Arizona employers are required to do more than just track wages—they must also show earned sick leave details directly on employee paychecks. Under the Fair Wages and Healthy Families Act (Proposition 206), every check or paystub must clearly display sick leave balances, usage, and pay received. This requirement helps employees understand their rights and keeps businesses aligned with state law. In this guide, you’ll learn exactly what to include on paychecks, how to stay compliant, and why it matters for your payroll process in 2025.
Employers in Arizona must follow strict rules when it comes to how earned paid sick leave is displayed on employee paychecks. Under the Fair Wages and Healthy Families Act (Proposition 206), every paycheck or paystub must show specific details so workers know exactly where they stand. Missing this step can expose a business to penalties.
This guide explains what information needs to be included, why it matters, and how to set up a compliant paycheck format.
What Arizona Law Requires on Employee Paychecks
Arizona law requires that each paycheck (or electronic paystub) clearly show three things about sick leave:
- Available balance – how much earned paid sick leave the employee still has.
- Used sick leave – how many hours of sick leave have been used so far in the year.
- Pay received as sick leave – the amount paid for sick leave during the current pay period.
This applies to both hourly and salaried employees. Employers can display the information directly on the check or in an attached statement, including digital payroll systems.
Why It Matters
Providing this information is not just a formality. It ensures:
- Transparency: employees know how much leave they’ve earned and used.
- Compliance: Arizona requires employers to keep detailed records for four years.
- Trust: reduces disputes over accrual, balances, or wage calculations.
Failure to show sick leave details can lead to fines, back pay, and in some cases double damages.
Accrual, Front-Loading, and PTO Policies
Employers can meet Arizona sick leave law requirements in different ways:
| Policy Type | Annual Cap (15+ employees) | Paystub Display |
|---|---|---|
| Accrual (1 hr/30 hrs worked) | 40 hours | Show hours earned, used, balance |
| Front-loaded (all at start of year) | 40 hours | Show upfront balance, usage, remaining |
| PTO equivalent | At least same amount as law | Show PTO hours used and available |
Even if you offer paid time off (PTO) instead of separate sick leave, your paystubs must still display the PTO balance and usage in a way that satisfies the law.
Employers who also provide land or housing benefits may want to evaluate financial obligations with a land loan payment calculator to keep benefits packages aligned with payroll compliance.
Electronic Paystubs and Remote Workers
Employers may provide this information through online payroll portals or digital paystubs, as long as employees can access it easily. For remote teams, electronic delivery often simplifies compliance, but employers should ensure employees receive secure login access.
If your business also offers property-related perks or reimbursements, pairing payroll compliance with tools like a property tax calculator can help track overall costs.
Compliance Checklist for Paystubs
Here’s a quick way to confirm your payroll is set up correctly:
- Show available sick leave balance in hours.
- Show year-to-date sick leave used.
- Show pay received for sick leave this period.
- Confirm information appears on every check or electronic stub.
- Keep payroll records for at least four years.
FAQs About Arizona Sick Leave Paystub Rules
Do employers need to include sick leave info on every paycheck?
Yes. Each paycheck must show balance, usage, and pay received.
Can electronic paystubs meet the requirement?
Yes, as long as employees can view or print them easily.
Does PTO count toward Arizona’s sick leave law?
Yes, if the PTO policy is at least equal to the sick leave required under law.
What happens if an employer doesn’t include this information?
They can face penalties, fines, and may have to provide back pay plus interest.
Does this apply to salaried employees?
Yes. Employers must still track and display sick leave accrual and use.
Harry is the creator of ArizonaPaycheckCalculator.com, a trusted resource for accurate and easy-to-use payroll and tax calculators. With a focus on clarity and precision, Harry helps Arizona residents understand their take-home pay, deductions, and withholdings. Dedicated to making complex calculations simple, he combines financial knowledge with user-friendly tools to save users time and confusion.