🇺🇸 Arizona UNEMPLOYMENT — 2026 UPDATE

Arizona Unemployment Benefits 2026

⚠️Informational only — not legal or tax advice.

Last Updated: January 27, 2026
Last Reviewed: January 27, 2026
Applicable Period: 2026
Jurisdiction: State of Arizona, United States
Update Schedule: Quarterly reviews in 2026; annual reviews thereafter

Unemployment Arizona benefits 2026

Table of Contents

Introduction

Unemployment benefits in Arizona provide temporary income replacement for eligible workers who lose employment through no fault of their own. The program is administered by the Arizona Department of Economic Security and funded through employer taxes under state and federal law.

Program authority: Arizona Revised Statutes Title 23, Chapter 4
Administering agency: Arizona Department of Economic Security (DES)
Official website: https://des.az.gov/services/employment/unemployment-individual

This guide provides comprehensive information on Arizona unemployment benefits for 2026, including eligibility requirements, benefit amounts, filing procedures, weekly certification requirements, and appeal processes. All information is compiled from official government sources.

Sources: Arizona Revised Statutes, Arizona Department of Economic Security official guidance, U.S. Department of Labor

Arizona Unemployment Benefits – 2026 Quick Reference
Category 2026 Information Official Source
Maximum Weekly Benefit $320 A.R.S. § 23-779
Minimum Weekly Benefit $229 A.R.S. § 23-779
Standard Duration Up to 26 weeks (variable based on unemployment rate) A.R.S. § 23-780
Waiting Week Required Yes A.R.S. § 23-771
Filing Portal CACTUS Portal https://www.azui.com
Certification Frequency Weekly A.R.S. § 23-772
Work Search Required 4 contacts per week on 4 different days A.R.S. § 23-771
Appeal Deadline 15 days from mailing date DES Appeals Process
Payment Methods Electronic Payment Card, direct deposit DES Payment Information
Tax Withholding Available Federal: Yes (10%) / State: Arizona has no state income tax IRS guidelines

ℹ️ Key Unemployment Insurance Terms

Common terms used throughout this guide:

Claimant - Individual filing for unemployment benefits

Base Period - First 4 of the last 5 completed calendar quarters before filing claim

Benefit Year - 52-week period beginning when claim is filed

Weekly Benefit Amount (WBA) - Amount payable each week if eligible

Maximum Benefit Amount (MBA) - Total benefits available during benefit year

Monetary Determination - Decision on benefit amounts based on wage history (Form UB-107)

Non-Monetary Determination - Decision on eligibility based on separation reason and ongoing requirements

Adjudication - Investigation and decision-making process for eligibility issues

Suitable Work - Employment appropriate for claimant's skills, experience, and labor market

Overpayment - Benefits paid that claimant was not entitled to receive

Waiting Week - First week of unemployment for which benefits are not paid

Source: Arizona Department of Economic Security terminology guide

Overview of Unemployment Benefits in Arizona

Program Purpose

Unemployment insurance in Arizona provides temporary income replacement for workers who become unemployed through no fault of their own. The program operates as a federal-state partnership, with Arizona administering benefits according to state law while meeting federal requirements.

Legal framework:

  • State law: Arizona Employment Security Law, Arizona Revised Statutes Title 23, Chapter 4
  • Federal law: Federal Unemployment Tax Act (FUTA), 26 U.S.C. § 3301
  • Funding: Employer payroll taxes (no employee contribution required)

Source: A.R.S. Title 23, Chapter 4; FUTA at https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section3301

Administering Agency

Arizona Department of Economic Security (DES)

Arizona’s unemployment insurance program is administered by the Arizona Department of Economic Security.

Contact information:

Source: Arizona DES official website

Who Is Eligible for Unemployment Benefits in Arizona

Employment Status Requirements

To qualify for unemployment benefits in Arizona, individuals must have worked in covered employment during the base period.

Covered employment definition:

According to Arizona Revised Statutes § 23-615, covered employment includes most services performed for wages under any contract of hire, written or oral, express or implied.

Covered employment generally includes most private sector jobs, government positions, and nonprofit organizations meeting employee count requirements.

Excluded categories:

  • Independent contractors (unless misclassified)
  • Self-employed individuals
  • Certain agricultural workers earning below specified thresholds
  • Domestic workers in private homes earning below minimum requirements
  • Elected officials
  • Students working for educational institutions while enrolled

Source: A.R.S. § 23-615 (employment definitions) and § 23-613 (exclusions)
Official text: https://www.azleg.gov/arsDetail/?title=23

Earnings and Work History Requirements

Base Period Definition:

The base period in Arizona is the first four of the last five completed calendar quarters before filing the claim.

Example: Claim filed in January 2026

  • Base period: October 2024 – September 2025
  • Alternative base period (if standard fails): January 2025 – December 2025

Source: A.R.S. § 23-609

Minimum Monetary Requirements:

To qualify monetarily for benefits in Arizona, claimants must meet the following wage requirements:

  1. High quarter wages: Minimum of 390 times the Arizona minimum wage in the highest earning quarter ($5,655 in 2026, based on Arizona minimum wage of $14.50)
  2. Total base period wages: Combined wages in the other three quarters must equal at least one-half of the high quarter wages

Alternative base period:

Arizona does not currently allow use of an alternative base period for regular unemployment insurance claims.

