Did you know that a single Arizona company was recently ordered to pay $2.6 million in unpaid overtime wages? This shocking settlement highlights why understanding arizona overtime laws is crucial for both employers and employees.
In fact, Arizona’s overtime rate stands at $21.53 per hour – one and a half times the regular minimum wage of $14.35. However, whether you’re entitled to this overtime pay depends on various factors, including your employment status and weekly hours worked.
For instance, if you’re a salaried employee earning over $844 per week, you might be exempt from overtime pay under federal law. Part-time workers, on the other hand, qualify for overtime when exceeding 40 hours in a workweek, just like their full-time counterparts.
Ready to understand your overtime rights and obligations in Arizona? Let’s break down everything you need to know about overtime laws in Arizona to ensure fair compensation and legal compliance.
Under Arizona overtime laws, non-exempt employees must receive 1.5 times their regular pay rate for hours worked beyond 40 in a workweek [1]. Additionally, the state follows federal labor laws outlined in the Fair Labor Standards Act (FLSA).
Starting July 1, 2024, the standard salary threshold for overtime exemption will increase to $844 per week ($43,888 annually) [2]. Subsequently, on January 1, 2025, this threshold will rise further to $1,128 per week ($58,656 annually) [3]. Nevertheless, a recent federal court decision in Texas has invalidated these increases, reinstating the 2019 threshold of $684 per week ($35,568 annually) [2].
Employers must maintain accurate records of all hours worked, wages paid, and overtime hours for a minimum of three years [4]. Furthermore, overtime wages must be paid by the next regular payday following the period in which the overtime work was performed [5].
Certain key provisions apply to overtime compensation:
Notably, employees cannot waive their right to overtime pay, even through mutual agreement with their employer [5]. Moreover, employers must pay for all overtime hours worked, regardless of whether those hours were authorized beforehand [5].
Some workers are exempt from overtime requirements, primarily those in executive, administrative, or professional roles who meet specific salary and duty criteria [5]. Outside sales employees, certain computer professionals, and some agricultural workers also fall under exempt categories [7].
The Department of Labor’s Wage and Hour Division (WHD) oversees enforcement of overtime laws in Arizona [4]. Should violations occur, employers may face penalties and be required to pay back wages. Particularly, the statute of limitations allows workers to recover back wages plus liquidated damages within two years, extending to three years for willful violations [8].
Special situations in overtime compensation often arise when employees work multiple jobs or unusual schedules. Understanding these scenarios ensures proper wage calculations and compliance with Arizona overtime laws.
Multiple Jobs and Joint Employment
Working two different positions at the same company requires careful overtime calculations. Specifically, employers must combine all hours worked across different roles when an employee exceeds 40 hours in a workweek [9]. For employees with varying pay rates, overtime calculations use a weighted average of all rates earned during that week [10].
Travel Time and Training
Travel time compensation depends on specific circumstances. Generally, standard commuting between home and work remains unpaid. Yet, travel between multiple worksites during a single day counts as compensable time [11]. For overnight travel, employers must pay for all travel occurring during normal working hours, even on weekends or holidays [11].
Training sessions demand compensation unless all four conditions are met:
On-Call Time and Waiting Periods
On-call compensation depends primarily on freedom of movement. Employees must receive payment when required to stay on company premises or remain so close that they cannot effectively use time for personal activities [13]. Waiting time typically counts as work time when employers control the period or prevent employees from using it freely [13].
Weekend and Holiday Work
Arizona law does not mandate extra pay for weekend or holiday shifts [1]. These hours only qualify for overtime rates when total weekly hours exceed 40 [14]. Similarly, paid time off, holidays, and sick leave hours do not count toward overtime calculations [5].
Public Sector Exceptions
Some public sector roles, such as law enforcement officers, operate under different overtime rules. These positions might follow alternate work periods beyond the standard seven-day workweek [15]. For instance, certain roles only qualify for overtime after working 80 hours in a two-week cycle [15].
Maintaining accurate records stands as the cornerstone of overtime compliance in Arizona. Employers must preserve detailed documentation of employee information, work hours, and compensation for at least four years [16]. These records serve as essential proof of compliance while protecting both parties in case of disputes.
Essential recordkeeping requirements encompass:
Accurate timekeeping remains fundamental toward ensuring proper overtime payments. Nonexempt employees must record their daily work hours precisely, while exempt employees document their presence or schedule exceptions [12]. This joint responsibility between workers and supervisors helps maintain compliance with state and federal regulations.
