Human Resource State Employment Law Summary
ARIZONA
Table of Contents
Appearance and Grooming.................................................................................................................... 4 Uniforms ..................................................................................................................................... 4 Arrest and Conviction Records ............................................................................................................. 4 At-Will Employment ............................................................................................................................. 4 Breaks and Rest Periods ........................................................................................................................ 5 Child Labor ............................................................................................................................................ 5 Federal Law ................................................................................................................................ 5 Types of Work ............................................................................................................................ 5 Hours of Work ............................................................................................................................ 6 Permits and Postings ................................................................................................................... 7 COBRA ................................................................................................................................................. 7 Insurance Continuation ............................................................................................................... 7 Employee Conduct and Work Rules ..................................................................................................... 7 Guns in the Workplace................................................................................................................ 7 Equal Employment Opportunity and Equal Pay ................................................................................... 7 Family and Medical Leave (FMLA) ..................................................................................................... 8 Files and Access .................................................................................................................................... 8 Hiring Procedures .................................................................................................................................. 8 Credit and Investigative Checks ................................................................................................. 8 New Hire Reporting Requirements ............................................................................................. 8 Mandatory Background Checks .................................................................................................. 9 Holidays ................................................................................................................................................. 9 Jury, Witness, and Voting Leave........................................................................................................... 9 Jury Leave ................................................................................................................................... 9 Witness Leave ............................................................................................................................. 9 Voting Leave ............................................................................................................................... 9 Crime Victim Leave .................................................................................................................... 9 Labor-Management Relations ............................................................................................................. 10 Layoff and Reduction in Force............................................................................................................ 10 Medical Testing and Examinations ..................................................................................................... 10 Drug (Alcohol) Testing ............................................................................................................. 10 Medical Examinations .............................................................................................................. 11 Genetic Testing ......................................................................................................................... 11 HIV Testing .............................................................................................................................. 11 Military Leave ..................................................................................................................................... 11 Noncompetition Agreements............................................................................................................... 12 Overtime .............................................................................................................................................. 12 Political Activities ............................................................................................................................... 12 Polygraph/Lie Detector Tests .............................................................................................................. 12 Reference Requests ............................................................................................................................. 12 Protection for Employers .......................................................................................................... 12 Sick Leave ........................................................................................................................................... 13 Smoking ............................................................................................................................................... 13 Termination Procedures....................................................................................................................... 13
Paychecks .................................................................................................................................. 13 Service Letters .......................................................................................................................... 13 Unemployment Compensation ............................................................................................................ 13 Vacations ............................................................................................................................................. 13 Wages and Hours................................................................................................................................. 14 Paydays ..................................................................................................................................... 14 Minimum Wage ........................................................................................................................ 14 Withholding or Docking Pay .................................................................................................... 14 Garnishment .............................................................................................................................. 14 Direct Deposit ........................................................................................................................... 14 Living Wage.............................................................................................................................. 14 Workers’ Compensation ...................................................................................................................... 15 Workplace Facilities ............................................................................................................................ 15 Pre-Employment Inquiry Guide .......................................................................................................... 15 Required Posters .................................................................................................................................. 15 Required Federal Posters .......................................................................................................... 15 Required Arizona Posters and Contacts .................................................................................... 16 _______________
STATE LAW SUMMARY
Appearance and Grooming
Uniforms Arizona has enacted no statute governing employee appearance or payment for uniforms. However, it is unlawful for employers to require employees to purchase goods or supplies from any particular person.
Arrest and Conviction Records
Arizona has enacted no statute governing whether employers may obtain criminal history information for employees or job applicants. However, the Arizona Attorney General indicated that, absent a compelling business reason, pre-employment inquiries regarding arrest records are unacceptable. Caution: Private employers considering using arrest or conviction records should do so with caution, even in states that allow the use of arrest or conviction records for employment purposes. An arrest might never result in a criminal guilty plea or conviction and it is always possible that a person has been arrested for something he or she did not do. Moreover, the federal Equal Employment Opportunity Commission has stated that use of conviction records might be discriminatory given that, according to the EEOC, minorities are often more likely to have such a record. The EEOC cautions that employers should only inquire about felony convictions, should state that a criminal record is not an automatic bar to employment and should ensure that there is a legitimate business reason for requesting such information. Employers should consult with their attorneys for more information and guidance on this issue.
