Wages / Pay
No matter what job you have, you have a right to be paid a fair wage for your work. This section explains the different federal or state laws and rules that protect you from not being paid on time or the right amount.
Getting paid for work
In Arizona, the minimum wage is set by the state and can change every year based on the cost of living. Find Arizona’s current minimum wage.
The federal government also has a minimum wage. If both federal and state minimum wages apply (like when someone in Arizona works for the federal government), workers get the higher amount.
Some cities in Arizona have their own minimum wage rules, which can be higher than the state minimum wage. These local wages apply only within the city limits.
Your employer must pay you at least the Arizona minimum wage for each hour worked, with few exceptions.
Some of the exceptions include people who:
- Work for a parent or sibling.
- Work as a babysitter in someone’s home on a casual basis.
- Work for the State of Arizona or United States government.
- Work for a small business that grosses less than a certain amount of revenue.
Other jobs or workers might also receive a different rate than the state minimum wage.
This might include:
- Apprenticeships: Apprenticeships often start at a lower wage than fully skilled workers. The wage during an apprenticeship is usually 40-50% of a skilled worker’s wage and increases as the apprentice gains more skills.
- Tipped Service Employees: If you regularly receive tips at your service job, your employer can pay you up to $3.00 less per hour than the state minimum wage. The total amount of your tips and wages combined must be at least equal to the state minimum wage for all hours worked.
Earned sick time
Workers in Arizona can earn paid sick time. For every 30 hours they work, they earn one hour of paid sick time.
There are some limits to how much sick time workers can earn and use:
- If you work for a company with fewer than 15 employees, you can earn and use up to 24 hours of paid sick time each year.
- If you work for a company with 15 or more employees, you can earn and use up to 40 hours of paid sick time each year.
Employers can choose to allow their employees to earn and use more sick time than these limits. The laws about earned sick time do not apply if you work for a parent or sibling; as a babysitter in someone’s home on a casual basis; or for the state or federal government.
Overtime & holiday pay
The Fair Labor Standards Act (FLSA) is a federal law that says if you work more than 40 hours in a work week, you must be paid overtime. Overtime pay is 1.5 times your regular hourly rate.
Arizona does not have a daily overtime law, meaning you do not get overtime pay for working weekends, nights, holidays, or over 8 hours in a day. You only get overtime pay if you work more than 40 hours in a week.
Employers can choose whether or not to pay extra for holidays. If they choose to give holiday pay, the employer and the employee usually agree to the terms.
Breaks & lunches
In Arizona, employers do not have to give lunch breaks or rest breaks by law. They can choose to offer breaks, but they do not have to.
If an employer gives a break that is less than 20 minutes, they must pay you for that time. However, if the break is 30 minutes or longer and you are free from work duties, it is considered a meal break and does not need to be paid.
Deductions from paychecks for work-related expenses
The Fair Labor Standards Act (FLSA) allows employers to deduct money out of your paycheck for:
Uniform costs: Your employer can take money out of your paycheck to cover the cost of uniforms and to maintain them, like cleaning, ironing, mending. The deduction cannot reduce the employee’s wages, including overtime pay, below the minimum wage.
Mistakes: If your employer accidentally pays you too much, they can take back the extra money from future paychecks. Your employer can also deduct for cash or merchandise shortages, but only if the deduction does not make your pay fall below the minimum wage.
Problems with getting paid
In Arizona, employers must pay their employees at least twice a month. The paydays must be set and cannot be more than 16 days apart. Employers also need to provide a pay stub with your paycheck.
There are some exceptions to these rules if the employer’s primary business and payroll are outside of Arizona.
If your employer does not pay you on time, here are some steps you can take:
1. Gather Documentation:
Collect all the important papers like pay stubs, timecard records, your employee policy manual, and any messages with your employer about pay.
2. Talk to Your Employer:
Calmly and professionally talk to your boss. Sometimes mistakes happen with payroll, and a simple conversation can fix the problem.
3. Send a Formal Request:
If talking does not work, write a formal letter to your boss. This can remind them of their legal obligations.
4. File a Complaint:
If the problem continues, you can file a complaint with the Arizona Industrial Commission or the Wage and Hour Division of the U.S. Department of Labor.
If your employer is not paying you the minimum wage or earned sick time - or the amount your employer said you would be paid – you have rights. Knowing which laws protect your rights and where to find help depends on the problem.
Choose the option that best matches your situation:
Not paid for overtime work
Overtime is when a nonexempt employee works more hours than 40 hours in a week. If your employer pays you hourly, you are a nonexempt employee. Arizona does not have a specific overtime law, but your employer might be covered by the federal Fair Labor Standards Act (FLSA).
