AZ SB1437

Employers with 50+ full-time employees (or 50+ employees working 1,500+ hours per week combined) must notify Arizona's Department of Economic Security at least 120 days before relocating a call center to another state or foreign country.

Employers violating the notification requirement face civil penalties up to $10,000 per day, with the Industrial Commission of Arizona able to reduce penalties for just cause.

Employers appearing on the Department of Economic Security's semiannual relocation list become ineligible for state grants and guaranteed loans for five years and must repay the unamortized value of previous grants, tax benefits, and subsidies received.

The Arizona Commerce Authority may waive ineligibility or repayment requirements if an employer demonstrates that losing assistance would cause substantial job loss, environmental harm, or significant economic impact to the state.

All state agencies must ensure call center and customer service work is performed entirely within Arizona by state contractors, with compliance required by November 1, 2025 (new hires must be in-state beginning November 1, 2024).