Source: A.R.S. § 23-771 – Eligibility Requirements
Benefit information: https://des.az.gov/services/employment/unemployment-individual/eligibility-unemployment-insurance-benefits

Separation From Employment Requirements

Qualifying vs Disqualifying Separations:

Qualifying separations (eligible for benefits):

The following types of job separation qualify for unemployment benefits in Arizona:

  • Layoff due to lack of work
  • Business closure or downsizing
  • Position elimination
  • Reduction in hours
  • Temporary layoff with indefinite recall
  • Discharge not due to misconduct

Disqualifying separations:

According to Arizona Revised Statutes § 23-775 and § 23-776, benefits are denied if unemployment results from:

  1. Voluntary quit without good cause Definition: Leaving employment voluntarily without work-related reason considered “good cause” under Arizona law. Disqualification period: Duration of unemployment until claimant becomes reemployed and earns eight times the weekly benefit amount
  2. Discharge for misconduct Definition: According to A.R.S. § 23-619, misconduct means “any act or omission by an employee which constitutes a material or substantial breach of the employee’s duties or obligations pursuant to the employment or contract of employment or which adversely affects a material or substantial interest of the employer.” Disqualification period: Duration of unemployment until claimant becomes reemployed and earns eight times the weekly benefit amount
  3. Refusal of suitable work Definition: Declining job offer meeting definition of “suitable work” without good cause. Disqualification period: Duration of unemployment until requalification requirements met
  4. Labor dispute participation Definition: Active participation in strike, lockout, or labor dispute at the workplace. Disqualification period: Duration of the labor dispute

Good cause exceptions:

Arizona recognizes the following circumstances as “good cause” for voluntary separation:

  • Domestic violence situations requiring relocation
  • Military spouse relocation due to permanent change of station
  • Unsafe or unlawful working conditions
  • Significant change in working conditions or location making continued employment unreasonable
  • Employer’s violation of legal obligations
  • Medical reasons documented by healthcare provider

Source: A.R.S. § 23-775 (disqualifications), § 23-776 (suitable work), § 23-777 (labor disputes), § 23-619 (misconduct definition)
Official text: https://www.azleg.gov/arsDetail/?title=23

Who Is Not Eligible for Unemployment Benefits in Arizona

The following categories of workers are generally not covered by Arizona’s unemployment insurance program:

Categorical exclusions:

  1. Self-employed individuals Individuals working for themselves are not covered under regular unemployment insurance.
  2. Independent contractors Workers classified as independent contractors rather than employees are not covered. Note: Misclassified workers may challenge their classification and potentially qualify.
  3. Certain students Students employed by educational institutions while enrolled and regularly attending classes are excluded.
  4. Federal civilian employees Covered under Unemployment Compensation for Federal Employees (UCFE) program, not state UI. UCFE information: https://www.dol.gov/agencies/eta/unemployment-insurance
  5. Military personnel Covered under Unemployment Compensation for Ex-Servicemembers (UCX) program. UCX information: https://www.dol.gov/agencies/eta/unemployment-insurance
  6. Elected officials Services performed in elective public office are excluded.
  7. Insurance sales agents Licensed insurance agents paid solely on commission may be excluded depending on contract structure.
  8. Real estate agents and brokers Licensed real estate professionals paid solely on commission may be excluded.

Source: A.R.S. § 23-613 (excluded services), § 23-615 (covered employment definitions)
Federal programs: 5 U.S.C. § 8501 (UCFE); 5 U.S.C. § 8521 (UCX)

How Unemployment Benefit Amounts Are Calculated in Arizona

Weekly Benefit Amount (WBA)

Calculation formula:

Arizona calculates the weekly benefit amount using the following formula:

WBA = 4% of the wages paid in the highest quarter of the base period

For 2026:

  • Minimum WBA: $229
  • Maximum WBA: $320
  • Average WBA: $275 (2025 data)

Example calculation:

If a claimant earned $20,000 in their highest quarter:

  • WBA = $20,000 × 0.04 = $800
  • Since $800 exceeds the maximum of $320, the claimant receives $320 per week

If a claimant earned $6,000 in their highest quarter:

  • WBA = $6,000 × 0.04 = $240
  • The claimant receives $240 per week

Partial unemployment:

Claimants working part-time may receive reduced benefits. Arizona allows earnings up to the weekly benefit amount without reduction. If earnings exceed the weekly benefit amount, no benefits are payable for that week.

Source: A.R.S. § 23-779 (benefit calculation)
Official calculator: https://des.az.gov/services/employment/unemployment-individual/eligibility-unemployment-insurance-benefits (estimate only, not official determination)

Maximum Benefit Amount and Duration

Maximum benefit amount (MBA):

The maximum benefit amount is the total benefits available during the benefit year, calculated as:

MBA = Weekly Benefit Amount × Maximum weeks available

Standard benefit duration: Up to 26 weeks, but the actual number varies based on Arizona’s seasonally adjusted unemployment rate

Duration determination:

According to Senate Bill 1828 enacted in 2021, the number of weeks of benefits available depends on Arizona’s seasonally adjusted unemployment rate:

  • If unemployment rate is below 5%: Reduced duration based on formula
  • If unemployment rate is 5% or higher: Full 26 weeks available

Maximum total benefits (2026): Up to $8,320 (based on maximum WBA of $320 × 26 weeks, if full duration available)

Benefit year:

Benefits are payable within a 52-week benefit year beginning the Sunday of the week the claim is filed.

Extended Benefits (EB) program:

Additional weeks of benefits may be available when Arizona’s unemployment rate triggers the federal-state Extended Benefits program. EB provides up to 13 additional weeks when triggered.