Employers should implement robust systems to track:
Beyond basic recordkeeping, employers must maintain comprehensive payroll documentation:
For tipped employees, additional records must detail:
Proper documentation protects against potential wage disputes while ensuring accurate overtime calculations. Regular audits of these records help identify compliance gaps before they become significant issues. Through meticulous recordkeeping and systematic review processes, employers can maintain adherence to Arizona overtime regulations while safeguarding both business interests and worker rights.
Understanding Arizona overtime laws proves essential for maintaining fair workplace practices and avoiding costly violations. Proper overtime compensation starts with knowing the basic rate of 1.5 times regular pay for hours worked beyond 40 per week.
Significant changes await Arizona employers through 2024-2025, particularly regarding salary thresholds for overtime exemption. These updates make it crucial for businesses to review their compensation structures and employee classifications.
Careful attention to special situations – whether multiple job roles, travel time, or on-call hours – helps prevent compliance issues. Additionally, maintaining detailed records of work hours, wages, and overtime calculations safeguards both employers and employees during potential disputes.
Remember that overtime rights remain protected under state and federal laws, regardless of workplace agreements. Regular review of your overtime policies, thorough documentation, and prompt payment of overtime wages will help ensure compliance with Arizona labor regulations while protecting your business from costly penalties.
Q1. What are the basic overtime rules in Arizona for 2025?
Non-exempt employees in Arizona are entitled to 1.5 times their regular pay rate for hours worked beyond 40 in a workweek. The overtime rate is calculated at $21.53 per hour, based on the regular minimum wage of $14.35. However, eligibility depends on factors like employment status and weekly hours worked.
Q2. How do recent legal changes affect overtime exemption thresholds?
A federal court decision has invalidated proposed increases to the salary threshold for overtime exemption. As a result, the threshold remains at $684 per week ($35,568 annually), as set in 2019, rather than the previously planned increases for 2024 and 2025.
Q3. Are there special overtime considerations for employees with multiple jobs?
Yes, when an employee works multiple positions at the same company, all hours worked across different roles must be combined when calculating overtime. For varying pay rates, a weighted average of all rates earned during the week is used for overtime calculations.
Q4. How is overtime calculated for travel time and training?
Travel time between worksites during a workday is generally compensable. For overnight travel, employers must pay for travel occurring during normal working hours, even on weekends or holidays. Training sessions are typically paid unless they meet specific criteria, such as being voluntary and outside regular work hours.
Q5. What recordkeeping requirements must employers follow for overtime compliance?
Employers must maintain detailed records of employee information, work hours, and compensation for at least four years. This includes daily and weekly work hours, overtime calculations, regular hourly rates, total earnings, and all wage deductions and additions. Accurate timekeeping is crucial for both exempt and non-exempt employees to ensure proper overtime payments.
[1] – https://www.findlaw.com/state/arizona-law/arizona-overtime-laws.html
[2] – https://cfo.asu.edu/flsa
[3] – https://azmirror.com/briefs/millions-of-salaried-workers-to-become-eligible-for-overtime-under-new-biden-rule/
[4] – https://truein.com/arizona-overtime-laws/
[5] – https://www.workforcehub.com/hr-laws-and-regulations/arizona/arizona-overtime-laws/
[6] – https://timeero.com/resources-page/arizona-overtime-laws
[7] – https://www.jibble.io/labor-laws/us-state-labor-laws/arizona/overtime-laws
[8] – https://www.overtime-flsa.com/state-labor-laws/arizona/
[9] – https://www.tblaw.com/wp-content/uploads/2020/11/0420-AZ.pdf
[10] – https://compensation.blr.com/Compensation-news/Compliance/Employee-Overtime/Calculating-Overtime-for-Employee-with-Two-Differe/
[11] – https://gao.az.gov/sites/default/files/2022-05/5060%2520Travel%2520Time%2520and%2520Compensation%2520150701.pdf
[12] – https://policy.arizona.edu/employment-human-resources/fair-labor-standards-act-and-overtime-policy
[13] – https://www.azlawhelp.org/articles_info.cfm?mc=2&sc=18&articleid=367
[14] – https://www.fendonlaw.net/employment-lawyer/arizona-overtime-laws/
[15] – https://www.goco.io/blog/arizona-overtime-laws-guide
[16] – https://des.az.gov/services/employment/unemployment-employer/employer-requirements-record-keeping
[17] – https://www.resilientemploymentlaw.com/faqs/wage-recordkeeping
Our unpaid overtime attorneys based in Dallas, Texas have national unpaid overtime litigation experience in federal courts throughout the United States. Mr. Siegel has personally represented clients in wage and hour suits in at least 20 states, including Alaska, Arizona, California, Colorado, Illinois, Louisiana, Massachusetts, Michigan, Missouri, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Pennsylvania, Tennessee, Texas, and Virginia.
