• Those who work for the U.S. government or for the state of Arizona.

Employers cannot withhold wages unless required to do so by state or federal law (such as wage garnishments for child support). They may also withhold if there is a reasonable, good faith dispute over the amount of wages owed. Terminated employees must receive their final check for completed work (1) seven workdays following the date of termination, or (2) the employer’s next designated pay day, whichever comes first. Employees who resign receive their final check on the next designated pay day.

When Must Employers Pay Overtime?

Employers in Arizona must pay non-exempt employees at a rate of time and a half (1½) for every hour in excess of 40 hours per week they work. Overtime for public employees may be calculated on a bi-weekly basis. Almost everyone who earns less than $23,600 per year is a non-exempt employee. The key to understanding the overtime rules is knowing who qualifies as a non-exempt employee. The most common categories of exempt employees are:

• Drivers

• Farm workers

• Mechanics and Partsmen

• Administrative employees

• Executive employees

• Professional employees

Even though administrative, executive, and professional employees are exempt under the FLSA, they are still covered by Arizona’s minimum wage laws. The employer is required to pay them a salary that equals or exceeds minimum wage for all the hours they work. For example: Jane, an office administrator, works 60 hours a week. Her weekly salary must be at least $720.00 (60 x $12) to comply with Arizona law. There are specific salary and management tests under the FLSA to determine who is an exempt employee. Those are rather complex and will not be detailed here. For more information, read the overtime site listed in resources at the end of this article.

What About Wage Rules for Being On-Call, for Training Time, Travel Time, etc.?

The FLSA and Arizona Minimum Wage Law set out standards to govern what is considered compensable work time and how work time is to be compensated. Under Arizona law, an employee is considered to be on compensable duty if he is actively working or waiting to work and is not permitted to use the time for his own purposes. AZ Admin. Code R20-5-1202(22).

On-call time is compensable only when the employee is unable to use the time for his or her own purposes. If you can stay home, watch TV, or go out to eat, the time you are on-call is not compensable. AZ. Admin. Code R20-5-1202(22). Arizona law does not address paying for sleeping time, travel time, meeting time, or training time.

The FLSA does offer some guidance on training time. Training time must be counted as work time unless four conditions are met:

• The attendance is outside the employee’s regular work hours,

• The attendance is voluntary,

• The meeting, seminar, or training is not directly related to the employee’s job, and

• The employee does not perform productive work while attending.

Break time is another issue that arises in employment law. There is no requirement in Arizona law that an employee be given break time or lunch periods. However, if breaks are given, federal law requires wages be paid for all breaks of 20 minutes or less. Lunch breaks of 30 minutes or more are not required to be compensated.

There is no requirement in Arizona law that employees be paid while on jury duty. However, an employer may not fire an employee who complies with a summons for jury duty; nor can the employer require the employee to use vacation or sick time while serving as a juror.

Vacation, Holidays, and Sick Time

Arizona law does not require employees to receive paid vacation time or to be compensated for holidays. Employers who elect to offer vacation time must comply with internal policies and procedures. A.R.S. §23-350(5). Employers may institute a use it or lose it policy for vacation time so long as employees are given a reasonable opportunity to use the time they have accrued. There is no legal requirement in Arizona law that employers must pay accrued vacation when an employee leaves the company.

In 2016, Arizona passed the Fair Wages and Healthy Families Act which requires all employers with 15 or more employees to pay sick time. Employees can accrue up to 40 hours of earned sick time each year. A.R.S. § 23-372. It accrues at a rate of one hour of sick time for every 30 hours worked.

When Legal Employment Rights are Violated?

If you believe your employer has violated your rights, you can file a complaint with the Industrial Commission of Arizona. Go to: https://www.azica.gov/claims-filing-claim. You can also file a complaint with the United States Department of Labor. Go to: https://www.dol.gov/agencies/whd.

Resources:

https://www.employmentlawhandbook.com/wage-and-hour-laws/state-wage-and-hour-laws/arizona/#1

https://www.overtime-flsa.com/state-labor-laws/arizona-overtime-laws/

https://www.acf.hhs.gov/css/resource/the-difference-between-an-independent-contractor-and-an-employee

https://www.azleg.gov/viewdocument/?docName=https://www.azleg.gov/ars/23/00372.htm

Attached Document
 Know Your Rights in the Workplace