At-Will Employment
Arizona law provides that, absent a written employment agreement to the contrary, an employment relationship is an at-will relationship and can be terminated without cause. Adequate contract disclaimers and at-will statements in documents given to employees (handbooks, policies, etc.) can minimize the risk that such documents may be alleged to have created an express or implied employment contract. Under the Arizona Employment Protection Act, an employer cannot discharge an employee for reasons that violate public policy, i.e.: (1) for refusing to engage in conduct that would violate the law; (2) in retaliation for disclosing to the employer a reasonable belief that the employer or another employee has violated the law; (3) for exercising rights under the worker's compensation statute; (4) for jury service; (5) for choosing whether to join a labor
organization; (6) for serving in the armed forces or National Guard; (7) for refusing to pay fees or gratuities as a condition of employment; and (8) for refusing to purchase goods from a particular person as a condition of employment. Employees also cannot be discharged for bad faith reasons, such as to avoid payment of earned benefits. Arizona has a constructive discharge law that protects employees from outrageous employer conduct compelling an employee to resign. Employees are required to give 15 days notice that they believe such conditions exist.
Breaks and Rest Periods
Arizona has enacted no statute that requires private employers to provide breaks and rest periods for employees.
Child Labor
Federal Law Minors may be limited in the hours they work and may not be employed in occupations considered hazardous by federal law or by the U.S. Department of Labor’s rules and regulations. When school is in session, federal law requires work of minors age 14 and 15 to be limited to three (3) hours per day and eighteen (18) hours per week. When school is not in session, minors age 14 and 15 may work up to eight (8) hours per day and forty (40) hours per week between 7:00 a.m. and 7:00 p.m. (or 9:00 p.m. June 1 through Labor Day). Federal law does not limit work hours for minors age 16 and 17, regardless of whether or not school is in session. Except in limited circumstances, employers are generally prohibited from hiring minors under age 14. In addition to these federal restrictions, the following provisions address employment of minors in Arizona. Additional Arizona provisions regulate both the type and hours of work in which minors can engage. Note that the stricter law, the one that most benefits employees, prevails. Types of Work Minors Under 19 Minors under 19 cannot be involved in the manufacture, sale or disposition of liquor. Minors Under 18 Minors under 18 cannot be involved in the following hazardous activities: manufacturing or storing explosives; driving or helping to drive a vehicle; mine, quarry or logging occupations; operating woodworking machines; exposure to radioactive substances; work with power-driven hoists (except automatic elevators); operation of power-driven metal
working, forming, punching or shearing machines; slaughtering or meatpacking; work with meat processing machines; use of power-driven bakery or paper products machines; manufacture of clay construction products or silica refractory products; operation of power-driven saw; wrecking, demolition and shipbreaking; roofing; excavation and tunnel operations (except manual trench work, excavation or backfilling); or as a railroad telephone or telegraph operator. Minors Under 16 Minors under 16 cannot be employed in certain hazardous jobs or occupations, such as: manufacturing; processing; laundering or dry cleaning in commercial laundry; working in boiler, furnace or other engine rooms; working from a ladder, window sill, or similar structure more than 5 feet in height; retail food or gasoline service activities such as maintenance or repair of machines, courtesy service, car cleaning, washing and polishing (but not including tire inflation), cooking and baking (except at soda fountain, lunch counters, snack bars or cafeteria serving counters); operating power-driven food slicers, grinders, choppers and cutters, and preparation of meat for sale (except wrapping, sealing, labeling, weighing, pricing and stocking). Nor can persons younger than 16 be involved in the following agricultural activities: operation of a tractor, corn picker, cotton picker, grain combine, hay mower, forage harvester, hay baler, potato harvester, mobile pea viner, feed grinder, crop dryer, forage blower, angler conveyor, post hole digger, rotary tiller, trencher, earth moving equipment, or potato combine; work in bull, boar or stud horse pens; work with sows with young pigs or cows with newborn calves; felling; bucking, skidding or unloading timber with butts more than 6 inches in diameter; picking or pruning from a ladder over eight feet above the ground; helping on a bus or tractor; working inside a