The FLSA is a federal law that requires employers to pay their workers one and a half times their normal pay rate for time worked over 40 hours in a work week. A work week is any regular 168-hour period (seven 24-hour days in a row).
There is no limit to the number of hours an employer can ask you to work in a week, and there is no law requiring extra pay for weekends, holidays, or rest days - unless you go over 40 hours. Some exceptions apply to police, firefighters, hospitals, and nursing home employees.
The Wage and Hour Division (WHD) of the U.S. Department of Labor enforces the Fair Labor Standards Act.
The law applies to employers in two ways:
Enterprise Coverage:
Applies if you work for businesses making at least $500,000 in annual sales, hospitals, nursing or care facilities, schools, preschools, or government agencies.
Individual Coverage:
Applies if your work involves interstate commerce, like making products sent to other states, making phone calls to other states, handling records of business between states, traveling to other states for work, or cleaning buildings where goods are made for shipping to other states. The law also typically covers household workers like housekeepers, full-time babysitters, and cooks.
If you’re unsure if the FLSA applies to you, call the WHD helpline at (866) 487-9243 or visit the Wage and Hour Division website.
Making a claim for overtime
If the Fair Labor Standards Act covers you or your employer, and your employer did not pay you for the overtime you worked, you can bring a claim against them. You can file an administrative complaint with the WHD or a lawsuit in court.
You must file within 2 years after you earned the wages, or 3 years if your employer ignored the FLSA on purpose.
To file a complaint for unpaid overtime with the Wage and Hour Division of the U.S. Department of Labor, you will need to:
Collect key details like:
- Your name and contact info.
- The company’s name, location, phone number, and your manager’s name.
- Type of work you did.
- How and when your employer paid you.
- Any additional information like pay stubs, time/attendance records that show your hours worked.
- Any additional information that you can provide such as copies of pay stubs, personal records of hours worked, or other information on your employers’ pay practices.
To file a civil claim in court, you will need to complete and file the right court forms.
You have two years from the last time your employer did not pay overtime to start a lawsuit. The lawsuit can include all past wage violations. If you think your employer knew about the minimum wage law and ignored it, you can ask to extend the deadline to file a lawsuit to three years.
Filing an administrative complaint does not stop or change the time requirements to file a lawsuit.
Filing a civil claim for overtime pay can be complicated. You may want to contact an attorney for help.
Exemptions from overtime pay
In Arizona, the Fair Labor Standards Act (FLSA) does not cover certain non-exempt employees. Some examples include:
- Farmworkers: Many employers do not have to pay farm workers extra for overtime.
- Hospital and Nursing Home Employees: Workers in hospitals and nursing homes might have different rules for overtime. They might count work weeks differently.
- Domestic Workers: Some workers who live with the people they care for, like nannies or caregivers, do not get extra pay for overtime.
- Seasonal or Recreational Employees: People who work at places like amusement parks or summer camps might not get extra pay for overtime.
- Railroad, Air Travel, or Motor Carrier Employees: Workers for railroads, airlines, or drivers might have different rules for overtime pay.
Paid less than minimum wage or not paid earned sick time
In Arizona, the minimum wage is set by the state and can change every year based on the cost of living. The same law that sets the minimum wage also requires that Arizona workers earn paid sick time – one hour of paid sick time for every 30 hours they work.
If your employer is underpaying you or not paying you earned sick time, you can file a complaint with the Industrial Commission of Arizona (ICA) or file a lawsuit against your employer.
You must file a complaint within one year of earning the wages. You can only claim up to $5,000 in unpaid wages. If you are owed more, contact the U.S. Department of Labor or file a civil lawsuit.
To file a complaint about your employer paying less than the minimum wage or not paying earned sick time with the Industrial Commission of Arizona, you will need to:
Fill out the Minimum Wage or Earned Sick Time complaint form as completely as possible.
Be sure to include:
- The legal name of your employer (found on your paystub or tax form). You can send a copy of your paystub, tax form, or documentation to help the Labor Department identify your employer.
- Your signature and date.
- Copies of any documents or evidence like proof of hours worked, pay rate, and what your employer paid you. Do not send your original documents.
- Your current address and name, even if a representative files a complaint for you.
To file a civil claim in court, you will need to complete and file the right court forms.
If you file a lawsuit, you have two years from the last time your boss did not pay you. The lawsuit can include all past wage violations. If you think your boss knew about the minimum wage law and ignored it, you can ask to extend the deadline to file a lawsuit to three years.
You can find court forms and resources on AZCourtHelp.org or contact your local Superior Court for more information.
Filing a civil claim for unpaid wages can be complicated. You may want to contact an attorney for help.
If you make more than minimum wage
If your employer is not paying you the right wages or other pay you deserve, even if you make more than the minimum wage, you can file an administrative complaint with the Industrial Commission of Arizona (ICA).
