Quick Facts — Employment Contract Lawyers (Arizona)

What is an Arizona Employment Contract?

An Arizona employment contract is a legally binding contract between an employer and an employee. Employment contracts can also be used by a company to hire contractors, subcontractors and freelance workers.

The purpose of an employment contract is to protect both parties throughout the working relationship. Employees are protected because the contract outlines the details of the job, scope of work, payment amount, and protects the employee from termination without just cause.

The employer is protected because most employment contracts include non-compete and non-disclosure clauses that protects the company from competition and keeps trade secrets confidential.

An employment contract allows both parties to fully understand each other’s intentions and expectations throughout the duration of the professional relationship.

Are Employment Contracts Enforceable in Arizona?

Arizona is an employment-at-will state and a right-to-work state. Both of these terms apply to different Arizona state employment laws.

  • Employment-at-will. Arizona allows either the employee or the employer to terminate employment at any time for any reason as long as the reason does not violate state statutes. The only exception to employment-at-will is an enforceable employment contract. This can sometimes include policies laid out in an employee handbook.
  • Right-to-work. Right-to-work prevents employers from forcing employees to join a union if the employer has a contract with a union. Employees in Arizona have the “right to work” without being a part of the union and paying union fees.

What Are the Legal Requirements for Arizona Employment Contracts?

Under Arizona Statutes governing labor, employment contracts are enforceable, but they must be written and signed by both the employer and the employee. Arizona employment contracts can include a variety of terms and conditions, but the terms of the agreement cannot violate state statutes or public policy.

What is Wrongful Termination?

A breach of an employment contract can occur if the employee is wrongfully terminated for reasons not in the employment contract or for reasons that are protected by state or federal laws.

Wrongful termination can include:

  • Firing an employee as an act of retaliation (for whistleblower actions or filing worker’s compensation claims, etc.)
  • Violating an employee's civil rights
  • Missing work due to jury service
  • Exercising voting rights
  • Non-membership in a labor organization
  • Military service

If an employee is fired for any of the above reasons or is fired against the terms laid out in the employment contract, they may have a claim for breach of contract due to wrongful termination and could be entitled to recoup any damages caused by the termination.

Types of Arizona Employment Contracts

Employment contracts come in many forms based on the type of work the company does or the type of employee being hired to complete the job. The three most common types of employment contracts are permanent, fixed term, and consultant agreements.

  • Permanent. This is the most common type of employment contract and is used by a company to hire a permanent employee. The employee will have regular hours and be paid an hourly rate or salary. These contracts do not have an end-date and employees benefit from a wide range of labor rights under Arizona state law.
  • Fixed term. These contracts are used for workers who will only work for a specific period of time or to complete a specific job. At the end of the contract, employees are either brought into permanent employment or a new contract with a new term is executed.
  • Consultant agreement. If a company hires a contractor or a freelance worker, they will most likely execute a consulting agreement employment contract. This contract lays out the terms of the working relationship between the two parties and should expressly state that the worker is not an employee of the company, but an independent contractor.

Frequently Asked Questions

How do I hire a lawyer to draft an employment contract in Arizona?
How much does it cost to hire a lawyer to review an employment contract in Arizona?

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Elizabeth A. on ContractsCounsel
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Elizabeth A.

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Phoenix, Arizona
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I represent business and consumer clients to help them address the range of legal issues that concern them including business contractual disputes, debt litigation, and related matters.

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Holly W.

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Tucson, AZ
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I am a solo legal practitioner in Tucson, Arizona who focuses on Estate Planning, Probate, Business Formation and Mediation. I have expertise and experience in not only law but as a Registered Nurse and teacher. I use this background and knowledge to provide compassionate and individualized service for my clients.

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Connie M.

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Phoenix, AZ, United States
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Copyright, trademark, and intellectual property contracts and licenses. General Business contracts. Practical and comprehensive advice and contract drafting in an efficient, no-nonsense manner. She routinely represents clients needing copyright, trademark, and intellectual property contracts and licenses in the book publishing industry, music publishing, and all aspects of art and entertainment. She has represented both sides of the table - creators and authors and corporations and businesses. After 40 years of experience she has seen most business models and structures and has worked with many general contracts in different industries.

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Darren W.

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My main focus is estate planning and business transactions, but I have had many practice areas throughout my career, including criminal defense and prosecution, civil litigation from neighborhood squabbles to corporate contentions. I have also worked in bankruptcy, family law, collections, employment law, and personal injury. I stand ready to assist in any area to which I feel I can be of service, but will not try to fake it if I do not know the area of law I am being asked to serve in.

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Brian S.

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Arizona, United States
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I am a corporate lawyer with over 15 years of experience in litigation and in advising companies on a variety of legal issues, including mergers and acquisitions, securities regulations, and contract negotiations. I have a deep understanding of the technology industry and have represented numerous tech companies in my career.

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I am a business, Internet, and intellectual property lawyer. My practice is split between both transactional work and litigation. Prior to law school, I earned a master’s degree in computer science, which gives me the background and experience to understand technology, software, and the Internet better than most attorneys, and so my practice focuses on these areas. However, I represent clients in almost any industry, including real estate, construction, medicine, service, and consumer products.

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Employment

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Washington

Asked on Jul 15, 2025

Can my employer change the terms of my employment contract without my consent?

