Understanding the rules around Paid Time Off (PTO) and leave laws in Arizona is essential for both employers and employees. While Arizona law does not require employers to offer vacation leave, it does impose clear requirements for paid sick time and other leave types. This guide covers important aspects like PTO policies, paid sick leave accrual, federal leave laws, and other types of leave (bereavement, military, jury duty, voting). Whether you’re designing a leave policy or checking your own rights, this overview will help ensure you’re aligned with Arizona regulations.
Paid Time Off (PTO) in Arizona
Leave Quota for Vacation
Arizona state law does not require employers to provide paid or unpaid vacation leave. Employers who choose to offer vacation or PTO must describe those benefits clearly in their policies or employment contracts.
Accrual and Limits
When vacation or general PTO is provided, employers in Arizona have flexibility. They may set accrual rates, caps, and rollover rules, so long as those are communicated.
“Use-It-or-Lose-It” and Rollover
Arizona allows employers to adopt “use-it-or-lose-it” policies for vacation/PTO, meaning unused leave can be forfeited if the policy provides for that, provided employees have had a reasonable opportunity to use the leave.
Payout of Unused Vacation on Separation
No Arizona law automatically requires payout of unused vacation or PTO upon employment termination. If a policy or contract states that payout will happen, it must be honored; otherwise, the employer may not be obligated.
Paid Sick Leave in Arizona
Legal Requirement and Accrual
Arizona’s Earned Paid Sick Time law (under the Fair Wages and Healthy Families Act) requires most employers to provide paid sick leave. Employees accrue at a rate of 1 hour of paid sick time for every 30 hours worked.
Caps Based on Employer Size
For employers with 15 or more employees, employees may earn up to 40 hours of paid sick leave per year.
For employers with fewer than 15 employees, the cap is up to 24 hours per year, unless the employer chooses a higher limit.
Carryover of Unused Sick Time
Unused paid sick time must generally carry over into the next year, up to the employer’s cap, unless the employer front-loads the full amount and policy states otherwise.
Use of Paid Sick Leave
Employees may use paid sick leave for their own illness, a family member’s illness, preventive care, or in certain cases of domestic violence or stalking. Employers must not retaliate against employees using paid sick time.
Payout of Unused Sick Leave on Separation
Arizona law does not require payout of unused paid sick leave when employment ends unless the employer’s policy requires it.
Federal Leave & Additional Leave Types
Family & Medical Leave (FMLA)
Under the federal Family and Medical Leave Act (FMLA), eligible employees in Arizona may take up to 12 weeks of unpaid, job-protected leave for qualifying family or medical reasons (such as childbirth or caring for a sick family member).
Maternity, Paternity & Discrimination Protections
Arizona does not have separate state-mandated maternity or paternity leave beyond FMLA, but protections exist under federal law, such as the Pregnancy Discrimination Act and the state’s civil rights law prohibiting discrimination based on pregnancy or gender.
Bereavement Leave
Arizona law does not require employers to provide paid or unpaid bereavement leave. It is optional and depends on employer policy.
Jury Duty Leave
Employees must be granted unpaid leave to serve jury duty; employers cannot force employees to use sick or vacation leave for jury service. Upon return, employees must be reinstated.
Military Leave
Under federal law (Uniformed Services Employment and Reemployment Rights Act, USERRA) and Arizona state law, employees serving in the U.S. military or National Guard are entitled to unpaid leave and job protection.
Voting Leave
Arizona law requires employers to provide up to three hours of paid leave for employees to vote in any election, if their work schedule does not allow sufficient time otherwise. The employee must give notice at least one day before.
State Holidays
Private employers in Arizona are not legally required to provide paid holiday leave. If holiday leave is offered, it must follow the employer’s policy or contract.
How Employers and Employees Can Use the Day Off App
With multiple types of leave and state law requirements in Arizona, using a leave-management platform like the Day Off app can help:
Automatically track accruals of paid sick leave and PTO.
Apply caps, carryover rules, or “use-it-or-lose-it” settings as per policy.
Give employees clear visibility into their leave balances, usage, and rights.
Simplify policy compliance and reduce administrative burdens.
Frequently Asked Questions
What difference does a paid sick leave law make compared to vacation leave?
Paid sick leave is a legal requirement in Arizona for most employers and is meant for health-related absences. Vacation or general PTO is optional and at the employer’s discretion. If an employer offers PTO, they can set its rules, but it does not replace the required paid sick leave.
Can an employer take away my unused sick time at year-end?
No. Unused sick time must carry over from year to year up to the maximum annual amount allowed (24 or 40 hours, depending on employer size) unless a “front-load” approach is used, where the full annual amount is given atthe start of the year and carry-over is not required.
Am I guaranteed paid vacation leave in Arizona?
No. Vacation leave is not mandated by Arizona law. Whether you receive paid vacation depends entirely on your employer’s policy or employment contract.
If I quit or am terminated, will my unused PTO or sick time be paid out?
For PTO or vacation leave, payment depends on your employer’s policy, Arizona law does not require payout unless the policy provides for it. For paid sick leave, Arizona law does not require payout of unused sick time upon separation.
What if my employer has a “use-it-or-lose-it” policy for vacation or PTO?
Such policies are generally allowed under Arizona law, provided the policy is clearly communicated, gives employees a reasonable opportunity to use the time, and is consistent with employment agreements.
How much paid sick leave do I earn if I work in Arizona?
You accrue 1 hour of paid sick leave for every 30 hours worked. For employers with 15 or more employees, the maximum use per year is 40 hours; for fewer than 15 employees, it’s 24 hours.
Can I request leave for non-medical reasons using paid sick leave?
No. Paid sick leave must be used for the purposes defined by law, your own or a family member’s illness, medical care, or certain safety situations (e.g., domestic violence). For other reasons, you would use vacation, PTO, or unpaid leave if available.
What should I check in my employer’s leave policy?
Look for clarity on how much PTO or vacation is offered, whether it accrues, if there is a carry-over or forfeit policy, what rights you have to paid sick time, and any caps or payout rules. Know your rights under the state’s paid sick leave law.
How does the Day Off app help me as an employee?
The Day Off app gives you a real-time view of your accruals, balances, and usage. It helps you plan your time off, request leave efficiently, and ensures you’re getting your rightful sick leave and PTO benefits as per company policy and law.
Conclusion
In 2026, Arizona’s leave laws present a mix of mandatory and optional benefits. While vacation or general PTO remains up to the employer, paid sick leave is a mandated right for most workers, and federal leave protections cover time off for family or medical reasons. Employers should clearly document their policies, communicate them to employees, and use robust tools like the Day Off app to manage leave effectively. Employees should review and understand their company’s policy, know their legal rights, and plan their leave accordingly. With proper awareness and organization, both sides can handle leave in a fair, lawful, and balanced way.