{"id":1844,"date":"2019-02-04T18:26:22","date_gmt":"2019-02-04T18:26:22","guid":{"rendered":"https:\/\/www.jacksonwhitelaw.com\/az-labor-employment-law\/?page_id=1844"},"modified":"2023-05-24T17:09:31","modified_gmt":"2023-05-24T17:09:31","slug":"arizona-labor-laws","status":"publish","type":"post","link":"https:\/\/www.jacksonwhitelaw.com\/az-labor-employment-law\/blog\/arizona-labor-laws\/","title":{"rendered":"Arizona Labor Laws"},"content":{"rendered":"

Introduction<\/h2>\n

With all the time we spend at work, it\u2019s no surprise that employment law is such a major issue in the United States. There\u2019s unfortunately no shortage of employers out there looking for opportunities to cheat their employees to save a few bucks. Even the best employers can become a nightmare to deal with when it comes time to part ways, with squabbles over unpaid bonuses, severance packages<\/a>, broken promises.<\/p>\n

When you\u2019re in a battle with your employer over compensation or fair treatment, it helps to understand the laws that protect you. It\u2019s even more helpful to have an Arizona employment attorney<\/a> by your side who can leverage these laws to ensure you\u2019re paid what you rightly earned.<\/p>\n

Minimum Wage<\/h2>\n

Arizona\u2019s minimum wage exceeds the federal minimum wage<\/a> of $7.25 an hour. As of January 2019, the current minimum wage in Arizona is $11 an hour. The minimum wage will increase to $12 an hour in January 2020, after which it will continue to rise each year based on inflation and the rising cost of living (ARS 23-363<\/a>). The exact increase applied each year will be calculated based on the one-year change in the Consumer Price Index.<\/p>\n

Tipped employees are permitted to receive a base hourly wage up to $3 less than the Arizona minimum wage, but the employee\u2019s total pay after tips must meet or exceed the state\u2019s minimum wage. To qualify as a tipped employee, the employee must receive tips on a consistent and recurrent basis (it doesn\u2019t have to be constant), and the employer cannot control how the tip is used. Examples of qualifying tipped employees include barbers, bartenders, bellhops, busboys, car wash attendants, hair stylists, valets, waiters, and waitresses.<\/p>\n

If you are a tipped employee, your employer is required to provide notice when you are hired or assigned to a new position that you will be paid the tipped minimum wage. Each pay period, the employer must then provide written notice of the hourly wage deduction taken as a tip credit. Should you discover that your total paycheck after tips does not exceed the current minimum wage, you have the right to file a wage complaint and seek unpaid wages.<\/p>\n

Overtime Pay<\/h2>\n

Arizona labor laws do not address overtime<\/a>, deferring the matter to federal overtime laws established by the Fair Labor Standards Act. Under the FLSA, employers are required to pay employees 1.5x their standard wage for time worked over 40 hours a week.\u00a0<\/span><\/p>\n

While there are some states that dictate overtime pay on a daily basis (e.g. working over 8 hours a day results in overtime, or working on weekends is automatically overtime), federal law doesn\u2019t distinguish daily hours. Contrary to popular opinion, federal overtime laws do not apply to holidays, either. While it\u2019s common practice for employers to pay 1.5x wages for working on a holiday, they are not required to do so.<\/p>\n

Vacation Time<\/h2>\n

Employers in Arizona are not required to offer paid or unpaid vacation time. However, an employer who chooses to offer a vacation time program is bound to the terms of the program for all employees.\u00a0<\/span><\/p>\n

In the absence of applicable laws, Arizona courts have ruled in favor of the company when it comes to \u201cuse it or lose it\u201d policies and accumulation caps. Again, the terms of the program established in company policy and employment contracts sets the rules, and the company is bound to follow those rules.<\/p>\n

When an employee separates from an employer, the employer is only obligated to pay out accrued vacation time with the final paycheck if company policy requires it. In the absence of a clear company policy, the employer is under no obligation to pay out the monetary value of unused vacation time when an employee is terminated or laid off.<\/p>\n

Paid Sick Time<\/h2>\n

Under ARS 23-372<\/a>, Arizona employers are required to provide all employees paid sick leave. That includes full-time, part-time, exempt, and non exempt employees. At a minimum, employees must accrue one hour of earned paid sick time for every 30 hours worked. Salaried employees who are considered exempt under the FLSA are assumed to work 40 hours a week for accrual purposes.\u00a0<\/span><\/p>\n

Arizona law also dictates an annual minimum for paid sick time. Employers with 15 or more employees are required to offer a minimum of 40 hours of paid sick time per year, while employees with less than 15 employees are only required to give a minimum of 24 hours of paid sick time per year. Accumulated sick time must carry over each year, though the employer is allowed to impose an annual cap providing the cap meets the statutory minimum. Alternately, the employer can pay out unused sick time at the end of each year instead of carrying over accumulated sick time.<\/p>\n

New employees begin accruing paid sick time immediately, but employers are allowed to impose a 90-day waiting period before a new employee can use accumulated sick time. Employees may use accumulated sick time for themselves or for the care of family members under the following circumstances:<\/p>\n