I have been working for a company for the past three years, and my employment contract clearly outlines my job responsibilities, salary, and benefits. However, recently my employer informed me that they are planning to make changes to my contract, including reducing my salary and removing certain benefits. I am concerned about the legality of these changes and whether my employer can modify the terms of my contract without my consent.

Merry K.

Answered Jul 22, 2025

I'm sorry to hear about this proposed change. Whether or not your employer can make such changes unilaterally depends almost entirely on how your contract is written. For example, if your contract clearly states that you are an "at will" employee, your employer can not only make whatever changes it wants, but can also discipline you or terminate you with no reason at all and only a one second advance notice. If it's not an "at will" contract, there may be a paragraph or two that addresses amendments to the agreement - eg, some such contracts may say that an employer can make changes with two weeks advance written notice; another may say that changes will be negotiated in advance between employer and employee. You may want to have an employment attorney, such as myself, review your contract as well as any recent correspondence you may have received from your employer. You may also want to try to very quietly try to find out whether or not other employees are possibly in the same boat as you - it's possible that the employer is cutting back on some benefits to save money, rather than laying off or terminating some or all of their employees. Good luck to you - and if you'd like to reach out to me, you can find me through ContractsCounsel.com or on WSBA.org Please be aware that the above information is provided for educational purposes only, and no attorney/client relationship has been formed Merry A. Kogut WSBA #16153

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Contracts

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Ohio

Asked on Apr 13, 2023

What's personal leave in an employment contract?

I have recently been offered a job, and the employment contract I have been provided with states that I am entitled to personal leave. I am not sure what this is, or what it entitles me to. I would like to know what rights and responsibilities I have regarding personal leave, and what the employer's expectations are of me with regards to this leave.

Jeffrey K.

Answered Apr 14, 2023

Personal leave sometimes replaces vacation and sick time. Some employers just give employees time off for whatever reason the employee chooses. To know more about the rights and responsibilities, you should speak to HR at your new employer who will help you with the employer's expectations and your rights under the leave provision in your contract. Also, look at your contract as it may provide insight as to how to implement the leave. When in doubt, speak to HR. Thanks.

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Litigation

Employment Contract

Texas

Asked on Apr 23, 2023

What's the termination clause in an employment contract?

I recently accepted a position at a company and they have given me an employment contract to review. I have been reading through the contract and noticed a section regarding termination. However, I am not sure what the termination clause in the contract states and I am hoping to get some clarification from a lawyer. I want to make sure that I understand my rights and obligations before signing the contract.

Curt L.

Answered Apr 28, 2023

Most employment contracts contain (1) termination for cause, and/or (2) termination without cause (also known as at-will employment relationship).

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Employment

Employment Contract

Georgia

Asked on Apr 12, 2025

Can a company withhold a performance bonus if I leave before the payout date?

I recently resigned from my job, and in my employment contract, there was a provision for a performance bonus to be paid out at the end of the year. However, the payout date is a few months away, and I am concerned that the company may try to withhold the bonus since I am no longer employed with them. I want to know if they have the legal right to do so, or if I am still entitled to receive the bonus based on my performance during my time of employment.

Jerome L.

Answered Apr 15, 2025

This is a great—and very common—question. Whether the company can legally withhold your performance bonus after resignation depends heavily on how your employment agreement is written and how the bonus is classified. Key Factors to Consider: 1. Is the Bonus Discretionary or Earned? If your contract defines the bonus as discretionary, the employer generally has the right to decide whether to pay it and can condition it on continued employment. If the bonus is based on meeting specific performance goals or metrics, and those have been satisfied, it may be considered earned—even if the payment date is in the future. 2. Does the Contract Require You to Be Employed on the Payout Date? Many agreements include language stating the employee must be actively employed on the bonus payout date. If such a clause exists, the company may be within its rights to withhold the bonus, even if the performance was completed. 3. What Is the Bonus Period? If your bonus was based on a performance period that has already ended (such as a calendar or fiscal year), and you met your goals, you may have a stronger case for claiming the bonus as earned compensation. Georgia-Specific Note: In Georgia, employment is at-will, and courts generally uphold the terms of a written employment agreement. However, Georgia courts have also recognized that earned wages (which can include bonuses if not discretionary) must be paid. If the bonus is performance-based and the company has paid similar bonuses under the same conditions in the past, you may have grounds to assert that the payment is owed. What You Can Do: Review your employment agreement and any bonus policy documents closely. Look for phrases like “discretionary,” “earned,” and “must be employed on the payout date.” If the language is unclear, you may want to consult an attorney to evaluate whether the company is legally permitted to withhold the bonus—or if you may have a claim based on how the bonus was structured and earned. If you would like help reviewing your agreement, I’d be happy to assist.

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Employment

Employment Contract

Florida

Asked on Apr 19, 2023

What's probationary period in an employment contract?

I am a recent college graduate who recently accepted a job offer from a company. As part of the offer, I was asked to sign an employment contract. I understand that the contract includes a probationary period, but I'm not sure what that entails. I would like to know what the probationary period is and what it means for me as an employee.

Diane D.

Answered May 10, 2023

A period of time to evaluate you and to show that you're a good fit for the job and that you are fully qualified for it. At the end of the probationary period, they will either keep you on or terminate you.

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