Current EB status: Inactive as of January 2026
Status verification: https://des.az.gov/content/ui-benefit-claims-extended-benefits

Source: A.R.S. § 23-780 (duration); Extended Unemployment Compensation Act § 202 (EB)
EB status: Arizona DES website, verified January 27, 2026

Dependents Allowance

Arizona does not provide dependent allowances for unemployment benefits.

Source: Arizona Revised Statutes Title 23, Chapter 4 reviewed; no dependent allowance provisions found

Unemployment Benefit Payment Schedule in Arizona

Payment Process and Timeline
Phase Timeframe Details
Weekly Certification Window Sunday through Saturday for previous week File certification for previous week; available online 24/7
Processing Time 2–3 business days Time for DES to process certification and verify eligibility
Payment Authorization 1–2 business days after processing Payment approved and sent to payment method
Electronic Payment Card (EPC) 1–2 business days Funds loaded to unemployment debit card (Way2Go Card)
Direct Deposit 2–3 business days Funds available in bank account
Total Timeline 2–4 weeks from filing Typical time from initial claim to first payment (includes processing and waiting week)

Waiting week impact:

Arizona requires a one-week waiting period. The first week of unemployment is not compensable, meaning the first payment received is for the second week of unemployment.

Source: A.R.S. § 23-771 (waiting week); Arizona DES payment timeline information
Payment schedule page: https://des.az.gov/services/employment/unemployment-individual/unemployment-benefit/receiving-ui-benefits-faq

How to File an Unemployment Claim in Arizona

Online Filing (Primary Method)

Filing portal: CACTUS (Claimant’s Automated Claims and Tax Unemployment System)
URL: https://www.azui.com
Availability: 24/7

Step-by-step filing process:

  1. Create account – Register on CACTUS portal with email address and create password
  2. Verify identity – Provide Social Security number, driver’s license or state ID, and answer identity verification questions
  3. Enter personal information – Name, address, contact information, citizenship status
  4. Provide employment history – List all employers during past 18 months with:
    • Employer name, address, and phone number
    • Employment dates (start and end dates)
    • Reason for separation
    • Last day worked
    • Wages earned
  5. Answer eligibility questions – Questions about availability, work search capability, and potential disqualifying issues
  6. Submit claim – Review all information and submit application

Required information:

  • Social Security number
  • Driver’s license or Arizona state ID number
  • Complete employment history (last 18 months)
  • Bank account information for direct deposit (optional)
  • Alien registration number (if not U.S. citizen)
  • DD Form 214 (if former military)
  • SF-8 or SF-50 (if former federal civilian employee)

Processing: Claims are typically processed within 7-10 business days. Claimants receive monetary determination (Form UB-107) showing wage information and benefit amounts.

Source: Arizona DES filing instructions
Official guide: https://des.az.gov/services/employment/unemployment-individual/apply-ui-benefits

Phone Filing

Arizona requires all initial unemployment claims to be filed online through the CACTUS portal. Phone service is available only for questions and assistance with the online filing process, not for claim filing.

UI Call Center: 1-877-600-2722
TTY: 1-800-842-4833
Hours: Monday-Friday, 8:00 AM – 4:30 PM (Arizona Time)

Source: Arizona DES contact information
Verified: January 27, 2026

Alternative Filing Methods

Mail filing:

For individuals unable to file online, paper applications are available:

  • Arizona Initial Claim for Unemployment Insurance (English)
  • Arizona Initial Claim for Unemployment Insurance (Spanish)

Download forms from: https://des.az.gov/services/employment/unemployment-individual/apply-ui-benefits

In-person assistance:

ARIZONA@WORK offices provide computer access and assistance for filing claims at no cost.

Find locations: https://arizonaatwork.com

Required Documents and Information for Filing

Personal identification:

  • Social Security number or Social Security card
  • Driver’s license or Arizona state-issued ID
  • Date of birth
  • Contact information (phone, email, mailing address)
  • Citizenship or work authorization status

Employment documentation:

  • Last employer information (name, address, phone, dates of employment)
  • Reason for separation from each employer
  • Separation notice if available (layoff letter, termination notice, furlough notice)
  • All employers worked for in last 18 months
  • Dates of employment for each employer
  • Gross wages earned from each employer

Banking information (for direct deposit – optional):

  • Bank routing number (9 digits)
  • Account number
  • Account type (checking or savings)

Additional documentation (if applicable):

  • Work authorization documents (non-U.S. citizens: alien registration number, work permit)
  • DD Form 214 – Member 4 copy (military service members)
  • SF-8 or SF-50 (federal civilian employees)
  • Union membership documentation (union name and local number)

Most documents can be uploaded through the CACTUS online portal after filing the initial claim.

Source: Arizona DES filing requirements
Document checklist: https://des.az.gov/services/employment/unemployment-individual/apply-ui-benefits

Weekly Certification and Ongoing Eligibility Requirements

Certification Process

Certification frequency: Weekly
Filing window: Sunday through Saturday for the previous week
Method: Online through CACTUS portal at https://www.azui.com (phone available for assistance only)

Each weekly certification requires answering questions about the previous week:

  • Were you able and available to work all week?
  • Did you look for work?
  • How many work search activities did you complete?
  • Did you refuse any job offers?
  • Did you work or earn any money?
  • Were you attending school or training?
  • Were you physically able to work?

Late filing:

Certifications must be filed weekly. Missing more than two consecutive weekly certifications causes the claim to become inactive, requiring contact with DES to reactivate.

