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If you are requesting time off covered by FMLA or CFRA, the employer cannot legally deny your request for time off. However, if you request sick time, vacation time, or PTO, the employer can legally deny your request for time off. Having your vacation time or PTO request denied can be frustrating.
Arizona does not have its own law on the books concerning holiday pay for its workers. Whether or not employers pay employees holiday pay is solely at the employer's discretion and enforcement is provided by the Industrial Commission of Arizona (ICA).
Under Arizona law, an employer generally must pay unused vacation time after an employee separates from employment if the employee has a reasonable expectation of payment. There is a reasonable expectation of payment if the employer has promised to pay for unused vacation time.
Use-It-or-Lose-It Policy The Arizona Attorney General has recognized that employers may lawfully implement a use-it-or-lose-it leave policy requiring employees to use vacation by a set date or lose it, so long as employees have a reasonable opportunity to use the leave. AZ Atty. General Op. I80-120.
Neither Arizona's Legislature nor its courts have given any significant guidance regarding an employer's ability to deny or restrict the payment of accrued vacation upon separation from employment. Employers in Arizona are not required to offer vacation time or PTO to their employees.
Arizona employment laws don't require employers to pay out unused vacation time, but they do hold employers accountable for any company policies that relate to the final paycheck.
Vacation Leave In Arizona, an employer is not required to provide its employees with vacation benefits, either paid or unpaid.
Arizona employers are not required to offer paid holiday or paid vacation time. Employers that do offer these discretionary benefits, may do so on a use-it-or-lose-it basis.
Employers in the State of Arizona are not required to offer vacation time or PTO, but ARE REQUIRED to provide Paid Sick Leave (PSL) pursuant to the Healthy Families and Fair Wages Act.