fruit or grain storage area; working in a manure pit; handling hazardous chemicals or explosives; and dealing with anhydrous ammonia. Exceptions apply to minors working on family farms. Minors Under 10 Minors under 10 cannot be involved in the sale of newspapers, periodicals or other merchandise in public places. Hours of Work Minors Under 14 Minors under age 14 cannot be employed during any school hours. Minors Under 16 Minors under age 16 who are not enrolled in school cannot work more than 8 hours per day and 40 hours per week. Persons under age 16 who are enrolled in school are subject to the same restriction when school is not in session. Night work is prohibited from 9:30 p.m. to 6 a.m. before school days and from 11 p.m. to 6 a.m. before non-school days. Door-to-door solicitation sales or deliveries are prohibited after 7 p.m. for minors under age 16. This does not apply to minors delivering newspapers to customers.
Permits and Postings Arizona has no statutory provision requiring employment permits or parental consent for the employment of minors. Arizona employers are not required to post notice regarding child labor laws. Child labor law can be both challenging and confusing. Employers of minors should closely review federal and state child labor law differences and contact their attorneys or the Department of Labor to ensure they are in full compliance.
COBRA
Insurance Continuation Many states have legislation requiring small employers (those not subject to COBRA) to provide insurance continuation if an employee becomes ineligible for group coverage (such as through a termination). Such provisions are complex and very technical. You may want to contact your attorney or insurance broker to determine if you are meeting all applicable federal and state requirements.
Employee Conduct and Work Rules
Guns in the Workplace Workplace violence continues to be a concern for employers. Many organizations adopt policies (such as the one found in the HRN manual) banning guns and other weapons on company property. However state law differs widely regarding employees’ weapons rights. You may want to contact the state employment agency or an attorney for further information regarding your specific policy and any possible liability that may result.
Equal Employment Opportunity and Equal Pay
Similar to federal law, Arizona state law prohibits discrimination in employment or terms and conditions of employment based on race, color, religion, sex, age, national origin, or physical disability. Wage discrimination based on gender is also unlawful. It is unlawful for an employer to discriminate against an employee in retaliation for making fair use of a fair employment statute. The Arizona Civil Rights Act applies to employers with 15 or more employees. Complaints of discrimination are filed with the Civil Rights Division of the Office of the Arizona Attorney General. The Arizona Attorney General has published a pre-employment inquiry guide, included at the end of this summary.
Employers must post notice regarding the Civil Rights Law of Arizona. A poster is available from the Civil Rights Division of the Office of the Arizona Attorney General, www.attorneygeneral.state.az.us/civil_rights. Caution: Some municipalities may have adopted city ordinances expanding EEO protections. Please check local laws for more details.
Family and Medical Leave (FMLA)
No Arizona family and medical leave statute affecting private employers has been enacted which imposes greater requirements than the federal FMLA. Caution: Complying with the federal FMLA (and state law, if applicable) can be both challenging and confusing. You will likely want to contact your attorney, the Federal Department of Labor, or the appropriate state agency for further information and clarification.
Files and Access
Neither federal nor Arizona law requires that employees who work for private companies be permitted to review their personnel files.
Hiring Procedures
Credit and Investigative Checks An Arizona employer may use consumer credit reports in hiring, promotion, retention or other employment decisions. However, if an employer makes an adverse employment decision based on a credit report, the employer must disclose to the employee the name and address of the agency that furnished the report. An Arizona employer must also comply with the Federal Fair Credit Reporting Act. New Hire Reporting Requirements Employers must report the hire, rehire, or return to work of any person who resides or works in Arizona to the Department of Economic Security within 20 days after the date of hire, rehire, or return to work (e.g., from leave without pay, furlough or layoff). Employers may submit reports electronically or magnetically in two monthly transmissions not more than 15 days apart. Employers may also submit a W-4 or equivalent form. Reports must contain the employee's name, address and social security number and the employer's name, address and federal tax identification number.
