Looking For Reliable Employer of Record Services Arizona?
Here’s some essential employment information we think you should know.
Simplify Hiring with Specialized HR Services in Arizona
HR Options takes pride in becoming your strategic partner for workforce management. Our specialized EOR services in Arizona allow you to find seasonal staff, project specialists, or long-term partners. We tackle all employment challenges with care and precision to help your business grow without limits. Here’s what our HR experts handle
- Other aspects of the employment cycle
- Handling employee relations
- Collecting timesheets
- Running payroll
- 1099s
- W-2s
- On-boarding
- Off-boarding
Valuable Benefits for Employees in Arizona
At HR Options, we help you build a comprehensive benefits package to attract and hire the best talent for your business. Our team understands what Arizona employees need and expect, so we can create plans that make your workers feel valued and supported. Depending on the organization, our benefits package usually includes some or all of these perks:
- 401(k) Plan
- Life Insurance
- Medical Insurance
- Vision Insurance
- Dental Insurance
- Long-term Disability Insurance (LTD)
- Group Voluntary Benefits
- Health Saving Plan (HSA)
- Flexible Spending Account (FSA)
- Retirement Plan
Basic Information About the Employment in Arizona
Apart from providing dedicated Employer Of Record services in Arizona, we ensure your compliance with state and federal employment laws. These laws protect employees from discrimination based on age, religion, gender, and race. Here’s some essential employment information we think you should know.
What Is the Minimum Wage Rate in Arizona?
The current minimum wage in Arizona is $14.35 per hour as of 2024. This rate applies statewide and is adjusted annually based on inflation and cost-of-living calculations. However, certain cities in Arizona have established higher local minimum wages. For instance, Flagstaff’s minimum wage is currently $17.40 per hour.
Arizona’s minimum wage is expected to increase by 35 cents to $14.70 per hour in 2025. Meanwhile, the minimum wage in Flagstaff would increase to $17.95.
What Is Considered Full-Time Employment in Arizona?
Arizona law states a typical full-time workweek consists of 40 hours. However, definitions of full-time employment can vary depending on the employer and applicable regulations. For instance, the Affordable Care Act (ACA) defines full-time employment as working 30 or more hours per week. To avoid confusion, employees should confirm their employer’s specific policy on full-time status, as it impacts eligibility for benefits, pay, and overtime.
What Is Considered Part-Time Employment in Arizona?
In Arizona, employees are considered part-time if they work less than 30 hours a week or less than 130 hours per month. These employees generally do not receive the same benefits or compensation as full-time workers. Employees should confirm with their employer to understand their specific work hours and eligibility for benefits.
How Do Employees Get Paid Overtime in Arizona?
In Arizona, the standard workweek is 40 hours, and overtime pay applies to hours worked beyond this. The overtime rate is typically 1.5 times the employee’s regular hourly wage. This requirement applies to most employees, but some exemptions are based on job type and industry. Employees can verify their eligibility for overtime pay based on their specific roles and job duties.
How Much Time It Takes for Onboarding in Arizona?
Our EOR service experts ensure a quick onboarding process in Arizona, with a minimum timeline of 2 working days after collecting all required information. A work eligibility assessment may add up to 3 extra days for non-US citizens.
Clear Details of New Hire
Paperwork Requirements in Arizona
Arizona employers must provide the following documents and notices to new hires:
Employee Withholding Forms
Employers must get an Arizona Employee's Withholding Election, federal Form W-4, and Form A-4 from each new hire.
Minimum Wage Notice
Employers must notify new hires of minimum wage law in Arizona.
Tip Credit Notice
If hiring employees in positions that regularly receive tips, provide written notice before applying for a tip credit.
Travel Reduction Notice
Inform new hires about travel reduction measures as required by law.
Paid Sick Time Notice
Provide notice of employees' rights to paid sick time.
Local Requirements
Follow additional paperwork requirements for new hires in Flagstaff.