Source: A.R.S. § 23-772 (continuing claim requirements)
Certification instructions: https://des.az.gov/services/employment/unemployment-individual

Work Search Requirements

Required work search activities:

According to Arizona Revised Statutes § 23-771, claimants must actively search for work and complete qualifying work search activities.

Specific requirements:

  • Engage in systematic and sustained effort to obtain work during at least 4 days of the week
  • Make at least 4 work search contacts on 4 different days of the week

Qualifying activities:

  1. Submitting job application to potential employer
  2. Attending job interview
  3. Attending job fair or hiring event (online or in-person)
  4. Registering with employment agency or staffing service
  5. Contacting union hiring hall (if union member)
  6. Creating or updating resume on job search websites
  7. Creating personal profile on professional networking sites (LinkedIn, etc.)
  8. Attending employment skills workshops or job clubs
  9. Participating in ARIZONA@WORK services
  10. Taking civil service examinations
  11. Researching potential employers and labor market information

Documentation required:

For each work search activity, record:

  • Date of activity
  • Employer or organization name and address
  • Contact person name (if applicable)
  • Contact method (online, phone, in-person, email)
  • Type of activity performed
  • Position applied for or discussed
  • Result or outcome

Work search activities must be entered into the weekly certification system when filing each weekly claim.

Audit process:

Arizona DES conducts random audits of work search activities. Claimants must provide documentation upon request. Failure to adequately document work search may result in benefit denial for affected weeks.

Work search exemptions:

The following claimants are exempt from work search requirements:

  1. Temporary layoff with definite recall date Criteria: Employer has provided written notice of recall within 8 weeks, and claimant maintains contact with employer Verification: Recall notice or letter from employer required
  2. Union hiring hall dispatch Criteria: Claimant is union member receiving job referrals through union hiring hall Verification: Union membership documentation and hiring hall registration required
  3. Approved training program Criteria: Enrolled in DES-approved training program including:
    • Trade Adjustment Assistance (TAA) training
    • Workforce Innovation and Opportunity Act (WIOA) programs
    • Vocational rehabilitation programs sponsored by DES or other public agencies
    Verification: Training program approval from DES required
  4. Shared Work program participants Criteria: Participating in approved Shared Work plan with reduced hours Verification: Employer’s approved Shared Work plan

Each exemption requires verification and approval by Arizona DES. Exemptions do not eliminate the requirement to be available for and able to accept suitable work.

Source: A.R.S. § 23-771 (work search requirements); Arizona Administrative Code R6-3-52235 through R6-3-52510
Work search guide: https://des.az.gov/work-search
Exemption information: https://des.az.gov/services/employment/unemployment-individual/able-and-available-work

What Happens After Filing a Claim

Claim processing steps:

  1. Initial claim received – Arizona DES receives application through CACTUS portal
  2. Employer notification – Notice to Employer (Form UB-110) mailed to most recent employer within 2 business days requesting verification of separation information. Employer has 10 working days to respond.
  3. Monetary determination issued – Wage Statement (Form UB-107) showing base period wages, weekly benefit amount (WBA), maximum benefit amount (MBA), and benefit year dates. Issued within 7-10 business days if all wage information available.
  4. Non-monetary determination (if needed) – Investigation of eligibility issues if separation circumstances require adjudication. Timeline varies based on complexity.
  5. First payment – If approved with no issues, payment issued for first compensable week after waiting week is served (typically 2-4 weeks from filing)

Monetary determination (Form UB-107):

Document showing:

  • Base period quarters and calendar dates
  • Wages reported by each employer in base period
  • Weekly benefit amount (WBA)
  • Maximum benefit amount (MBA)
  • Number of weeks potentially payable
  • Benefit year beginning and ending dates

Non-monetary determination:

Issued when eligibility questions exist regarding:

  • Reason for separation from employment
  • Availability for work
  • Ability to work
  • Refusal of suitable work
  • Work search compliance
  • Other disqualifying issues

Investigation process:

  • Fact-finding interview scheduled (typically by phone)
  • Employer and claimant provide information and documentation
  • Evidence submitted and reviewed
  • Written determination issued with findings and appeal rights

Typical timeline:

  • Monetary determination: 7-10 days after filing
  • Non-monetary determination: 14-21 days if needed (varies by case complexity)
  • First payment: 2-4 weeks if no eligibility issues

Automatic registration:

Claimants are automatically registered with Arizona Job Connection (AJC), Arizona’s largest job search database, within 2 days of submitting application. The system allows claimants to complete their AJC profile, create digital resume, and search for job opportunities.

Arizona Job Connection: https://www.azjobconnection.gov

Source: Arizona DES claims processing information
Processing timeline: https://des.az.gov/services/employment/unemployment-individual/apply-ui-benefits

Reasons an Unemployment Claim May Be Denied

Monetary denial:

Claims denied for insufficient wages must meet minimum earnings thresholds:

  • High quarter wages below 390 times Arizona minimum wage ($5,655 in 2026)
  • Total wages in other three quarters less than half of high quarter wages
  • Insufficient base period employment
  • Wages reported under incorrect Social Security number

Non-monetary denial (disqualifications):

