Final answer:
Option 1: A small private company that has three employees all year round and 40 employees that work 25 weeks out of the year.
Step-by-step explanation:
In Arizona, the wage payment laws apply to most employers. However, small private companies with less than four employees are exempt from these laws. Therefore, the small private company described in option 1 would not be covered by Arizona's wage payment laws because it has three employees all year round and 40 employees that work 25 weeks out of the year.
On the other hand, the small permanent placement company in option 2 and the small temporary staffing firm in option 3 would be covered by Arizona's wage payment laws.
Based on the given options, the correct answer is Option 1: A small private company that has three employees all year round and 40 employees that work 25 weeks out of the year.