Leave The hiring to a local expert
- Minimum Wage: As of 2024, Arizona's minimum wage is $14.35 per hour, with higher rates in certain localities, such as Flagstaff at $17.40 per hour.
- Overtime: Arizona adheres to federal overtime regulations, requiring 1.5 times the regular pay rate for hours worked beyond 40 in a workweek.
- Sick Leave: Employers must provide paid sick leave, accruing at a rate of 1 hour for every 30 hours worked. Caps are set at 24 hours annually for employers with fewer than 15 employees and 40 hours for those with 15 or more employees.
- Meal and Rest Breaks: Arizona does not mandate meal or rest breaks; thus, federal guidelines apply.
- Payroll Schedule: Employers are required to pay employees at least twice a month, with no more than 16 days between pay periods.
- Tax Compliance: Employers must contribute to state unemployment tax, with rates ranging from 0.05% to 14.03% on the first $8,000 of wages. Arizona imposes a flat income tax rate of 2.5%.
PEOs offer small businesses access to competitive benefits, such as health insurance and retirement plans, often at reduced costs due to pooled purchasing power. This enables businesses to provide attractive benefits packages without meeting high employment minimums.
- Workplace Safety: Arizona follows federal OSHA standards to ensure workplace safety.
- Workers’ Compensation: Employers are required to carry workers' compensation insurance, with rates varying by industry and job classification.
- Enforcement Agencies: The Industrial Commission of Arizona (ICA) enforces labor laws within the state.
- Overlapping Laws: In cases where state and federal laws overlap, the law most favorable to the employee typically applies.
Check out our comprehensive state hiring guide.



.webp)


.png)








