Wage and Hour Disputes
Federal and state law entitles non-exempt employees to minimum wage, overtime pay, and fair treatment. Arizona’s Fair Wages and Health Families Act works in conjunction with the Federal Fair Labor Standards Act to protect Arizona employees from unfair employment practices.
Federal Fair Labor Standards Act
FLSA is the federal law which sets minimum wage, overtime, recordkeeping and child labor laws. The FLSA applies to most but not all employers. More than 143 million American workers are protected (or "covered") by the FLSA, which is enforced by the Wage and Hour Division of the U.S. Department of Labor.
There are three ways the FLSA can apply to employers:
Enterprise Coverage- Employees who work for certain business or organizations with at least two employees and with annual sales/business of at least $500,000
Individual Coverage- individual workers who are "engaged in commerce or in the production of goods for commerce" including domestic workers companions, babysitters, cooks, waiters, maids, housekeepers, nannies, nurses, janitors, caretakers, handymen, gardeners, home health aides, personal care aides, and family chauffeurs.
Specific Industries – hospitals, businesses providing medical or nursing case, schools and preschools, government agencies
State and Federal Minimum Wage: The federal minimum wage is $7.25 per hour effective July 24, 2009. Starting January 21, 2022, Arizona’s minimum wage will be $12.80 an hour, up 5.3% from $12.15 an hour in 2021. Arizona employees are entitled to the higher state minimum wage.
FLSA Overtime: Covered nonexempt employees who work 40 hours a week are entitled to overtime pay for any and all additional hours worked per “workweek.” A “workweek” is defined as any fixed and regularly recurring period of 168 hours, or seven consecutive 24-hour periods. at a rate not less than one and one-half times the regular rate of pay.
Maximum Hours per Week: There is no limit on the number of hours employees over age 16 years allowed to work in any workweek.
Weekends, Holidays, Days of Rest: The FLSA does not require overtime pay for work on weekends, holidays, or regular days of rest, unless overtime is worked on such days.
Hours Worked: Hours worked ordinarily include all the time during which an employee is required to be on the employer’s premises, on duty, or at a prescribed workplace.
Recordkeeping (PDF): Employers must display an official poster outlining the requirements of the FLSA. Employers must also keep employee time and pay records.
Child Labor: These provisions are designed to protect the educational opportunities of minors and prohibit their employment in jobs and under conditions detrimental to their health or well-being.
Arizona Fair Wages and Healthy Families Act
Arizona employees are also protected by the Arizona Fair Wages and Healthy Families Act.
Starting January 21, 2022, Arizona’s minimum wage will be $12.80 an hour, up 5.3% from $12.15 an hour in 2021. Arizona employees are entitled to the higher state minimum wage.
Under the Arizona Fair Wages and Healthy Families Act, Arizona’s Minimum Wage applies to all employers, including corporations, proprietorships, partnerships, joint ventures, limited liability companies, trusts, associations, political subdivisions of the state, individuals or other entities acting directly or indirectly in the interest of an employer in relation to an employee. The Act does not apply to the State of Arizona, the federal government, or “small businesses”.
“Small businesses” are defined by Arizona law as any corporation, proprietorship, partnership, joint venture, limited liability company, trust, or association that has less than five hundred thousand dollars in gross annual revenue and that is exempt from having to pay a minimum wage under section 206(a) of title 29 of the United States Code.” Section 206(a) of title 29 of the United States Code is a subsection of the federal Fair Labor Standards Act (FLSA) that requires employers whose employees or enterprises are engaged in “commerce” to pay their employees a minimum wage.
Part-Time and Temporary Employees: Wage and Hour Disputes can be pursued by all employees and contractors, regardless of their status as full-time, part-time, or temporary employees. State and federal minimum wage rules do not apply to volunteers or independent contractors.
Tipped Employees: Tipped employees customarily and regularly receives tips, including waiters, waitresses, bellhops, busboys, car wash attendants, hairdressers, barbers, valets, and service bartenders. Employers are permitted to pay these tipped employees a maximum of $3.00 per hour less than non-tipped employees, provided that the tipped employees earn at least minimum wage for all hours worked each week (when tips are included). However, if a tipped employee does not earn the required minimum wage after including tips, the employer is required to make up the difference.
Waiver: Your employer cannot make you agree to less than the minimum wage. Verbal agreements, written agreements, or employment contracts waiving the minimum wage are not enforceable.
Additional Blog Articles | Tyler Allen Law Firm
