State Law > Arizona > Arizona Wage Payment Law

Arizona Wage Payment Law

 

Arizona's wage payment law is located in the following sections of the Arizona Revised Statutes.

  • 23-350. Definitions.
  • 23-351. Designation of paydays for employees; payment; exceptions; violation; classification.
  • 23-352.  Withholding of wages.

  • 23-353. Payment of wages of discharged employee; violation; classification.

  • 23-356. Wage claims.

23-350.  Definitions

In this article, unless the context otherwise requires:

1.  "Department" means the labor department of the industrial commission of Arizona.

2.  "Employee" means any person who performs services for an employer under a contract of employment either made in this state or to be performed wholly or partly within this state.

3.  "Employer" means any individual, partnership, association, joint stock company, trust, corporation, the administrator or executor of the estate of a deceased individual or the receiver, trustee or successor of any of such persons employing any person.  Employer also includes this state and any county, municipality, school district or other political subdivision of this state.

4.  "Hours worked" includes all time an employee is employed.

5.  "PAYROLL CARD ACCOUNT" MEANS AN ACCOUNT THAT IS DIRECTLY OR INDIRECTLY ESTABLISHED THROUGH AN EMPLOYER AND TO WHICH ELECTRONIC FUND TRANSFERS OF AN EMPLOYEE'S WAGES ARE MADE ON A RECURRING BASIS WHETHER THE ACCOUNT IS OPERATED OR MANAGED BY THE EMPLOYER, A THIRD-PARTY PAYROLL PROCESSOR, A DEPOSITORY INSTITUTION OR ANY OTHER PERSON.

6.  "Wages" means nondiscretionary compensation due an employee in return for labor or services rendered by an employee for which the employee has a reasonable expectation to be paid whether determined by a time, task, piece, commission or other method of calculation.  Wages include sick pay, vacation pay, severance pay, commissions, bonuses and other amounts promised when the employer has a policy or a practice of making such payments.


23-351.  Designation of paydays for employees; payment; exceptions; state employees violation; classification




A.  Each employer in this state shall designate two or more days in each month, not more than sixteen days apart, as fixed paydays for payment of wages to the employees.

B.  Notwithstanding the provisions of subsection A, each employer in this state whose principal place of business is located outside the state of Arizona and whose payroll system is centralized outside the state of Arizona may designate one or more days in each month as fixed paydays for payment of wages to the following employees:

1.  Professional, administrative or executive employees or employees employed in the capacity of an outside salesman as those terms are defined under the fair labor standards act of 1938, as amended.

2.  Employees employed in a supervisory capacity as defined under the national labor relations act.

C.  Each employer shall, on each of the regular paydays, pay to the employees all wages due the employees up to such date, except:

1.  In the case of employees remaining in the service of any such employer, with the exception of school district employees, all wages other than overtime or exception pay not to exceed five days of labor may be withheld.  School districts may withhold wages during their normal two week payroll processing cycle.  An employer other than a school district may satisfy the requirements of this paragraph by any of the following:

(a)  Personally delivering the wages to the employee no later than five BUSINESS days after the end of the most recent pay period.

(b)  Depositing the wages in the United States mail no later than five BUSINESS days after the end of the most recent pay period for delivery to an address specified by the employee.

(c)  Personally delivering the wages to the employee no later than ten days after the end of the most recent pay period for an employer whose payroll system is centralized outside the state of Arizona.

2.  In the case of employees of school districts or of the Arizona state SCHOOLS for the deaf and the blind, the annual salary may be prorated in any number of payments, and the employee may select whether to have the salary prorated or paid during the actual months worked.  If the employee's salary is prorated, all such payments still due at the close of the school attendance year or fiscal year may at the option of the employee be paid in either a lump sum or paid within a period of two months after the close of the fiscal year.

3.  Overtime or exception pay shall be paid no later than sixteen days after the end of the most recent pay period.

D.  AN EMPLOYER MAY CHOOSE ONE OF THE FOLLOWING METHODS TO PAY WAGES TO EMPLOYEES UNDER SUBSECTION A:

1.  IN LAWFUL CURRENCY OF THE UNITED STATES.

2.  IN NEGOTIABLE BANK CHECKS.

3.  IN THE CASE OF THIS STATE OR ANY POLITICAL SUBDIVISION OF THIS STATE, WARRANTS PAYABLE ON DEMAND AND BEARING EVEN DATE WITH THE PAYDAY.

