Arizona Overtime Fundamentals
As a general rule, Arizona overtime laws apply when an employee works more than 40 hours in a single workweek. Arizona, however, also has a daily overtime law that requires payment of Arizona overtime if an employee works more than eight hours in a single workday. More specifically, Arizona overtime laws state that:
(a) No employer shall employ any of its employees for a work period of longer than forty hours per week unless such employee receives compensation for his employment in excess of the hours in such work period at a rate not less than one and one-half time the employee’s regular rate.
(b) No employer shall pay any of its employees a wage rate less than the rate paid in other employment in the establishment for equal work on jobs the performance of which requires equal skill, effort and responsibility except where such payment is made pursuant to a seniority or merit system or a system that measures earnings by quantity or quality of production or any combination thereof.
(c) No employer shall be prohibited from paying a wage rate to an employee at a rate higher than the wage rate specified in subsection A of this section.
(d) Employee shall not be deprived of any right he may have to compensation under any existing or future collective bargaining agreement , and local law enforcement agencies are authorized to enforce such agreements.
(e) Nothing in this section shall affect any other provisions of the law regulating the hours of work of employees, nor apply to any employee of the United States of America or any state or political subdivision of any state, including any county, city, town, school district or other governmental entity, nor shall it apply to an individual employed in domestic service about a private residence, nor to employees for which the federal government has obtained a waiver pursuant to 29 U.S.C. § 213.
A.R.S. § 23-392 (emphasis added).
In addition to the above general overtime principles, Arizona has two laws that set a 10 hour day for some workers and require payment of daily overtime under some circumstances (A.R.S. § 23-233 and ARS § 23-230.1). For example, ARS § 23-233 states in relevant part that:
A. Except for an employee who in any workweek is employed for a regular work day of nine or more hours and whose work day exceeds ten hours or for an employee whose work week is 40 hours, no employer shall require any employee to work:
- More than the number of hours specified in the original agreement or the modified agreement during a workday.
- Any additional hours in any workday without compensation.
- More than five days in a seven-day work period.
Does Arizona Law Require Overtime Pay After 8 hours?
Under the Fair Labor Standards Act (FLSA), employees are due at least one and a half times their regular rate for a workweek of 40 hours. However, employers in Arizona or state-specific law may choose to set a daily overtime threshold that is less than 40 hours. As long as their policy still meets or exceeds the FLSA minimum requirements, there is no reason it should not be acceptable.
That said, however, when working beyond eight hours in one day an employee may want to confirm if their employer’s policy is acceptable.
Yes. Arizona law stipulates that all employers that employ one or more employees in the state must pay them overtime for each hour worked after eight in a given day.
For example, an employee who works two extra hours on top of a 10-hour workday can expect to receive two hours of overtime pay for that day. Unless your employer offers more, that is.
As with any other employment classification, there are always some exceptions to the rule that could apply. The exception to Arizona’s daily overtime rule is for those working on "fire protection or law enforcement activities." This includes first responders as well as personnel working for the Federal Aviation Administration (FAA). These employees perform essential services and as such do not have the same safety concerns and cannot receive compensatory time for overtime.
Federal vs Arizona Overtime Pay Laws
In most circumstances, federal overtime laws are the foundational touchstone for employers attempting to determine applicable pay rules. The Fair Labor Standards Act (FLSA) sets out overtime requirements that cover all 50 states, territories, and Washington, D.C. However, states are free to legislate workplace standards that provide greater protection than federal law, and Arizona overtime laws fall into this category.
Under the FLSA, overtime is due after 40 hours worked in a single workweek; however, Arizona overtime laws require payment of overtime after eight hours worked in a single workday. This point is an important one, as it is not uncommon for employers to assume that federal overtime rules apply in every state without exception. In fact, though, when state law overtime requirements differ from the FLSA, the law providing the most protection to employees is the one that must be followed. Therefore, Arizona employers may not utilize the 40-hour workweek standard — the 40-hour standard only applies when Arizona’s more employee-friendly rule on daily overtime does not apply.
There are exceptions to the general provisions discussed above. Any employee exempt from FLSA overtime requirements is also exempt from the state overtime requirements. So overtime paid to exempt employees provides employers with no advantage, as they will not need to pay overtime under either standard.
