Arizona Telecommuting laws & HR compliance analysis

Arizona Telecommuting: What you need to know

Requirements. In an effort to reduce the number of vehicles on the road, major employers in designated areas of Maricopa, Pinal, and Yavapai are required to prepare and submit a travel reduction plan for their employees to a state task force. "Major employer" is defined as an employer with 100 or more employees working at, or reporting to, a single worksite during any 24-hour period for at least 3 days per week during at least 6 months of the year (Ariz. Rev. Stat. § 49-588).
The plan must include a description of travel reduction measures to be undertaken by the employer in the coming year. Employers must provide each employee and new hire with information on alternate travel modes to reduce travel. Telecommuting, either full- or part-time, may be included as one of the measures that employers may elect to use. Employers should consult with a local attorney to learn more about whether this law applies to their business.
Registration. Ariz. Rev. Stat. § 10-1501 requires that foreign corporations must be given authority to transact business in the state and cannot do so without that authority. A local employment attorney should be consulted to determine whether a remote employee located in Arizona might be engaged in activities that could be considered transacting business in the state.
For a Limited Time receive a FREE HR Report on the "Critical HR Recordkeeping”.  This exclusive special report covers hiring records, employment relationships, termination records, litigation issues, electronic information issues, tips for better recordkeeping, and a list of legal requirements.  Download Now
The state of Arizona has been named one of the best places to work for telecommuters because of its comprehensive, agencywide Telework Arizona program for state employees. The program offers guidance, support, training, and work agreements for telecommuters and their supervisors. The state also allows employees to become "virtual workers" by working remotely on a permanent basis. Information is available at

Read more about Telecommuting