An employer with employees in two or more states may file all hire and rehire reports together after providing notice to the U.S. Department of Health and Human Services. Mandatory Background Checks Many states require mandatory background checks of applicants in certain highly sensitive areas such as in teaching, childcare, healthcare and security positions. Such checks may include criminal history and fingerprint checks, various reporting requirements, and requiring job references. Contact your local state agency or attorney for further information.
Holidays
No Arizona statute has been enacted requiring private employers to give employees paid holiday time off or to pay premium pay for time actually worked on holidays.
Jury, Witness, and Voting Leave
Jury Leave Arizona employers are not required to compensate employees absent for jury duty, but employers cannot refuse to allow leave time for jury service or penalize employees serving on juries. Witness Leave Arizona has no statutory provision regarding witness leave. Voting Leave Employees must be allowed up to three-hours of leave in order to vote, unless the employee already has three consecutive non-working hours while the polls are open. Employees must request voting leave at least one day before the election. The employer may specify which hours the employee may take, and the employer may count non-working hours toward the three-hour total. Employers are not required to compensate employees for voting leave. Crime Victim Leave Certain Arizona employers must allow an employee who is a victim of a crime to take leave from work in order to be present at criminal proceedings related to the offense. In order to take crime victim leave, the employee must provide the employer with documentation available from the relevant law enforcement agency. The crime victim leave law only applies to employers with at least 50 employees, and an employer may be exempt if granting leave would present an undue hardship. Employers are not required to compensate employees who take crime victim leave. However, employers may not discharge or discriminate against an employee who takes such leave.
Labor-Management Relations
Various labor relations laws allow and/or regulate the rights of employees to unionize, bargain collectively, file grievances, picket, strike, and wear union insignia and govern the resolution of labor disputes. Contact the Arizona Industrial Commission, www.ica.state.az.us for more information. Note also that federal law governs, and in fact pre-empts, many aspects of this area of law.
Layoff and Reduction in Force
No applicable Arizona statute exists. Arizona has not enacted a state "WARN" law or other legislation regarding layoffs. However, employers must still comply with the federal WARN Act.
Medical Testing and Examinations
Drug (Alcohol) Testing Arizona law allows private employers to engage in drug and alcohol testing for employees and job applicants, but regulates how such testing may occur. Employers may require a drug test for any job related purpose consistent with business necessity, including: (1) to investigate individual impairment, (2) to investigate accidents, (3) to maintain safety, (4) to maintain productivity, and, (5) where there is reasonable suspicion, to determine whether drug or alcohol use is adversely affecting job performance or the work environment. Additionally, employers may conduct random drug testing. Testing must be done pursuant to a written policy distributed to all employees and available for review by job applicants. The policy must identify all persons subject to testing, circumstances when testing will occur, substances for which testing will be required, testing and collection methods, adverse actions resulting from positive tests or refusals to test, the right of the employee to obtain written test results, and a general statement regarding the confidentiality of test results. All compensated employees, including management, must be uniformly included in the testing policy. Employers must bear all costs of testing, including transportation, for employees. Employers may require job applicants to pay for their own drug test. Employers should schedule tests during work, or immediately before or after a work shift. Testing is considered work time for compensation purposes. Testing must be done under reasonable and sanitary conditions. Employers may designate the type of specimen to be tested. Collection techniques must include: labeling to avoid misidentification of samples; opportunity of tested person to provide any information relevant to the test; collection and storing designed to preclude tampering or misidentification; testing by certified labs; confirmation of positive results by a
