Arizona Holiday Vacation Policy
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FAQ
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.
An employee of an employer with 15 or more employees may carry over to the following year a maximum of 40 hours of unused earned paid sick time. An employee of an employer with fewer than 15 employees may carry over to the following year a maximum of 24 hours of unused earned paid sick time.
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.
Under the law, there should not be any carry over. Moreover, employees cannot carry over their statutory minimum vacation time. If there is carry over, the employer has failed to comply with the Employment Standards Act.
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.
If an employee has unused PTO, businesses have two options they can either cash out the employee or roll over the time to next year. Prop 206 goes into effect July 1st.
Employees must be able to carry over 40 or 24 hours of accrued leave, depending on employer size, to the following year.