You can file a complaint for different types of pay, including:
- Wages higher than minimum wage.
- Bonuses.
- Mileage reimbursement.
- Vacation pay.
- Insufficient funds (NSF) checks.
- Unauthorized deductions for wages.
If your employer owes you overtime pay, you will need to follow the instructions in the Overtime Pay section. You can only claim up to $5,000 in unpaid wages. If you are owed more, contact the U.S. Department of Labor or file a civil lawsuit.
To file a complaint with the Industrial Commission of Arizona about the pay your employer owes you, and you make more than the minimum wage, you will need to:
Fill out the Unpaid Wage complaint form as completely as possible.
Be sure to include:
- The legal name of your employer (found on your paystub or tax form). You can send a copy of your paystub, tax form, or documentation to help the Labor Department identify your employer.
- Your signature and date.
- Copies of any documents or evidence like proof of hours worked, pay rate, and what your employer paid you. Do not send your original documents.
- Your current address and name, even if a representative files a complaint for you.
What happens after I file an administrative complaint with the Industrial Commission of Arizona?
When you file a complaint with the Industrial Commission of Arizona (ICA), here is what happens:
The ICA will look at your complaint and any proof you give them.
They will investigate your claims to see if your employer broke the law.
After they review everything, they will either decide or dismiss your complaint.
If the ICA decides your employer did break the law, they will order your employer to pay you the wages they owe you, plus interest, and an extra amount equal to double the wages owed.
If the ICA decides your employer did not break the law, they will dismiss your complaint. This means you cannot file another complaint about the same wage issue.
The ICA can dismiss your complaint because:
- You filed it more than one year after you earned the wages.
- You did not follow the rules for filing the complaint, like not including the right information or not filing on time.
- Your claim is more than $5,000.
- The ICA investigates and finds your employer did not break the law.
- You already filed a lawsuit in court about the same wage claim.
- Your employer filed for bankruptcy.
- The ICA cannot find your employer based on the information you gave them.
- You signed a paper letting your employer withhold the wages.
What if the ICA rules against my wage claim?
If the ICA decides against your wage claim, you can ask for another chance to prove your case. This additional review is an appeal, and it involves an administrative hearing.
An administrative hearing takes place at the Office of Administrative Hearings. During this hearing, an Administrative Law Judge (ALJ) will listen to your case and decide.
To request a hearing, you need to act quickly. You must file your request within 30 days after you receive the ICA’s decision.
Your request should include your name, address, and a statement that you want a hearing. Either you or someone you choose to represent you must sign the request.
What happens after I file a request for a hearing?
After you ask for a hearing, the Administrative Law Judge (ALJ) will schedule it. At the hearing, you can tell your side of the story and show proof, like documents and witnesses.
The ALJ will listen to everything and look at your evidence.
After the hearing, the ALJ will decide and write it down within 30 days. If the ALJ does not decide in your favor, you can ask for another hearing. You must file a request for a hearing within 15 days after you get the ALJ’s decision.
You can ask for a rehearing for one of these reasons:
- There were problems with how the ALJ ran the hearing, or unfair decisions that stopped someone from getting a fair hearing.
- Something unexpected happened that even a careful person could not have prevented.
- New important evidence that you could not have found earlier, even if a lot of effort went into looking, and was not shown at the hearing.
- Mistakes about what evidence was allowed or not allowed, or legal mistakes made during the hearing.
- The ICA or judge was unfair or biased.
- The facts or legal conclusions in the decision do not match the evidence or go against the law.
If you do not agree with the decision from the hearing or review, you can ask the Superior Court to look at your case. You need to start this process within 35 days after you get the decision, either by mail or in person. If you do not act within this time, the decision becomes final.
Retaliation
State and federal laws protect you from your employer taking negative actions against you (retaliation) for filing a wage complaint.
It might be retaliation if your employer:
- Threatens you.
- Fires you.
- Writes you up.
- Suspends you.
- Demotes you.
- Reduces your work or work hours.
You have a right to be paid a fair wage for your work and your employer should not treat you differently if you stand up for your rights. If your employer retaliates against you after you make a claim, you can:
File an administrative complaint with the Industrial Commission of Arizona (ICA).
You must file a retaliation claim with the ICA within one year of the retaliation or when you knew or should have known about it.
File a civil lawsuit in court.
For retaliation under the Arizona Minimum Wage Act and/or Sick Leave, you must file within two years after the last violation happens. For retaliation under the federal overtime law (FLSA), you must file within two years, or three years if the violation was on purpose.
This topic can be complicated. You may want to talk to a legal professional for help.
This website shares general legal information. Some content may be simplified or may not reflect recent changes in law. If you need advice for your specific situation, you should talk to a legal professional.