different chromatographic technique than that used initially. Samples may not be used to test for any substance or condition except unlawful drugs or alcohol. The Arizona law allows discipline for positive results or refusals to test, including enrollment in employer-approved rehabilitation, refusal to hire, and suspension or termination of employment. Test results and communications received by an employer regarding test results are confidential and may only be disclosed to the employee or job applicant. Compliance with the Arizona drug testing statute immunizes employers from claims arising from the application of their drug and alcohol test programs. Medical Examinations Arizona has no statutory provision regarding mandatory medical examinations. However, Arizona law prohibits employers from requiring payment of a fee as a condition of employment. Payment for a medical examination may be such a fee. Therefore, employers should probably not require employees or job applicants to pay for a medical examination as a condition of employment. Genetic Testing Arizona law prohibits mandatory genetic testing of any employee or job applicant and precludes disclosure of any such test results without written consent. HIV Testing Arizona prohibits mandatory HIV/AIDS testing of any employee or job applicant. Employers may conduct tests with the employee’s written informed consent, but the employee may withdraw consent at any time before issuing the test sample. The Arizona Attorney General opined that AIDS is a disability covered by the Arizona Civil Rights Act. Caution: In addition to state law, employers should also ensure that any testing undertaken conforms with federal law (e.g., the ADA and FMLA). Contact your attorney if you propose to undertake such testing.
Military Leave
Arizona law makes it a crime to deprive a member of the National Guard of employment or to prevent or obstruct employment based on National Guard status. Employers cannot prohibit National Guard members from taking military leave to comply with orders or to attend camps and drills. Military leave cannot affect vacation or seniority rights. National Guard members must be reinstated after military leave.
Caution: Military leave legislation is complicated and technical. In addition to any applicable state law requirements, employers should ensure that they are in compliance with federal laws.
Noncompetition Agreements
Arizona has no statutory provision regarding noncompetition agreements. However, Arizona courts have held that employees owe fiduciary or loyalty duties to their employers. Noncompetition agreements will be enforced if they are not entered into in bad faith, if they are reasonable in terms of time and geographic restrictions and, if they have the purpose of protecting legitimate business interests such as trade secrets, goodwill, and confidential information rather that just limiting competition.
Overtime
No Arizona statute has been enacted that exceeds federal requirements requiring overtime payment of one and one-half times regular pay after 40 hours worked/week. Special provisions limit the work hours of laundry workers, mine workers, public works contractors, railroad workers, and non-agricultural motor carriers or private carriers.
Political Activities
Arizona employers cannot use conditions or matters related to employment to influence or coerce employees on political matters. For example, an employer may not threaten to discharge or demote an employee who votes for a particular candidate.
Polygraph/Lie Detector Tests
Arizona has no statutory requirements that exceed federal requirements. Federal law states that the refusal to take a polygraph cannot be the basis for denying or terminating employment.
Reference Requests
) Protection for Employers Arizona employers are immune from suit for giving job references unless they knowingly or recklessly give false information.
Sick Leave
No Arizona statute requires employers to provide paid sick leave or to pay for accrued paid sick leave at termination. Caution: If sick leave is provided, employers should ensure that it is provided on a nondiscriminatory basis and in accordance with established policy and practice.
Smoking
Smoking is prohibited in libraries, indoor theaters, museums, buses, public restrooms, waiting rooms of healthcare facilities, and in buildings owned or operated by the State, except in designated areas.
Termination Procedures
Paychecks When an employee is discharged, unpaid wages are due within three days or the next regular payday, whichever is sooner. An employee who quits must be paid by the next regular payday. Arizona law does not require employers to compensate employees for accrued but unused vacation time upon termination. Service Letters Arizona has no statute governing whether employers must furnish terminated employees with a written reason for discharge.
Unemployment Compensation
Extensive laws cover this area in Arizona. For information, contact the Arizona Industrial Commission, www.ica.state.az.us.
Vacations
No Arizona statute requires employers to compensate employees for accrued but unused vacation time upon termination. Arizona case law or administrative interpretation may require payment in some circumstances.
