Back to Questions
employmentAZ

What is wrongful termination in Arizona?

Federal & State Law Editorial TeamLast reviewed: 2026-05-02

Arizona's at-will employment doctrine is largely codified in the Employment Protection Act, which both recognizes and confines public policy claims.

1. Arizona Employment Protection Act — A.R.S. § 23-1501

Enacted 1996 in response to court decisions expanding common-law protections. The AEPA:

  • Reaffirms at-will employment as the default.
  • Limits wrongful discharge claims to those based on a written employment contract OR a violation of an Arizona statute.
  • Specifically lists protected statutory categories: refusing to violate the Arizona Constitution or statute, exercising rights under the Arizona Constitution or statute, refusing to engage in unlawful discrimination, jury duty, military service, refusing fingerprinting clearance card actions.
  • The AEPA effectively abolished the common-law public policy tort for non-statutory bases. Galati v. America West Airlines, 205 Ariz. 290 (App. 2003).

    2. Arizona Civil Rights Act — A.R.S. § 41-1463

    Prohibits discrimination based on race, color, religion, sex (including pregnancy/childbirth), age (40+), disability, national origin, or genetic testing information. Applies to employers with 15+ employees (1+ for sexual harassment after 2017 amendments).

    File charge with Arizona Civil Rights Division within 180 days (or EEOC within 300). 1-year SOL after right-to-sue letter.

    3. Arizona Employment Retaliation

  • Arizona Whistleblower Statute (A.R.S. § 23-1501(A)(3)(c)): incorporated into AEPA — protects reports of statutory violations.
  • Workers' Comp Retaliation — A.R.S. § 23-1501(A)(3)(c)(ii): protected.
  • 4. Fair Wages and Healthy Families Act — A.R.S. § 23-364

    Includes anti-retaliation provisions for asserting wage rights.

    5. WARN Act

    Federal WARN applies; no state WARN.

    6. No Implied Contract from Handbook (by Statute)

    A.R.S. § 23-1501(A)(2) provides that handbook policies do not modify at-will status unless the employer expressly states an intent to be bound.

    7. Damages

    Under the AEPA, plaintiffs may recover lost wages and benefits but punitive damages are limited.

    8. Statute of Limitations

  • AEPA wrongful termination: 1 year (A.R.S. § 12-541) — very short.
  • ACRA: 180 days to ACRD/EEOC; 1 year after right-to-sue.
  • Workers' comp retaliation: 1 year.
  • This is legal information, not legal advice.

    When to Talk to a Lawyer
    • You face Arizona's tight 1-year AEPA deadline
    • You're trying to fit a non-statutory public policy theory into the AEPA framework
    • Your claim involves federal violations rather than Arizona statutes
    Related Statutes & Laws
    • A.R.S. § 23-1501
    • A.R.S. § 41-1463
    • A.R.S. § 23-364
    • A.R.S. § 12-541

    This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.