Understanding Arizona Leave Laws is essential for both employers and employees. While Arizona Leave Laws does not mandate vacation leave, it has specific regulations for Paid Sick Leave (PSL) and other types of leave. This guide, brought to you by Day Off, covers key aspects of PTO, sick leave, and additional leave entitlements under Arizona law. Whether you’re an employer or an employee, this article provides crucial information on leave policies, accrual rules, rollover provisions, and the impact of federal laws like the Family and Medical Leave Act (FMLA). Dive in to effectively manage leave and ensure compliance with Arizona regulations.
Paid Time Off (PTO) in Arizona
While Arizona state laws do not mandate paid time off (PTO), employers are obligated to provide Paid Sick Leave (PSL). Many employers choose to offer vacation leave, whether paid or unpaid, based on their internal policies and collective bargaining agreements.
Leave Quota
Arizona does not require employers to provide vacation leave. If an employer does offer vacation leave, it must align with the company’s policies and employment contracts, as specified under AZ Statute 23-350(5).
Accrual
Employers can set caps on the accrual of vacation time. However, they must allow employees to accrue and use paid sick leave according to state law.
Rollover
Arizona permits the “Use-It-or-Lose-It” policy, which allows employers to require employees to use their vacation time by a specific date or forfeit it. This policy must ensure that employees have reasonable time to use their vacation leave. Employers benefit from this as it prevents the accumulation of extensive PTO, which could be costly if paid out upon employee termination.
Payment of Accrued, Unused Vacation on Termination
State law does not guarantee the payment of accrued PTO upon termination. The decision depends on the employer’s policy and the employee’s contract. Employers are allowed to implement policies that disqualify employees from receiving payment for unused vacation under specific conditions, such as not providing timely notice of resignation or termination for cause.
Sick Leave in Arizona
Arizona Federal Laws – Leave Quota
Under the Family and Medical Leave Act (FMLA), employees are entitled to 12 weeks of unpaid, job-protected leave for reasons such as maternity leave, serious health conditions, or caring for a family member with a serious health condition.
Arizona Paid Sick Leave
Since the enactment of the Healthy Families and Fair Wages Act in 2017, most employers are required to provide paid sick time to all employees. Employees accrue one hour of paid sick leave for every 30 hours worked. Employers with 15 or more employees must allow a maximum accrual of 40 hours per year, while smaller employers must allow up to 24 hours per year. Unused sick leave must be rolled over to the following year, up to the maximum yearly accrual amount.
Payout of Sick Leave upon Termination
Paid sick leave does not have to be paid out when employment ends. The law does not require employers to compensate for unused paid sick time at the end of employment.
Maternity, Paternity, FMLA in Arizona
Arizona does not have specific maternity or paternity leave laws beyond the federal FMLA provisions. Employers must comply with FMLA, which provides up to 12 weeks of unpaid leave. The Pregnancy Discrimination Act protects employees from discrimination based on pregnancy. Additionally, the Arizona Civil Rights Act prohibits gender-based discrimination, which includes maternity and pregnancy.
Bereavement Leave in Arizona
There are no state or federal requirements for employers to provide paid or unpaid bereavement leave. Private companies may choose to offer bereavement leave based on their internal policies.
Jury Duty Leave in Arizona
Arizona law mandates that employers must provide unpaid leave for employees to serve on a jury. Employers cannot force employees to use their vacation or sick leave for jury duty and must reinstate employees to their previous or equivalent positions upon their return from jury duty.
Military Leave (National Guard Leave) in Arizona
Employers must grant unpaid leave to employees serving in the National Guard or U.S. military reserves. Federal law (USERRA) and Arizona state law provide protections and rights for military service members, ensuring they can return to their civilian jobs without losing seniority or benefits.
Voting Leave in Arizona
Arizona requires employers to provide up to three hours of paid leave for employees to vote in elections, provided the employee gives notice at least one day before the election. Employers may designate the time for voting leave to ensure three consecutive hours are available for employees to vote.
Arizona State Holidays for 2024
There are no state or federal laws mandating holiday leave, whether paid or unpaid. Private employers can require employees to work on holidays and are not obligated to pay extra unless stipulated by company policy.
Employers must adhere to their own established policies and employment contracts if they choose to provide holiday leave.