Wages and Hours
Paydays In Arizona, wages must be paid two or more days each month and not more than 16 days apart. One or more days each month may be designated as a payday for exempt employees who work for companies with headquarters and centralized payroll systems outside of Arizona. Minimum Wage Arizona has no comprehensive statute governing minimum wage. Withholding or Docking Pay An employer may not withhold a portion of an employee’s wages unless: (1) required by law, (2) authorized by the employee, or (3) subject to a reasonable good faith dispute about wages. Employers may not require employees to pay fees or gratuities as a condition of employment. Assignments may be given to secure small loans if the authorization is in writing with the signatures of the employee and the employee’s spouse. An assignment cannot exceed 10% of the employee’s gross wages, and the assignment period cannot exceed 48 months. Garnishment A garnishment order is treated as a lien against the employee’s nonexempt earnings. If a garnishment will cause an extreme employee economic hardship, a court may limit the garnishment to 15% of the employee’s disposable earnings. For support orders, up to 50% of the employee’s disposable earnings are available for garnishment. Direct Deposit Direct deposit is allowed with the employee’s written consent. Direct deposits must be made to a financial institution of the employee’s choice. The employer must give the employee a statement of earnings and withholdings. Employees must be allowed to make one withdrawal from each deposit without any service charge. Living Wage A number of local governments (e.g. cities, towns, counties, school districts, etc.) have enacted laws known as “Living Wage” ordinances. These laws, although not always imposing the same types of requirements, typically mandate that any entity contracting or doing business with the local government or getting a tax abatement from the local government must pay its employees a set wage. The ordinances are typically called Living Wage ordinances because the set wage rate is typically much higher than the applicable minimum wage, thus better allowing the employees to live on the wage.
An Arizona statute precludes local governments from enacting living wage ordinances. However, Pima County requires county contractors to provide a living wage of not less than $8.00 per hour with benefits or $9.00 per hour without. Tucson County requires city contractors to provide a living wage of $8.26 per hour with benefits or $9.30 without. This area of law is developing rapidly. For more information, including recent developments, see www.livingwage.com.
Workers’ Compensation
Extensive laws cover this area in Arizona. For information, contact the Arizona Department of Employment Security, www.de.state.az.us.
Workplace Facilities
Employers must provide a non-hazardous workplace for employees. Employers must notify employees of their workplace rights. A notification poster, Safety and Health Protection on the Job, is available from the Arizona Industrial Commission, www.ica.state.az.us.
Pre-Employment Inquiry Guide
The Civil Rights Division of the Office of the Arizona Attorney General will provide this guide in pamphlet form. It is not currently available on the world wide web.
Required Posters
Listed below are the current listings for government agencies from which required posters can be obtained. Posters frequently can be obtained free of charge. Poster requirements may change from time to time, and employers should check to assure up to date compliance. Required Federal Posters Fair Labor Standards Act (FLSA) Minimum Wage Family Medical Leave Act (FMLA) Job Safety and Health Protection – Occupational Safety and Health Equal Employment Opportunity Act Migrant and Seasonal Agricultural Worker Protection Act (MSPA) Notice to Work with Disabilities (FLSA, SCA, and Walsh-Healey Act) Employee Polygraph Protection Act (EPPA) Department of Labor website:
These posters can be accessed at the http://www.dol.gov/osbp/sbrefa/poster/main.htm.
Required Arizona Posters and Contacts Job Safety & Health Work Exposure to Bodily Fluids Workers’ Compensation Arizona Industrial Commission P.O. Box 19070 800 W Washington St. Phoenix, AZ 85005 602-542-4411 www.ica.state.az.us Arizona Department of Economic Security Employment Security Administration P.O. Box 6028 Phoenix, AZ 85005 602-248-9396 http://www.de.state.az.us/tp/portal.asp Civil Rights Division Office of the Arizona Attorney General 1275 W. Washington St. Phoenix, AZ 85007 602-542-5263 www.attorneygeneral.state.az.us/civil_rights
Unemployment Insurance
Civil Rights Law of Arizona