  1. Voluntary quit without good cause Disqualification: Until reemployed and earns eight times weekly benefit amount
  2. Discharge for misconduct Disqualification: Until reemployed and earns eight times weekly benefit amount
  3. Refusal of suitable work Disqualification: Until reemployment and requalification requirements met
  4. Failure to meet availability requirements Disqualification: Until requirements met and documented
  5. Work search non-compliance Disqualification: Week(s) of non-compliance; benefits denied for affected weeks
  6. Labor dispute participation Disqualification: Duration of labor dispute
  7. False statements or fraud Disqualification: Permanent disqualification until overpayment, penalties, and interest fully repaid

Administrative denial:

  • Incomplete application
  • Failure to provide required documentation within specified timeframes
  • Missed fact-finding interview without good cause
  • Identity verification failure
  • Non-response to DES information requests
  • Failure to register for work services

Source: A.R.S. § 23-775 (disqualification provisions), § 23-776 (suitable work), § 23-778 (fraud)
Denial information: https://des.az.gov/services/employment/unemployment-individual/eligibility-unemployment-insurance-benefits

How to Appeal an Unemployment Decision in Arizona

Appeal Deadlines

Filing deadline: 15 days from the date of mailing of the determination

CRITICAL: Appeals must be filed within 15 days of the date the determination was mailed (shown on notice), NOT the date received.

Calculation: If determination mailed January 15, 2026, appeal deadline is January 30, 2026.

Postmark rule: Appeals mailed must be postmarked on or before the deadline. Arizona accepts hand-delivered appeals if postmarked timely and delivered within reasonable timeframe.

Late appeals: May be accepted for good cause such as:

  • Failure to receive notice due to incorrect address (if DES was not notified of address change)
  • Serious illness or hospitalization
  • Death in immediate family
  • Natural disaster or emergency
  • Postal service delays with documentation

Claimant must explain reason for late filing and provide supporting documentation.

Source: Arizona DES appeals procedures
Appeal information: https://des.az.gov/services/employment/unemployment-individual/unemployment-insurance-benefits-appeals

Appeal Filing Process

How to file appeal:

Online (CACTUS portal): https://www.azui.com – Fastest method

  • Log into CACTUS account
  • Click “Unemployment Services” icon
  • Choose “Appeals”
  • Select determination to appeal
  • Provide reason for disagreement
  • Submit electronically

Mail: Arizona Department of Economic Security
Office of Appeals
P.O. Box 6028
Phoenix, AZ 85005

Fax: Number provided on determination notice (varies by determination type)

In-person: Any DES Employment Service Office or Office of Appeals location

Required information:

  • Claimant name and Social Security number
  • Determination being appealed (include determination number and date)
  • Specific reason for disagreement with determination
  • Signature and date (for written appeals)

Appeal confirmation:

Arizona DES sends appeal acknowledgment by mail or through CACTUS portal. Confirmation includes:

  • Appeal receipt date
  • Determination being appealed
  • Next steps in appeal process

Source: Arizona DES appeals process
Official portal: https://www.azui.com

Hearing Process

Hearing notification:

Notice of Hearing mailed at least 10 days before scheduled hearing date, including:

  • Date and time of hearing
  • Hearing method (telephone/video/in-person)
  • Parties involved (claimant, employer, witnesses)
  • Issues to be decided
  • Evidence submission instructions
  • Rights and responsibilities at hearing

Hearing format:

  • Type: Primarily telephone hearings; in-person or video available in specific circumstances
  • Officer: Administrative Law Judge (ALJ)
  • Duration: 30-60 minutes typically
  • Recording: All hearings recorded for appeal purposes

Evidence submission:

  • Deadline: At least 2 business days before hearing required by DES procedures
  • Method: Upload through CACTUS portal, mail, fax, or email
  • Requirement: Provide copies to all parties
  • Accepted formats: Documents, photographs, employment records, correspondence, witness statements

Hearing procedures:

  1. ALJ explains hearing process and issues under consideration
  2. All parties and witnesses sworn in under oath
  3. Testimony taken:
    • Claimant presents case first
    • Employer presents case (if participating)
    • Witnesses questioned by ALJ and parties
  4. Evidence reviewed and discussed
  5. Both parties may question opposing witnesses
  6. Closing statements from each party
  7. Hearing concluded

Decision:

Written decision issued within 15 days after hearing, mailed to all parties. Decision includes:

  • Findings of fact based on evidence presented
  • Conclusions of law with statutory references
  • Final decision (allowed or denied)
  • Reasoning and analysis
  • Appeal rights to Appeals Board

Representation:

Claimants may represent themselves or have attorney, paralegal, or other representative. Legal representation not required but available. Arizona DES does not provide list of attorneys.

Legal assistance resources:

  • Community Legal Services: (602) 258-3434 (Maricopa County)
  • Southern Arizona Legal Aid: (520) 623-9465
  • DNA-People’s Legal Services: (928) 774-0653 (Northern Arizona)
  • ASU Law Civil Litigation Clinic: (602) 496-1717

Source: Arizona Administrative Procedures; Arizona DES hearing information
Hearing guide: https://des.az.gov/frequently-asked-questions-about-hearing-and-appeal-process

Further Appeals

Second-level appeal (Appeals Board):

Appeals of ALJ decisions may be filed with Arizona Department of Economic Security Appeals Board:

  • Deadline: 30 days from date of ALJ decision
  • Method: Written application for appeal submitted through CACTUS portal, mail, or in-person
  • Review type: Record review; typically no new hearing unless Appeals Board determines additional evidence needed
  • Decision timeline: 45-60 days typically

Appeals Board address: Arizona Department of Economic Security
Appellate Services Administration – Appeals Board
1990 W. Jefferson Street
Phoenix, AZ 85009

Judicial appeal (Court of Appeals):

Final administrative decisions may be appealed to Arizona Court of Appeals:

  • Deadline: 30 days from Appeals Board decision
  • Jurisdiction: Arizona Court of Appeals, Division One
  • Representation: Legal counsel available; not required but complex cases often involve attorney representation
  • Filing: Court of Appeals procedures apply

Source: A.R.S. § 23-674 (administrative appeals); Arizona Court of Appeals procedures
Appeals Board information: https://des.az.gov/appellate-services-administration-appeals-board

Unemployment Fraud, Penalties, and Overpayments

Fraud Definition and Examples

Fraud defined:

According to Arizona Revised Statutes § 23-787, fraud occurs when a person knowingly makes false statements, representations, or nondisclosures of material facts to obtain or increase benefit payments.

