Labor Laws for Salaried Emloyees in Arizona

The minimum wage is set to increase in Arizona on January 1, 2011.
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The federal Fair Labor Standards Act created minimum uniform protections for all salaried employees in the United States. Under the Fair Labor Standards Act, all employees are guaranteed a minimum wage and overtime, with some exceptions. Arizona's labor laws are similar to the federal laws and also provide added protections.

Minimum Wage

In Arizona, all salaried employees must be paid a minimum wage of $7.25 per hour, the same as the federal minimum. Additionally, under Arizona law, minors and salaried employees undergoing training cannot be compensated at a lower wage, with one exception: an employer can give a $3.00 tip credit to employees working for tips, such as those in the waitstaff industry. However, employees working for tips must make at least $4.25 per hour. Additionally, employers are obligated to pay salaried employees for all hours worked, unless they qualify as exempt from overtime.

Read More: What is the Federal Minimum Wage?

Overtime

Under Arizona state law and federal law, all salaried employees are entitled to overtime, which is equal to one and a half times the employees' regular hourly rate, with some exceptions. Salaried employees who are not primarily employed in a manual labor capacity, such as managers, administrators, executives and other professionals, and who also earn at least $455 per week on salary may be exempt from state and federal overtime requirements.

Other Protections

Arizona law requires that all employers designate two recurring days each month that salaried employees will be paid. There can be no more than 16 days between paydays. Additionally, if a payday falls on a holiday, employers must pay on that day or beforehand. Employers are also required to pay all wages owed to employees for each pay period.

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