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Updated June 27, 2022

An Arizona employment contract agreement is a document used to create a legal bond between an employer and an employee. The agreement contains information on the employee’s job including duties, pay, benefits, and employment period, and also protects the employer through non-disclosure and non-compete clauses. Signing this type of document establishes a clear-cut relationship between employee and employer, ensuring that both parties remain privy to each other’s intentions and expectations. Although these contracts are more useful for employees with high-level jobs, they can be applied to any position of any job type (permanent employee, contractor, or subcontractor).

Laws ARS Title 23 (Labor)

By Type (4)


Employee Non-Disclosure Agreement (NDA) – Holds employees liable for maintaining the confidentiality of the employer’s proprietary information and trade secrets.

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Employee Non-Compete Agreement – Prohibits an employee from starting a business or aiding an existing business (during employment or upon termination) that directly competes with the employer’s company and field of business.

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Independent Contractor Agreement – Binding document between client and independent contractor for the duration of a project or task.

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Subcontractor Agreement – Binding document between contractor and subcontractor for the duration of a project or task.

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Table of Contents

What is an Employee?

“Employee” Definition ARS 23-371(F)

“Employee includes recipients of public benefits who are engaged in work activity as a condition of receiving public assistance.”

At-Will Employment

Allowed with the exception of “ Public Policy ,” “ Implied Contracts ” and “ Good-Faith ” understandings.

Income Tax Rate (Individual)

Individual Income Tax – 2.59% to 4.50% ( § 43-1011 )

Minimum Wage ($/hr)

Minimum Wage – $12.00 ( § 23-363 )

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