Arizona Payroll Rules

Frequency of Payments

You must designate at least two (2) days each month as fixed paydays. These days cannot be more than 16 days apart.

For regular time worked, you must pay employees within five (5) days of the end of each pay period. If the employee worked overtime or is entitled to exception pay, you must pay them overtime and exception pay within 16 days of the end of the pay period.

If you’re paying your employees by cash or check and your payroll system is centralized outside of Arizona, you must pay your employees within 10 days of the end of the pay period.

If your main location is outside of Arizona and your payroll system is centralized outside of Arizona, then you may pay FLSA-exempt employees monthly.

Manner of Payments

You may pay your employees by cash or check. If an employee has consented (in writing), then you may pay them via direct deposit.

Payment Upon Separation

If you discharge an employee for any reason, you must pay them within seven (7) days or by the next regular payday, whichever is sooner.

If an employee quits or resigns voluntarily, you must pay them by the next regular payday.

If an employee is suspended or resigns due to a labor dispute (like a strike), then you must pay them by the next regular payday.

Deductions

You may only withhold or deduct amounts from an employee’s paycheck if

• you are required or empowered to do so by state or federal law,
• the employee has consented in writing, or
• there is a reasonable good faith dispute to the amount of wages due.

You may deduct the following with written consent from the employee:

• cash shortages;
• breakage, damage, or loss of property; and
• dishonored or returned checks.

Uniforms & Other Required Equipment or Tools

Arizona does not have any laws about whether you can require an employee to purchase a uniform or equipment necessary for them to do their job.

Pre-Hire Medical, Physical, & Drug Tests

Arizona does not have any laws about whether you can require employees to pay for pre-hire medical, physical, or drug tests.

Notice of Wage Reduction

There are no laws dictating whether you have to notify an employee about a wage reduction.

Paystubs

You are only required to give an employee a paystub each pay period if you pay them via direct deposit.

Recordkeeping

For each employee, you must keep the following information for at least four (4) years:

• hours worked each day and
• wages paid each pay period.

Notices

Arizona does not require you to post payroll-related notices.