Arizona overtime laws were established to provide additional protection for workers; but employers are also protected by the laws, as they set out rigid requirements regarding compensation such as:
Employees’ Rights Under Arizona’s Overtime requirements
Employees in Arizona have the right to be paid overtime after working more than 40 hours in a single workweek, unless they are exempt. For most employees, overtime compensation is paid at the rate of time and a half their regular pay rate. If employees work a split or "split" week, then overtime is paid at the time and a half rate once employees cross 40 hours in the combined workweek . Employees are not permitted to volunteer for overtime work under Arizona law, which is intended to serve as a work around for overtime pay. Arizona employers who violate overtime requirements can be liable for unpaid wages, liquidated (or double) damages, attorneys’ fees and court costs.
How Employers Should Address Overtime Pay
Employers have the responsibility to identify and address overtime work properly. For federal regulations, employers are required to keep a single set of time records for all hours worked by employees and to pay for all overtime and time and one-half within the designated pay periods. Records of hours worked by an employee must be kept at the site of employment.
For record keeping purposes, 29 C.F.R. 785.42 specifies that employers may not require employees to clock in or out to support claims that they did not work when their actual hours of work and the employees’ statements of their hours are not in dispute. Nonetheless, the employer must maintain the records in some other way both to avoid liability for unpaid hours of work. It would be prudent to keep written or electronic records regarding all hours worked. If there is any question as to whether an employee has worked overtime, the employer must at least make inquiry.
Some precautions and best practice rules that an employer should follow with regard to timekeeping and overtime pay include: 1) review pay practices to determine whether employees who work overtime are all paid for the additional hours per period; 2) review payroll records and determine whether the additional dollars paid per period are appropriate given the hours of overtime; 3) determine whether hours claimed to be worked per week are consistent with those claimed in past periods. 4) if there is an inconsistency, verify with the employee. 5) Confirm that: a) adequate supervision (such as timeclock supervision) exists, b) the policy dealing with overtime is clear to the employees, and c) it is enforced uniformly. 6) Use only those methods of timekeeping that are readily available and essentially infallible (not those that benefit employees such as a clock that always seems to run slow). 7) Do not give employees the ability to alter time records. 8) Always meet any deadlines imposed by the employer for reporting hours of work. 9) Never approve an inadequate explanation of tardiness. 10) Never modify a date that is already entered into the employer’s records.
If a mistake has occurred, an employer should never correct the error by subtracting from the employee’s paycheck on the next pay day. Instead, the employer should reimburse the employee the amount that was underpaid, preferably by direct deposit.
Legal Recourse for Overtime Claims under Arizona Law
If an employee believes that the employer has not paid him or her proper overtime wages, the employee may file a complaint with the United States Department of Labor’s Wage and Hour Division, as well as the Arizona Industrial Commission. Alternatively, the employee may file a lawsuit against the employer directly in federal or state court.
Whichever forum is chosen to resolve the dispute, the employee must first exhaust administrative remedies by filing a formal complaint with the United States Department of Labor. The Department of Labor will then conduct an investigation. If the employee is already involved in litigation, however, the Department of Labor will usually decline to intervene. If, after the investigation, the Department of Labor believes that there is merit to the complaint, it will attempt to negotiate a settlement on behalf of the employee and the employer. Where, after investigation, the Department of Labor has determined that the employer was not in compliance with the FLSA, the Department of Labor must bring its own action unless the aggrieved employee files an action in federal or state court. Once a complaint is filed with the Department of Labor, the Fair Labor Standards Act (FLSA) , as well as Arizona law, prohibits employers from retaliating against an employee who filed a complaint or participated in any investigation or proceeding arising out of such a complaint. Specifically, the FLSA prohibits discrimination or retaliation against any employee ". . . by reason of any complaint by such employee to his employer, to the Secretary, or to the Attorney General, that he has not been paid" in accordance with the requirements of the FLSA, including the overtime requirements. 29 U.S.C. §215(a)(3). If, after the investigation, there is a reasonable cause to believe that an employer has violated the FLSA, the Department of Labor may either bring a civil action to enjoin the wrongful act, or recover both back wages and an equal amount in liquidated damages, or both, for the benefit of the affected employees. 29 U.S.C. §216. Notably, such an employee may be awarded costs and a reasonable attorney’s fee against the employer. 29 U.S.C. §216(b) and A.R.S. §23-364. Similarly, an employee bringing a private action under Arizona law may recover wages not paid as required by law together with interest at the legal rate, court costs, and a reasonable attorney fee, in an amount fixed by the Court.
