SB 1036 Arizona Senate · 57th Legislature - Second Regular Session

unemployment benefits; requirements; disqualifications; determinations

SB 1036 revises Arizona's unemployment benefit rules to clarify disqualification standards for job seekers who refuse suitable work or fail to actively seek employment. It defines "suitable work" as positions paying at least the minimum wage and exceeding the individual's weekly benefit amount, with exceptions for unlisted job offers. The bill also updates requirements for "shared work" programs, mandating employers to submit detailed plans showing how reduced hours prevent layoffs and maintain fringe benefits like health insurance for affected workers. These changes directly impact unemployment claimants and employers participating in shared work arrangements.
Bill status vetoed 4 of 5 stages cleared
Introduction
Dec 2025
Committee Review
Senate Passage
Feb 2026
House Passage
Feb 2026
Vetoed
Feb 2026
Introduced Dec 19, 2025 Vetoed Feb 20, 2026
Maddy AI version diff · 1 comparison

What changed between versions

Introduced Version Senate Engrossed Version (02/16/2026) · 6 edits · Feb 16, 2026
MODERATE
This bill updates Arizona's unemployment insurance laws to modernize eligibility requirements, strengthen fraud prevention, and clarify rules for shared work arrangements. Key changes include stricter job search mandates requiring specific weekly actions, expanded data cross-checks against federal and state databases to catch fraudulent claims, and new protections for workers facing domestic violence or terminated for refusing COVID-19 vaccination. The legislation also formalizes the expiration and renewal process for shared work plans to ensure stability during economic downturns.
Scope change
The bill expands the scope of enforcement by mandating cross-checks against multiple external databases (including inmate and death records) and clarifies the applicability of shared work benefits during periods of high unemployment.
REQUIREMENT

Job search requirements for unemployment benefits are now more specific, requiring claimants to conduct at least five distinct work search actions per week and provide detailed weekly reports.

Shared work plans now must include a specific expiration date and require written approval from collective bargaining agents to ensure fair treatment of unionized workers.

ENFORCEMENT

New provisions require the department to cross-check claims against external data sources like the National Directory of New Hires, inmate databases, and death records to identify fraud.

ELIGIBILITY

Workers terminated for refusing a COVID-19 vaccine or booster shot are now explicitly protected from disqualification, provided the vaccine requirement was mandated by law.

New protections allow individuals to receive benefits if they leave their job due to domestic violence, preventing these separations from being treated as voluntary quits.

DEFINITION

The definition of 'suitable work' was adjusted to consider the degree of risk to health, safety, and morals during the first four weeks of a benefit period.

Floor votes · House Feb 16, 2026

How they voted

This bill passed the Senate by voice vote (no roll call recorded).
Full legislative history

Actions timeline

Total actions
11
Key actions
3
Committee
0
Amendments
2
Feb 20, 2026
Vetoed
Vetoed by Governor
executive
Feb 16, 2026
Upper · Passed
PASSED
upper
Feb 16, 2026
Upper · Passed
DPA
upper
Feb 4, 2026
Upper · Passed
DPA
upper
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of Mark Finchem
Mark Finchem
RRepublican
AZ
1