4.  WITH THE WRITTEN CONSENT OF THE EMPLOYEE, BY DEPOSIT ON THE PAYDAY TO THE EMPLOYEE'S CREDIT AT A FINANCIAL INSTITUTION OF THE EMPLOYEE'S CHOICE THAT IS A MEMBER OF THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER COMPARABLE FEDERAL OR STATE AGENCY.

5.  IF THE EMPLOYER HAS OFFERED DEPOSIT ON THE PAYDAY TO THE EMPLOYEE'S CREDIT AT A FINANCIAL INSTITUTION OF THE EMPLOYEE'S CHOICE THAT IS A MEMBER OF THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER COMPARABLE FEDERAL OR STATE AGENCY AND THE EMPLOYEE DOES NOT PROVIDE CONSENT AND DOES NOT DESIGNATE A FINANCIAL INSTITUTION, BY DEPOSIT ON THE PAYDAY TO THE EMPLOYEE'S CREDIT TO A PAYROLL CARD ACCOUNT.

E.  When an employee's wages are paid by deposit in a financial institution THE EMPLOYEE shall be furnished with a WRITTEN OR ELECTRONIC statement of THE EMPLOYEE'S earnings and withholdings.  Any wage deposit plan adopted by an employer shall entitle the employee to one withdrawal for each deposit, free of any service charge to the employee.  The consent of an employee for payment of wage by deposit IN A FINANCIAL INSTITUTION shall not constitute a prior assignment of wages to the financial institution and is revocable at any time prior to the transmittal to the financial institution by the employer.  No person shall be denied employment nor discharged OR REPRIMANDED for refusal to consent to payment of wage by deposit in a financial institution.

F.  WHEN AN EMPLOYEE'S WAGES ARE PAID TO A PAYROLL CARD ACCOUNT THE EMPLOYEE SHALL BE FURNISHED WITH A WRITTEN OR ELECTRONIC STATEMENT OF THE EMPLOYEE'S EARNINGS AND WITHHOLDINGS.  A PAYROLL CARD ACCOUNT PLAN ADOPTED BY AN EMPLOYER SHALL ENTITLE THE EMPLOYEE TO ONE FREE WITHDRAWAL FOR EACH DEPOSIT OF WAGES PER PAY PERIOD BUT NOT MORE FREQUENTLY THAN ONCE PER WEEK.  AN EMPLOYER SHALL ALSO PROVIDE A LIST OF ALL FEES ASSOCIATED WITH THE USE OF AN EMPLOYER PROVIDED PAYROLL CARD ACCOUNT TO AN EMPLOYEE WHO RECEIVES WAGES BY DEPOSIT TO A PAYROLL CARD ACCOUNT.

G.  Subsection B shall not apply to employees whose salaries are subject to provisions of collective bargaining agreements.

H.  EACH EMPLOYER IN THIS STATE, IN ITS DISCRETION, MAY PAY ALL WAGES DUE AN EMPLOYEE BY DEPOSIT ON THE PAYDAY AT A FINANCIAL INSTITUTION OF THE EMPLOYEE'S CHOICE OR, IF THE EMPLOYEE DOES NOT DESIGNATE A FINANCIAL INSTITUTION, TO A PAYROLL CARD.  FOR THE PURPOSES OF THIS SUBSECTION, "FINANCIAL INSTITUTION" MEANS A MEMBER OF THE FEDERAL DEPOSIT INSURANCE CORPORATION OR OF ANY OTHER COMPARABLE FEDERAL OR STATE AGENCY.


23-352.  Withholding of wages

No employer may withhold or divert any portion of an employee's wages unless one of the following applies:

  1.  The employer is required or empowered to do so by state or federal law.


2.  The employer has prior written authorization from the employee.  An employer shall not withhold wages under a written authorization from the employee past the date specified by the employee in a written revocation of the authorization, unless the withholding is to resolve a debt or obligation to the employer or a court orders otherwise.  


3.  There is a reasonable good faith dispute as to the amount of wages due, including the amount of any counterclaim or any claim of debt, reimbursement, recoupment or set-off asserted by the employer against the employee.  (Approved 4/18/2011)


23-353. Payment of wages of discharged employee; violation; classification

A. When an employee is discharged from the service of an employer, he shall be paid wages due him within three working days or the end of the next regular pay period, whichever is sooner.

B. When an employee quits the service of an employer he shall be paid in the usual manner all wages due him no later than the regular payday for the pay period during which the termination occurred. If requested by the employee, such wages shall be paid by mail.