Common fraud examples:

  • Failing to report all work or earnings while certifying for benefits
  • Providing false information about job separation or termination
  • Claiming benefits while incarcerated
  • Using another person’s identity to file claims
  • Not reporting job refusals when required
  • Filing claims in multiple states simultaneously
  • Continuing to claim benefits after returning to work
  • Falsifying work search activities

Source: A.R.S. § 23-787 (fraud and overpayment), § 23-785 (false statements)

Penalties for Fraud

Administrative penalties:

Claimants found to have committed fraud must repay benefits received AND face additional penalties:

  • Repayment: 100% of fraudulently obtained benefits
  • Penalty: 15% of the fraudulent overpayment amount
  • Interest: 10% per year on unpaid balance
  • Disqualification: Ineligible for any benefits until total overpayment, penalties, and interest fully recovered or satisfied through civil judgment

Criminal penalties:

Unemployment fraud is a Class 6 Felony under Arizona law:

  • Felony classification: Class 6 Felony
  • Fines: Up to $150,000 per false statement
  • Imprisonment: Up to 2 years per false statement
  • Multiple offenses: Each fraudulent weekly certification constitutes separate offense
    • Example: 10 fraudulent weeks = up to 20 years maximum imprisonment and $1,500,000 in fines

Collection methods:

  • Offset from future unemployment benefits
  • Federal income tax refund intercept
  • Arizona state income tax refund intercept (if applicable)
  • State lottery winnings intercept
  • Wage garnishment
  • Civil judgment and collection actions

Source: A.R.S. § 23-787 (penalties and interest), § 23-785 (false statements classification)
Report fraud: 1-877-600-2722 or https://des.az.gov/services/employment/unemployment-individual/ui-benefits-compensation-fraud

Non-Fraud Overpayments

Overpayment without fraud:

Overpayments may occur without fraudulent intent due to:

  • Arizona DES processing error
  • Delayed employer information affecting eligibility
  • Determination reversed on appeal
  • Claimant error or misunderstanding made in good faith
  • Incorrect wage reporting by employers

Overpayment classifications:

  1. Administrative overpayment: Occurred without fault on claimant’s part
  2. Non-fraud overpayment: Claimant unintentionally gave incorrect or incomplete information

Repayment obligation:

Non-fraud overpayments must be repaid, but without fraud penalties. Interest at 10% per year accrues on unpaid balance. Arizona DES may waive all or portion of interest for good cause.

Waiver eligibility:

Arizona may waive non-fraud overpayments if:

  • Overpayment resulted without any fault of claimant
  • Repayment would be against equity and good conscience
  • DES error caused overpayment

Waiver application: Contact DES at 1-877-600-2722 or through CACTUS portal to request waiver consideration

Repayment options:

  • Lump sum payment (check, money order, credit/debit card)
  • Payment plan arrangements (monthly payments based on financial circumstances)
  • Offset from future unemployment benefits (25% of weekly benefit amount for non-fraud; 50% if no reasonable attempt to repay within 12 months)
  • Federal/state tax refund intercept
  • Wage garnishment (after legal judgment)

Source: A.R.S. § 23-787 (overpayment recovery and waiver provisions)
Repayment information: https://des.az.gov/services/employment/unemployment-individual/overpayments

Taxation of Unemployment Benefits in Arizona

Federal Tax Treatment

Federal taxation:

Unemployment benefits are taxable income under federal law (26 U.S.C. § 85). Claimants receive Form 1099-G by January 31 showing:

  • Box 1: Total unemployment compensation paid during calendar year
  • Box 4: Federal income tax withheld (if any)

Withholding option:

Claimants may request federal income tax withholding at 10% of weekly benefit amount through CACTUS portal or by contacting DES.

Source: IRS Publication 525; 26 U.S.C. § 85
IRS unemployment information: https://www.irs.gov/individuals/employees/unemployment-compensation

State Tax Treatment

Arizona taxation:

Arizona does not impose a state income tax. Unemployment benefits are not subject to Arizona state taxation.

Source: Arizona does not have state income tax
Confirmed: January 27, 2026

Form 1099-G

Form 1099-G distribution:

Arizona DES issues Form 1099-G by January 31 each year for previous calendar year benefits.

Access methods:

  • Mailed to address on file with DES
  • Online through CACTUS portal: Log in and access under “Tax Information”
  • By phone: Request copy through DES Call Center at 1-877-600-2722

Incorrect 1099-G:

If Form 1099-G shows incorrect amounts or benefits not received:

Source: Arizona DES tax information
Official portal: https://www.azui.com

Special Unemployment Programs in Arizona

Currently Active Programs (2026)

Extended Benefits (EB)

Program status (2026): Inactive

Extended Benefits provide additional weeks of unemployment compensation when Arizona’s unemployment rate meets federal trigger criteria.

