely.
Arizona requires workers' compensation coverage for all employers with at least one employee. There is no minimum headcount exemption. Coverage must be in place before an employee's first day of work.
From first conversation to fully compliant employment — typically within days.
Workers, roles, locations, and start dates. We tailor the setup to your needs.
Our AI runs every worker through California's ABC test. We prepare compliant contracts and payroll setup.
Onboarded with California-compliant contracts, benefits enrolled, payroll running from day one.
Payroll runs with daily OT. Taxes filed. Compliance monitored. One weekly invoice.
Yes. Arizona's employer sanctions law (A.R.S. §23-214) requires every employer in the state — regardless of size or industry — to verify new hires through E-Verify. There is no small-employer exemption. The penalty for non-compliance starts with a 10-day business license suspension and escalates to permanent revocation for repeat violations. WorkGenius initiates E-Verify for every Arizona employee as a standard part of onboarding.
Proposition 206, passed by Arizona voters in 2016, established both the minimum wage schedule and mandatory earned paid sick time. All employees accrue sick time at 1 hour per 30 hours worked. Employers with 15 or more employees must allow up to 40 hours of accrual per year; smaller employers cap at 24 hours. Sick time may be used for personal illness, medical appointments, care for a family member, or domestic violence or sexual assault situations. WorkGenius tracks accrual and balances automatically.
Arizona law requires final pay within 7 business days of the last day of work — or by the next regular payday, whichever comes first. This applies to both voluntary resignations and involuntary terminations. Failure to comply gives employees the right to recover wages plus treble damages. WorkGenius handles final pay processing as part of its standard termination workflow.
Generally yes, but Arizona courts apply a reasonableness test. A non-compete that is too broad in geographic scope, duration (typically more than 1–2 years), or covered activities may be narrowed by the court (blue-penciled) or voided entirely. To be enforceable, the restriction must protect a legitimate business interest — trade secrets, customer relationships, or specialized training. WorkGenius drafts non-compete clauses that are structured to hold up under Arizona's reasonableness standard.
Arizona's minimum wage adjusts each January 1 based on the prior year's cost of living (CPI). This has been in effect since 2017 under Proposition 206. Employers must notify employees of any wage change at least 14 days before it takes effect. WorkGenius updates pay rates automatically with each annual adjustment and generates the required notifications.
WorkGenius handles AB5 classification, California payroll, benefits, and every other compliance requirement so you don't have to. Get started today.
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