C. Every employer, including the state and its political subdivisions, shall pay wages or compensation due an employee under this section in lawful money of the United States by negotiable check, draft, money order or warrant, in the case of the state or any political subdivision, which can be immediately redeemed in cash at a bank or other financial institution, payable on demand or by deposit in a financial institution of employee's choice and dated not later than the day upon which the check, draft, money order or warrant is given, and not otherwise.

D. A person violating this section is guilty of a petty offense.

23-354. Preference of wages in insolvency proceedings or upon death of employer

A. In assignments of property for benefit of creditors or in proceedings in insolvency, the wages of salesmen, clerks or laborers employed by the debtor or insolvent, to the amount of two hundred dollars each for services rendered within sixty days previous to such assignment or insolvency proceedings, are preferred claims and shall be paid by the trustee, receiver, or assignee before any other creditor is paid.

B. Upon the death of an employer, such wages of such employees rank in priority next after the funeral expenses, expenses of the last sickness, the charges and expenses of administering upon the estate and the allowance to the surviving spouse and infant children, and shall be paid before any other claims against the estate of the deceased person.

23-355. Action by employee to recover wages; amount of recovery

If an employer, in violation of the provisions of this chapter, shall fail to pay wages due any employee, such employee may recover in a civil action against an employer or former employer an amount which is treble the amount of the unpaid wages.

23-356. Wage claims

A. Instead of proceeding under section 23-355, an employee may file a written claim with the department for unpaid wages against an employer if the amount of such wages does not exceed two thousand five hundred dollars and if such claim is filed within one year of the accrual of such claim.

B. The department may, on behalf of an employee, or the employee may obtain judgment and execution, garnishment, attachment or other available remedies for collection of unpaid wages established by final determination by the department.

C. The department may receive payment on wage claims on behalf of employees. The department may deposit, pursuant to sections 35-146 and 35-147, monies it receives as payment on wage claims in a special state fund for disbursement to wage claimants on proper authorization by the department.

23-357. Investigation of wage claims

A. The department shall investigate wage claims timely filed under section 23-356 to determine if wages are due or if a dispute exists between the parties to the claim.

B. Upon completion of its investigation, the department shall notify the parties to the claim of its findings in writing, which may include a finding that a dispute exists which cannot be resolved by the department's investigation. If it is determined that the claim for unpaid wages is valid, the department shall direct that the unpaid wages be paid by the party responsible for their payment.

23-358. Review of department determination

A. A party aggrieved by a determination under section 23-357 may seek review pursuant to title 12, chapter 7, article 6.

B. If the department's determination finds that there is a dispute which cannot be resolved by investigation, the employee may attempt to recover the amount of wages claimed to be due by instituting a civil action pursuant to section 23-355.

23-359. Effect of department determination

Unless review is sought pursuant to section 23-358, the department's determination shall be final upon the expiration of the time for seeking review. A final determination by the department shall be in writing and signed by the director. The final determination may be filed, recorded and executed upon in the same manner as provided by law for judgments and shall draw interest at the same rate as a judgment from the date of final determination. A final determination of the department which determines or purports to determine the validity or amount of any counterclaim or any claim of debt, reimbursement, recoupment or set-off by the employer shall be binding and conclusive only as to the amount of wages to be paid the employee, if any, and shall not in any way preclude the employer from raising and litigating such counterclaim or claim in a civil action.

23-360. Penalty

An employer who has been ordered by the department pursuant to section 23-357 or a court to pay wages due an employee and who fails to do so within ten days after the order becomes final is liable to pay the employee an amount which is equal to treble the amount of the unpaid wages and which shall be subject to interest at the legal rate.

23-361. Rules and regulations

The commission may adopt such rules and regulations as necessary for the purpose of administering and enforcing this article.

23-361.02.  Paycheck deductions; authorization; civil penalty; definition

  1.  For deductions after October 1, 2011, a public or private employer in this state shall not deduct any payment from an employee’s paycheck for political purposes unless the employee annually provides written or electronic authorization to the employer for the deduction.
  2.  If a deduction is made from an employee’s paycheck for multiple purposes after October 1, 2011, the employer shall obtain a statement from each entity to which the deductions are paid that indicates the payment is not used for political purposes or a statement that indicates the maximum percentage of the payment is not used for political purposes or a statement  that indicates the maximum percentage of the payment that is used for political purposes.   The employer shall not deduct any payment beyond that specified for nonpolitical purposes without the annual written or electronic permission of the employee.

C.  Within ninety days after the effective date of this act, the attorney general shall adopt rules that describe the acceptable forms of employee authorization and entity statements under this section.