Trigger requirements:

  • Insured Unemployment Rate (IUR) exceeds 5% AND is 120% of average for prior two years, OR
  • Total Unemployment Rate (TUR) exceeds 6.5% AND is 110% of average for prior two years

Additional weeks available: Up to 13 weeks beyond standard duration when triggered

Current status:

  • Arizona’s seasonally adjusted unemployment rate: Below 5% as of January 2026
  • EB status: Not triggered

Source: Extended Unemployment Compensation Act § 202; A.R.S. § 23-780
Federal EB information: https://oui.doleta.gov/unemploy/eb.asp
Arizona EB status: https://des.az.gov/content/ui-benefit-claims-extended-benefits
Last verified: January 27, 2026

Shared Work Program

Shared Work program status: Active

Arizona’s Shared Work program allows employers to reduce employee hours instead of layoffs, with employees receiving partial unemployment benefits to offset reduced wages.

Employer requirements:

  • Reduce normal weekly hours by at least 10% but not more than 40% for affected employees
  • Apply reduction across identifiable unit of at least 2 employees
  • Maintain health insurance and retirement benefits at same level
  • Submit written Shared Work plan to DES for approval

Employee benefits:

  • Receive partial UI benefits proportional to percentage of hours/wages reduced
  • Maintain employment relationship with employer
  • Continue health insurance and other benefits
  • No work search requirement while participating in approved plan

Program administration:

  • Approved plans valid for initial 12-month period
  • May be renewed for additional 12-month periods
  • Employer must submit weekly certifications for participating employees
  • Maximum 26 weeks of Shared Work benefits per employee per benefit year

Employer application process: Submit Shared Work plan through:

Source: A.R.S. Title 23, Chapter 4, Article 5.1 (Shared Work provisions)
Program information: https://des.az.gov/services/employment/unemployment-employer/shared-work-program

Trade Adjustment Assistance (TAA)

TAA program: Active (federal program)

Workers who lose jobs due to foreign trade impact may qualify for:

  • Extended unemployment benefits beyond regular duration
  • Job training funding (up to $10,000 or more)
  • Job search allowances
  • Relocation allowances for out-of-area employment

Eligibility:

  • Employer must be certified by U.S. Department of Labor as trade-affected
  • Separation must be result of foreign trade impact
  • Must be enrolled in approved training program (with limited exceptions)

Arizona TAA services: Provided through ARIZONA@WORK offices statewide

Arizona@Work contact: 1-877-600-2722

Source: Trade Act of 1974, 19 U.S.C. § 2271
DOL TAA information: https://www.dol.gov/agencies/eta/tradeact
Arizona services: https://arizonaatwork.com

Unemployment Compensation for Ex-Servicemembers (UCX)

UCX availability: Active (federal program)

Provides unemployment benefits to recently separated military service members based on military service.

Eligibility:

  • Recent separation from active duty military service
  • Separation must not be dishonorable discharge
  • Must meet same state eligibility requirements as civilian workers
  • Must be able, available, and actively seeking work

Filing: File through Arizona DES CACTUS portal. Provide DD Form 214 (Member 4 copy) showing:

  • Character of service
  • Separation date
  • Reason for separation

Source: 5 U.S.C. § 8521 (UCX provisions)
Filing information: https://des.az.gov/services/employment/unemployment-individual/eligibility-unemployment-insurance-benefits

Disaster Unemployment Assistance (DUA)

DUA availability: Available during federally declared major disasters

Provides benefits to individuals who lost employment due to major disaster and are not eligible for regular UI.

Activation: Only during presidentially declared major disasters affecting Arizona
Application: Through Arizona DES when disasters declared
Duration: Up to 26 weeks of assistance

Source: Robert T. Stafford Disaster Relief Act, 42 U.S.C. § 5177
FEMA DUA information: https://www.fema.gov/assistance/individual/program

Context: Arizona Compared to National Benchmarks

Arizona benefit levels in national context (2026):

  • Maximum WBA: $320 (47th of 50 states – among lowest nationally)
  • Duration: Up to 26 weeks (variable based on unemployment rate)
  • Unique features: Duration varies based on state unemployment rate; Shared Work program available

National range:

  • Highest maximum WBA: Massachusetts ($1,015)
  • Lowest maximum WBA: Mississippi ($235)
  • Most common duration: 26 weeks (most states)

Arizona’s maximum weekly benefit amount of $320 is significantly below the national average. The state’s unique variable duration system based on unemployment rate differs from most states’ fixed 26-week standard duration.

Source: U.S. Department of Labor, Comparison of State UI Laws 2026
Comprehensive comparisons: https://oui.doleta.gov/unemploy/comparison/

Resources

Arizona unemployment resources:

Arizona Department of Economic Security (DES)
Website: https://des.az.gov/services/employment/unemployment-individual
Claims Portal: https://www.azui.com
Phone: 1-877-600-2722
TTY: 1-800-842-4833
Hours: Monday-Friday, 8:00 AM – 4:30 PM Arizona Time

DES Office of Appeals
Website: https://des.az.gov/services/employment/unemployment-individual/unemployment-insurance-benefits-appeals
Phone: (602) 771-6782
Address: P.O. Box 6028, Phoenix, AZ 85005

Fraud Reporting
Phone: 1-877-600-2722
Website: https://des.az.gov/services/employment/unemployment-individual/ui-benefits-compensation-fraud

