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.
Facts reviewed against primary sources in September 2026
| Requirement | Arizona | Detail |
|---|---|---|
| State minimum wage | $15.15/hr | Increases annually with CPI. Tipped minimum is $12.15 with the $3.00 tip credit. Flagstaff (about $18.35) and Tucson (about $15.45) set higher local rates |
| E-Verify | All employers | Arizona law mandates E-Verify for every employer - not just federal contractors |
| Paid sick leave | 40 hrs/year | 24 hrs/year for small employers (fewer than 15 employees) |
| Final paycheck | 7 working days (discharge) | A.R.S. 23-353(A) gives a discharged employee seven working days or the end of the next regular pay period, whichever is sooner. An employee who resigns is paid on the next regular payday |
| Non-competes | Generally enforceable | Courts apply reasonableness test; broad restrictions often narrowed or voided |
| Salary history ban | None | Arizona has no salary history ban in either the public or private sector, and state law preempts local ordinances that would create one |
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 Arizona-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 at Arizona's flat 2.5% rate, with the employee electing their withholding percentage on Form A-4 rather than using allowances, plus 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 seven working days of a discharge, or on the next regular payday after a resignation. 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 January when the new figure 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 Arizona's classification and compliance rules. We prepare compliant contracts and payroll setup.
Onboarded with Arizona-compliant contracts, benefits enrolled, payroll running from day one.
Payroll runs on Arizona rules. 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.
It depends on how the employment ended. Under A.R.S. 23-353(A), a discharged employee must be paid within seven working days or by the end of the next regular pay period, whichever is sooner. Under 23-353(B), an employee who resigns is paid on the next regular payday. The two are often stated as one rule, which leads employers to rush a resignation payout or miss the tighter discharge deadline. Failure to comply gives employees the right to recover wages plus treble damages. WorkGenius applies the correct deadline to each separation type.
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. WorkGenius updates pay rates automatically with each annual adjustment and notifies affected employees, though Arizona sets no statutory notice period for the change itself.
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