Ariz. Rev. Stat. § 23-621 – Unemployed; definition

A. An individual shall be deemed "unemployed" with respect to any week during which the individual performs no services and with respect to which no wages are payable to the individual, or with respect to any week of less than full-time work without any fault on the individual's part if the wages payable to the individual with respect to the week are less than the individual's weekly benefit amount.
B. An individual shall not be deemed "unemployed" with respect to any week of less than full-time work if the loss of full-time work is directly attributable to the fault of the individual.
C. An individual shall not be deemed "unemployed" if the individual is receiving wages in lieu of notice or severance pay. The period of time for which wages in lieu of notice or severance pay are allocable shall be determined by either of the following:
1. 1. If there was a written contract between the employer and the claimant in effect at the time of separation, allocate to the appropriate period in accordance with the contract, continuing for the number of work days that the pay would cover at the regular wage or salary rate.
2. 2. If no written contract was in effect at the time of separation, allocate to the appropriate period following the last day of performance of services, continuing for the number of work days that the pay would cover at the regular wage or salary rate.
D. For the purposes of this section, "severance pay" includes all amounts that an employer pays to an employee due to the employee's resignation, termination or participation in an exit incentive program or inclusion in a reduction in force or in consideration for the employee's release of actual or potential claims for the termination of employment. Severance pay does not include any amounts that the employer pays for health benefits or pursuant to any employee benefit plan.