D.  If an employer knowingly deducts payments in violation of subsection A of this section or an entity provides an inaccurate statement under this section, the respective employer or entity is subject to a cvil penalty of at least ten thousand dollars for each violation.  The attorney general shall impose and collect the civil penalties under this subsection and shall deposit, pursuant to sections 35-146 and 35-147, all civil penalties collected pursuant to this section in the state general fund.   

E.  This section does not apply to any of the following:

1.  A SINGLE DEDUCTION FOR NONPOLITICAL PURPOSES.

2. DEDUCTIONS FOR SAVINGS OR CHARITABLE CONTRIBUTIONS.

3.  DEDUCTIONS FOR EMPLOYEE HEALTH CARE, RETIREE OR WELFARE BENEFITS.

4.  DEDUCTIONS FOR STATE, LOCAL OR FEDERAL TAXES.

5.  DEDUCTIONS FOR CONTRIBUTIONS TO A SEPARATE SEGREGATED FUND PURSUANT TO 2 UNITED STATES CODE SECTION 441b(b) OR SECTION 16-920, SUBSECTION A, PARAGRAPH 3.

6.  ANY DEDUCTION OTHERWISE REQUIRED BY LAW.

F.  IF AN EMPLOYEE HAS AUTHORIZED A DEDUCTION FROM THE EMPLOYEE'S PAYCHECK UNDER THIS SECTION AND THE EMPLOYEE RESIGNS MEMBERSHIP IN THE ASSOCIATION OR ORGANIZATION FOR WHICH THE DEDUCTION WAS AUTHORIZED, THE EMPLOYEE'S AUTHORIZATION FOR THE DEDUCTION IS RESCINDED UPON THE EMPLOYER'S RECEIPT FROM THE EMPLOYEE OF WRITTEN NOTICE OF THE RESIGNATION.  THE EMPLOYER SHALL HAVE ONE PAY PERIOD TO PROCESS THE RESCISSION.

G.  THIS SECTION DOES NOT PREEMPT ANY FEDERAL LAW.

H.  FOR THE PURPOSES OF THIS SECTION, EMPLOYEE DOES NOT INCLUDE ANY PUBLIC SAFETY EMPLOYEE, INCLUDING A PEACE OFFICER, FIRE FIGHTER, CORRECTIONS OFFICER, PROBATION OFFICER OR SURVEILLANCE OFFICER, WHO IS EMPLOYED BY THIS STATE OR A POLITICAL SUBDIVISION OF THIS STATE.

I.  FOR THE PURPOSES OF THIS SECTION, "POLITICAL PURPOSES" MEANS SUPPORTING OR OPPOSING ANY CANDIDATE FOR PUBLIC OFFICE, POLITICAL PARTY, REFERENDUM, INITIATIVE, POLITICAL ISSUE ADVOCACY, POLITICAL ACTION COMMITTEE OR OTHER SIMILAR GROUP.

23-362. Minimum wage; prohibition

A. The legislature declares that the establishment of a uniform minimum wage is a matter of statewide concern.

B. No political subdivision of this state may establish, mandate or otherwise require a minimum wage that exceeds the federal minimum wage prescribed in 29 United States Code section 206.

Login to read more.

Related Articles

12/06/2008 Arizona Wage Payment Law - 23-350. Definitions
12/06/2008 Arizona Wage Payment Law - 23-351. Designation of Paydays for Employees; Payment; Exceptions; Violation; Classification
12/06/2008 Arizona Wage Payment Law - 23-352. Withholding of Wages
12/06/2008 Arizona Wage Payment Law - 23-353. Payment of Wages of Discharged Employees; Violation
12/06/2008 Arizona Wage Payment Law - 23-354. Preference of Wages in Insolvency Proceedings or Upon Death of Employer
12/06/2008 Arizona Wage Payment Law - 23-355. Action By Employee to Recover Wages; Amount of Recovery
12/06/2008 Arizona Wage Payment Law - 23-356 and 23-357. Wage Claims; Investigation of Wage Claims
12/06/2008 Arizona Wage Payment Law - 23-358 to 23-361. Review of Department Determination; Effect of Department Determination; Penalty; Rules and Regulations
12/06/2008 Arizona Wage Payment Law - 23-362. Minimum Wage; Prohibition
 

HR CARE®
MEMBER LOGIN

Username: *

Password: *
Accept terms *
Login failed.
 
copyright 2000 - 2022 Curtis Communications, Inc. All rights reserved. | Access to the HR Care publications is subject to certain terms and conditions.
Learn about our online compliance training at www.hrclassroom.com