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Arizona PTO laws - vacation payout and accrual rights
What Arizona law says about paid time off payout and accrual
Arizona does not require vacation payout by law
No state law
Arizona PTO law overview
Arizona does not require PTO payout but requires employers to provide earned paid sick time under Proposition 206. Sick time must accrue at 1 hour per 30 hours worked up to 40 hours annually.
Arizona's earned paid sick time is separate from vacation PTO. While vacation PTO payout is not required, Arizona employers must allow workers to use accrued sick time and may not take it away once earned.
Governing law
Arizona PTO and vacation law is governed by Arizona Earned Paid Sick Time Act ARS 23-371 (A.R.S. § 23-371). The official authority for Arizona wage and hour enforcement including PTO disputes is the Arizona Industrial Commission.
Data source: A.R.S. § 23-371. Last verified: 2026. PTO laws can change. Consult an employment attorney for advice specific to your Arizona situation.