Arizona Earned Paid Sick Time accrual rule
Under A.R.S. § 23-372, covered employees accrue one hour of paid sick time for every 30 hours worked. Accrual begins on the first day of employment and continues throughout the accrual year.
Basic formula
Employer-size caps
The annual accrual cap depends on employer size. Employers with 15 or more employees allow up to 40 hours of paid sick leave per year. Employers with fewer than 15 employees cap accrual at 24 hours per year. A more generous policy, contract, or ordinance may allow a higher balance.
When can leave be used?
Accrued leave may first be used on the 90th calendar day of employment. Hours continue accruing during the waiting period; the balance shown here may not yet be legally available to take.
Carryover and year-end balance
Unused accrued paid sick time carries forward to the next year. The employer may cap the carry-forward at the applicable annual limit — 40 hours for employers with 15 or more employees, 24 hours for smaller employers. Employers using a compliant frontloading arrangement handle carryover under different rules.
Leave payout at separation
A.R.S. § 23-372 does not require payout of unused paid sick time at separation. Unused leave does not become wages due at termination under state law alone, though a written employer policy promising payout may create an independent obligation.
What this calculator does not determine
- Whether a particular worker or employer is covered under A.R.S. § 23-372.
- Whether a compliant frontloading arrangement is in place instead of per-hour accrual.
- Whether a specific absence qualifies as an authorized use of earned paid sick time.
- Whether a local ordinance applies additional protections beyond the state minimum.
- How fractional hours are rounded or tracked on payroll records by a specific employer.
Worked examples
Example 1: employer with 15 or more employees, 1,200 hours in a year
Example 2: employer with under 15 employees, 720 hours in a year
Sources and verification
The accrual ratio, employer-size caps, 90-day waiting period, and no-payout rule are sourced from A.R.S. § 23-372 and the Industrial Commission of Arizona Earned Paid Sick Time guidance, verified August 2026. See the site's methodology for how rules become tested calculator logic.