ARIZONA@WORK Services
Website: https://arizonaatwork.com
Phone: 1-833-762-8196
Job search assistance, career counseling, training programs

Arizona Job Connection
Website: https://www.azjobconnection.gov
Online job search database and labor market information

Federal unemployment resources:

U.S. Department of Labor – Employment and Training Administration
Website: https://www.dol.gov/agencies/eta/unemployment-insurance
Federal UI program oversight and information

CareerOneStop
Website: https://www.careeronestop.org
Sponsored by U.S. Department of Labor
Job search resources, training finder, career exploration

IRS – Unemployment Compensation
Website: https://www.irs.gov/individuals/employees/unemployment-compensation
Tax information for unemployment benefits

Source: Official government websites

Frequently Asked Questions: Arizona Unemployment Benefits 2026

What are unemployment benefits in Arizona?

Unemployment benefits in Arizona provide temporary income replacement for workers who lose employment through no fault of their own. The program is funded by employer taxes and administered by the Arizona Department of Economic Security. Benefits provide partial wage replacement for up to 26 weeks (duration varies based on state unemployment rate) while eligible individuals search for new employment.

How much can I receive in unemployment benefits in Arizona?

Arizona’s weekly benefit amount is calculated as 4% of wages earned in your highest quarter during the base period. The minimum weekly benefit is $229 and the maximum is $320 for 2026. Your actual amount depends on your past earnings. For example, if you earned $20,000 in your highest quarter, your calculation would be $20,000 × 0.04 = $800, but you would receive the maximum of $320 per week since that exceeds the cap.

How long does it take to get unemployment benefits in Arizona?

The typical timeline from filing to first payment is 2-4 weeks. This includes claim processing time (7-10 business days), the mandatory one-week waiting period, and payment processing. If your claim requires additional investigation or employer response, processing may take longer. Continue filing weekly certifications during this period to avoid delays.

Can I work part-time and still receive unemployment in Arizona?

Yes, you can work part-time and potentially receive partial benefits. You must report all earnings when filing your weekly certification. If your weekly earnings are less than your weekly benefit amount, you may receive reduced benefits. If your earnings equal or exceed your weekly benefit amount for the week, no benefits are payable for that week. You must still complete work search requirements even when working part-time.

What disqualifies you from unemployment in Arizona?

Common disqualifications include: voluntary quit without good cause connected to employment, discharge for misconduct, refusal of suitable work without good cause, failure to actively seek work, making false statements to obtain benefits, and participation in a labor dispute. Most disqualifications last until you become reemployed and earn at least eight times your weekly benefit amount.

How do I file for unemployment in Arizona?

File online through the CACTUS portal at https://www.azui.com (available 24/7). You need your Social Security number, driver’s license or state ID, employment history for the past 18 months including employer names and addresses, dates of employment, and reason for separation. If you cannot file online, paper applications are available for download or you can get assistance at ARIZONA@WORK offices.

Are unemployment benefits taxable in Arizona?

Unemployment benefits are subject to federal income tax but not Arizona state income tax (Arizona has no state income tax). You will receive Form 1099-G by January 31 showing the total benefits paid. You can elect to have 10% federal income tax withheld from your weekly benefits through the CACTUS portal or by contacting DES.

How do I appeal an unemployment denial in Arizona?

You have 15 days from the mailing date of the determination to file an appeal. File online through your CACTUS account (fastest method), by mail, fax, or in-person at any DES office. Include your name, Social Security number, the determination you’re appealing, and your reason for disagreement. You will receive a hearing notice with the date, time, and instructions for participating in a hearing before an Administrative Law Judge.

What is the work search requirement in Arizona?

Arizona requires you to make at least 4 work search contacts on 4 different days each week. Qualifying activities include submitting job applications, attending interviews, attending job fairs, registering with employment agencies, creating resumes, and participating in ARIZONA@WORK services. You must document each activity and enter the information when filing your weekly certification.

How is the base period calculated in Arizona?

Arizona’s base period is the first 4 of the last 5 completed calendar quarters before you file your claim. For example, if you file in January 2026, your base period would be the four quarters from October 2024 through September 2025. Only wages earned during this specific timeframe count toward determining your eligibility and benefit amount.

What is the waiting week in Arizona?

Arizona requires a one-week waiting period before benefits become payable. Your first week of unemployment is the waiting week, for which no benefits are paid. If you continue to be unemployed and meet all eligibility requirements, you will begin receiving benefits starting with your second week of unemployment. The waiting week is not retroactively payable.

Can I combine wages from multiple states?

Yes, Arizona allows wage combining. If you worked in multiple states during your base period, you can either file a claim in one state using only those wages, or file using combined wages from all states where you worked. The state where you file first determines which option you can use. Contact DES at 1-877-600-2722 for assistance with combined wage claims.

What happens if I refuse a job offer?

Refusing suitable work without good cause disqualifies you from receiving benefits until you become reemployed and earn at least eight times your weekly benefit amount. “Suitable work” considers your skills, experience, training, prior wages, commuting distance, and working conditions. Good cause for refusing work includes safety concerns, wages substantially below prevailing rate, or work requirements conflicting with religious beliefs.

Others

Legal Disclaimer: Nature of This Compilation This document is a compilation of publicly available information from official government sources. It is NOT: Legal advice An interpretation of laws or regulations A substitute for consultation with a licensed attorney A comprehensive treatment of all applicable laws Guaranteed to be complete or current