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Arizona Overtime Laws

Arizona Overtime Laws

Arizona Overtime Laws: A Comprehensive Guide

Overtime laws exist to ensure that employees are fairly compensated for any additional time spent working beyond their regular hours. In Arizona, overtime laws apply to both hourly and salaried employees, and understanding these laws is essential for employers and employees alike. This article will provide a detailed overview of Arizona overtime laws, including the requirements for overtime pay, exemptions, and other pertinent information.

What is Arizona Overtime Law?

Arizona’s minimum wage and overtime laws are intended to provide workers in the state with a fair wage for their labor. The law requires employers to compensate their employees for all hours worked, including those worked over the standard 40-hour workweek. Under Arizona law, non-exempt employees are entitled to receive overtime pay at a rate of one and a half times their regular hourly rate for all hours worked over 40 in a workweek.

Who is Covered by Arizona Overtime Law?

The Arizona overtime law pertains to individuals who work in the state as employees of any entity, whether for profit or not. This includes full-time and part-time employees. Independent contractors, volunteers, and interns are not covered by Arizona’s overtime law. However, even if someone is classified as an independent contractor, they may still be considered an employee under current Arizona laws if they are economically dependent on their employer.

Calculating Overtime Pay in Arizona

In Arizona, overtime pay is calculated at a rate of one and a half times the employee’s regular hourly rate for all hours worked over 40 in a workweek. This rate applies regardless of whether the employee is paid hourly or by salary.

It is important to note that an Arizona workweek is defined as any seven consecutive 24-hour periods that the employer selects. For example, an employer may choose to define a workweek from Monday through Sunday, or from Thursday through Wednesday.

Overtime Exemptions in Arizona

Certain jobs or workers may be exempt from Arizona overtime law requirements, meaning they are not entitled to receive overtime pay.

Some of the most common exemptions include:

– Executive, administrative, and professional employees who earn more than $684 per week ($35,568 annually)
– Some commissioned retail or service employees who earn at least 1.5 times the minimum wage for all hours worked
– Truck drivers who are subject to the U.S. Department of Transportation’s hours of service rules
– Certain agricultural workers
– Live-in domestic employees who receive room and board in addition to their wages

It is important for employees and employers to understand which employees may be exempt from overtime laws in Arizona. Misclassification of employees can result in legal action taken by employees which can lead to costly consequences for individuals and companies alike.

Overtime Pay for Salaried Employees in Arizona

Salaried employees in Arizona may also be entitled to overtime pay for hours worked beyond 40 in a workweek. However, the calculation of overtime pay for salaried employees may be different from that of hourly employees.

The Arizona overtime pay requirement for salaried employees applies only to those who earn less than $684 per week ($35,568 annually) and meet the criteria for a non-exempt employee. Salaried non-exempt employees must receive overtime pay at a rate of one and a half times their hourly wage rate, which is calculated based on a formula that considers the employee’s salary.

The formula for calculating the hourly wage rate for salaried non-exempt employees is as follows:

(Salary ÷ 52 weeks) ÷ 40 hours = hourly wage rate

For example, if an employee earns a salary of $35,000 per year ($673.08 per week), their hourly wage rate would be calculated as follows:

($35,000 ÷ 52 weeks) ÷ 40 hours = $16.83 hourly wage rate

If this employee worked 45 hours in a workweek, they would receive overtime pay for the five additional hours at a rate of one and a half times their hourly wage rate ($16.83 x 1.5 = $25.25).

Even if an employee is exempt from Arizona overtime requirements, they may still be entitled to overtime pay under federal law.

Enforcement of Arizona Overtime Law

The Arizona Department of Labor and Industrial Relations (DLIR) enforces the state’s overtime laws. Employees who believe their employer has violated Arizona overtime laws may file a wage claim with the DLIR. The DLIR investigates claims and seeks to resolve disputes between employees and employers.

Penalties and HR Risks of Violating Arizona Overtime Law

Employers in Arizona who violate overtime laws may be subject to penalties and potential legal action. The penalties for violating Arizona overtime laws may include fines, legal fees, and mandatory payment of back wages and benefits owed to employees.

In addition to the financial impact of violating overtime laws, companies may also face reputational damage and a loss of employee morale. Employees who feel they have been unfairly compensated for their work may file legal claims against their employer, which can hurt the company’s reputation and harm relationships with employees.

Conclusion

Overall, it is essential for employees and employers in Arizona to understand the state’s overtime laws in order to ensure fair and legal compensation practices. Failure to comply with Arizona overtime laws can have serious legal and financial consequences. By following these rules, employers can avoid costly penalties and legal action, while employees can ensure they are receiving fair wages for their work.


There are no AZ overtime laws and rather, all overtime laws are based on the federal Fair Labor Standards Act, which sets the typical overtime rate and 1.5 the hourly wage for over forty hours worked in a week.  Complaints about overtime pay are made directly to the Department of Labor for investigation, though civil litigation is also an issue to contend with.

Are there limitations within Arizona overtime laws?

There is no daily limit on the amount of overtime hours an employee can work in a day, as long as they are compensated with time and a half after they exceed forty hours worked that week.  These AZ overtime laws are consist with federal laws for overtime

Who are exempted from AZ overtime laws?

Salespersons are not paid based on Arizona overtime laws due to the fact that they largely set their own hours.  Executives and professionals that make more than $455 a week are also not paid overtime hours, and this is a provision in the federal FLSA.

Live in workers are not eligible for overtime and a number of agricultural workers are also not subject to the same provisions under Arizona overtime law.

Employees in essential services, including emergency services and transportation workers have special provisions for overtime pay and should consult their employment or collective bargaining agreement for more information on specific provisions related to their overtime work under AZ overtime laws.

There is no exact listing of employment that is exempt from Arizona overtime laws and federal regulation.  Factors that are considered in determining overtime eligibility include pay rate, skill level and the nature of the workplace.  There are standards to qualify jobs as outside sales, administrative, executive and professional and the Arizona overtime laws will correspond to these positions in terms of compensation and obligations, if any.

Are independent contractors covered by AZ overtime laws?

Independent contractors are not paid by Arizona overtime laws by the entities that hire them for work, though they will have to pay their own employees overtimes, in accordance with Arizona overtime laws.  Independent contractors are not considered legal employees under both state and federal law.  The contractors themselves however, might have to pay their employees according to AZ overtime law, except in a few limited circumstances involving family members as employees.

Do my breaks count for overtime pay under AZ overtime laws?

Meal breaks lasting more than 30 minutes are not considered eligible for pay or consideration for overtime pay.  Generally, these breaks allow the employee to leave the premises.  Though there is no state or federal mandate for it, break periods are allowed, typically no more than 20 minutes long.  These breaks count towards the hours worked in any overtime determination under federal and Arizona overtime law.

Working on-call as part of overtime pay under AZ overtime laws

Arizona overtime laws will count time spent on-call as part of your overtime pay as long as you are required to spend that time on-call on the premises of the workplace.  Those that are allowed to leave the premises yet are still on-call will not be eligible.  There might be other provisions depending on the type of employee, such as medical student, that might not count time spent on-call as part of an overtime determination un Arizona  overtime law.

What do I do if I have an employer disputer under Arizona overtime law?

If you have an issue requiring resolution under Arizona overtime law, seek out an Arizona overtime law attorney.  These Arizona overtime law attorneys will help you to secure damages against an employer, determine if you should ask for restoration of position, back wages and other rights to compensation and employment under Arizona overtime law.