Employment Taxes in Arizona
In Arizona, statutory fees and employment taxes impact employees’ overall payroll and paychecks. Here’s a quick breakdown of known taxes in this state:
Employer Taxes
| Employment Tax | Tax Percentage |
|---|---|
| FICA (Medicare) | 1.45% |
| FICA (Social Security | 6.2% |
| State unemployment insurance tax (SUTA) | 0.07% to 18.78% |
| Federal unemployment insurance tax (FUTA) (charged on the first $7,000 earnings per year of an employee) | 6% |
Employee Taxes
| Tax Type | Tax Percentage |
|---|---|
| FICA (Medicare) | 1.45% |
| FICA (Social Security | 6.2% |
| State income tax | 2.5% |
| Federal income tax | 10% to 37% |
Important Leave Laws in Arizona
| Leaves Title | Law |
|---|---|
| Bereavement Leave | Arizona has no state law requiring employers to provide bereavement leave. However, many employers offer unpaid leave as part of their company policies. |
| Sick Leave | According to the Fair Wages and Healthy Families Act (FWHFA), all full-time, part-time, and seasonal employees can get paid sick leave. Employees can earn one hour of paid sick leave for every 30 hours worked. Employers with fewer than 15 employees must provide at least 24 hours of paid sick leave annually. |
| Blood/Organ/Bone Marrow Donation Leave | Arizona does not have a specific law mandating leave for blood, bone marrow, or organ donation. However, employers may voluntarily offer leave, and employees may use paid time off (if available) for donation activities. |
| Court Attendance/Witness Leave | Employees in Arizona who are subpoenaed as witnesses or summoned to attend court proceedings will go because employers cannot penalize them for attending court. However, employers can ask employees to use sick or personal leave to fulfill a legal obligation. |
| Court Attendance/Witness Leave | Employees in Arizona who are subpoenaed as witnesses or summoned to attend court proceedings will go because employers cannot penalize them for attending court. However, employers can ask employees to use sick or personal leave to fulfill a legal obligation. |
| Crime Victims' Leave | Arizona law under ARS § 13-4439 provides job protection for employees who are victims of a crime. Employees can take unpaid leave to participate in legal proceedings related to the crime. Employers cannot retaliate against employees for using this right. |
| Domestic/Sexual Violence Victims' Leave | Under ARS § 13-4439 and related statutes, Arizona employees who are victims of domestic or sexual violence (or whose family members are victims) can take unpaid leave to attend court hearings, seek medical attention, obtain counseling, or relocate for safety. Employers may request documentation to verify the need for leave. |
| Election Officials' Leave | Arizona has no specific law mandating leave for employees to serve as election officials. However, many employers provide time off for employees to vote in primary or general elections. Employers should check local policies or agreements regarding election-related leave. |
| Family and Medical Leave | According to the federal Family and Medical Leave Act (FMLA), eligible Arizona employees can take up to 12 weeks (3 months) of unpaid, job-protected leave per year. To qualify for FMLA, the employee must have worked at least 1,250 hours over the past year for a covered employer. |
| Family Military Leave | There is no state-specific family military leave law in Arizona, but employees stay safe under the federal Family and Medical Leave Act (FMLA). FMLA includes provisions for eligible employees to take leave for certain military family needs, such as deployment-related activities or caring for an injured service member. |
| Jury Duty Leave | Under Arizona law ARS § 21-236, employers must allow employees to serve on jury duty. All permanent employees who take time for jury duty are protected under the Jury System Improvements Act (JSIA). Employers cannot terminate or penalize employees for fulfilling this civic duty. However, employers are not required to pay employees during this time unless the company has specific policies. |
Which Laws Law Apply to Your Organization?
In the USA, every state has specific laws for employers and employees. That’s why keeping your business aligned with rules and regulations is essential to avoid any penalties. At HR Options, we ensure your business stays fully compliant with all relevant state and federal employment laws as your employer of record. Below are some of the key regulations that may apply to your organization in Arizona:
| Law | Applies To | Description |
|---|---|---|
| Arizona Civil Rights Act (ACRA) | Employers with 15+ employees (all employers for sexual harassment) | This law prohibits discrimination based on color, race, age, religion, national origin, or disability. |
| Arizona Equal Pay Law | All employers | Ensures equal pay for equal work regardless of gender. |
| Arizona Minimum Wage Act | All employers | Requires compliance with state minimum wage requirements. |
| Arizona Occupational Safety and Health Act | All employers | Mandates a safe and healthy working environment. |
| Arizona Workers' Compensation Law | All employers | Covers expenses for all work-related injuries or illnesses. |
| Child Labor Laws | All employers | Adds limits to the employment of minors (under 16 years, including work hours and occupations. |
| Credit Checks Law | All employers | Restricts the use of credit information for employment decisions. |
| Crime Victim Leave Law | Employers with 50+ employees | Provides unpaid leave for employees who are victims of crimes to attend court hearings. |
| Drug Testing Law | All employers | Allows workplace drug testing under certain conditions. |
| Employment Protection Act | All employers | Governs wrong termination claims and offers employment protection. |
| Employment Security Law | All employers | Provides unemployment insurance for eligible employees. |
| Fair Wages and Healthy Families Act | All employers | Establishes paid sick leave requirements and fair wage standards. |
| Health Care Continuation Law | Employers with 1–19 employees | It ensures the continuation of healthcare benefits after employment ends, similar to COBRA law for smaller employers. |
| Jury Duty Leave Law | All employers | Requires employers to provide unpaid leave for jury duty without retaliation. |
| Legal Arizona Workers Act (LAWA) | All employers | Allows using E-Verify to ensure employees are legally authorized to work in the U.S. |
| Military Leave Law | All employers | Protects job rights for employees serving in the military. |
| Payment of Wages Law | All employers | Regulates the timely payment of wages to employees. |
| Safe Driving Laws | All employers | Imposes restrictions on employee driving behavior, such as prohibiting calling while driving. |
| Smoke-Free Arizona Act | All employers | Prohibits smoking in enclosed public places and workplaces. |
| Voting Leave Law | All employers | Requires employers to provide employees time off to vote in elections. |
| Weapons in the Workplace Law | All employers | Allows employees to store lawfully owned firearms in restricted access areas. |
Ready to Streamline Your Hiring Process?
Let our HR specialists handle your Employer of Record services and ensure compliance to grow your business with freedom.