States

Benefits rules in Arizona

Arizona's main addition to federal law is earned paid sick time, with a yearly cap that depends on your size.

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Last updated: 2026-10-26

In Arizona, the federal rules on health coverage, COBRA and family leave apply as they do everywhere. The state’s own addition for most employers is earned paid sick time.

Earned paid sick time

Arizona workers earn at least one hour of paid sick time for every 30 hours they work.

How much they can earn or use in a year depends on the size of the business:

  • Fewer than 15 employees: up to 24 hours a year.
  • 15 or more employees: up to 40 hours a year.

In both cases, an employer can choose a higher limit.

Health coverage

The federal rule for applicable large employers applies in Arizona as in every state. It starts at 50 full-time employees, counting full-time equivalents. See do I have to offer health insurance.

Questions to bring to your advisor

  • Which sick time cap applies to us, and do we want a higher one?
  • How does our paid time off policy fit with the sick time rule?
  • What could we offer on health coverage before we reach 50?

Where these facts come from

Questions owners ask

How fast do Arizona workers earn paid sick time?

At least one hour of earned paid sick time for every 30 hours worked.

Is there a yearly cap on paid sick time in Arizona?

At an employer with fewer than 15 employees, workers can earn or use up to 24 hours a year. At an employer with 15 or more, the cap is 40 hours. An employer can set a higher limit.

Does the federal health coverage rule apply in Arizona?

Yes, as in every state. It applies to employers with 50 or more full-time employees, including full-time equivalents, on average during the prior year.

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