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Arizona Wage and Hour Laws: Minimum Wage, Overtime, and Pay Guide

Quick Answer: Arizona’s minimum wage is $14.70/hour (2025)—significantly higher than federal $7.25. Tipped workers can be paid $11.70/hour plus tips. Overtime follows federal FLSA (1.5x after 40 hours). Arizona also requires paid sick leave. File wage complaints with the Industrial Commission of Arizona.

Arizona provides strong wage protections above federal minimums.

Arizona Wage Overview

Key Wage Laws

Arizona Minimum Wage Act:

  • State minimum wage (Prop 206)
  • Annual adjustments for inflation
  • Higher than federal

Wage Payment Act:

  • Final paycheck timing
  • Pay frequency requirements
  • Enforcement mechanisms

Compared to Federal

Feature Arizona Federal
Minimum wage $14.70/hour $7.25/hour
Tipped wage $11.70/hour $2.13/hour
Overtime FLSA applies 1.5x after 40 hrs
Paid sick leave Required Not required

Arizona Minimum Wage

2025 Rate

Standard: $14.70/hour

Tipped workers: $11.70/hour (plus tips to reach $14.70)

Annual increases: Adjusted for inflation each year

Who’s Covered

Most employees:

  • Private sector workers
  • Limited exemptions
  • Includes part-time workers

Exemptions

May be exempt:

  • Some small businesses (limited)
  • State/federal minimum wage exemptions
  • Specific categories

Tipped Worker Wages

Tip Credit System

How it works:

  • Pay $11.70/hour cash wage
  • Tips must bring total to $14.70
  • Employer makes up shortfall
  • $3.00 maximum tip credit

Better Than Federal

Arizona advantage:

  • Higher base wage ($11.70 vs $2.13 federal)
  • Better tipped worker protection
  • Inflation adjustments

Arizona Overtime Laws

Federal FLSA Applies

No state overtime law:

  • Arizona follows federal FLSA
  • 1.5x after 40 hours/week
  • No daily overtime requirement

Who Gets Overtime

Non-exempt employees:

  • Hourly workers
  • Most salaried under threshold
  • Manual laborers

Exemptions

May be exempt:

  • Executive employees
  • Administrative employees
  • Professional employees
  • Outside salespeople

Paid Sick Leave (Prop 206)

Requirements

All employers must provide:

  • 1 hour per 30 hours worked
  • Small employers (15 or fewer): Up to 24 hours/year
  • Large employers (15+): Up to 40 hours/year

Covered Uses

Sick leave for:

  • Employee illness
  • Family member care
  • Domestic violence situations
  • Public health emergencies

Accrual and Carryover

Rules:

  • Begin accruing at hire
  • Usable after 90 days
  • Carryover allowed
  • Cannot be paid out

Final Paychecks

Timing Rules

Arizona requires:

  • Fired employees: Within 7 working days or next payday (whichever sooner)
  • Quit with notice: Next regular payday
  • Quit without notice: Next regular payday

What’s Included

Must include:

  • All wages earned
  • Accrued vacation (if policy requires)
  • Commissions earned

Recovering Unpaid Wages

Industrial Commission of Arizona

File complaint:

  • Labor Department
  • Phone: 602-542-4515
  • Online filing available

Federal Department of Labor

Also available:

  • Phone: 1-866-487-9243
  • Phoenix: 602-514-7100
  • FLSA violations

Private Lawsuit

Court options:

  • Small claims court
  • Superior court (larger claims)
  • May recover damages

Statute of Limitations

Time limits:

  • Arizona wage claims: Generally 1-3 years
  • FLSA claims: 2-3 years
  • Act promptly

Meal and Rest Breaks

No State Requirement

Arizona does not require:

  • Meal breaks for adults
  • Rest breaks for adults
  • At employer discretion

If Breaks Provided

Federal rules apply:

  • Breaks under 20 minutes = paid
  • Meal breaks (30+) may be unpaid
  • Must be duty-free

Pay Frequency

Arizona Requirements

Employers must:

  • Pay at least twice per month
  • On regular schedule
  • Within 5 days of pay period

Common Scenarios

Scenario 1: Paid Below Minimum

Situation: Employer paying $12/hour.

Analysis: Violation. Arizona minimum is $14.70. File wage complaint.

Scenario 2: Tipped Below Minimum

Situation: Cash wage $8/hour, tips don’t reach $14.70.

Analysis: Employer must make up difference. Should receive at least $14.70 total.

Scenario 3: No Sick Leave

Situation: Employer doesn’t provide sick leave.

Analysis: Violation of Prop 206. All Arizona employers must provide.

Scenario 4: Late Final Paycheck

Situation: Fired, haven’t received pay after 10 days.

Analysis: Violation. Should be paid within 7 working days or next payday.

Scenario 5: Unpaid Overtime

Situation: Work 50 hours, paid straight time.

Analysis: Should get 1.5x for 10 overtime hours. File FLSA complaint.

Frequently Asked Questions

What is Arizona’s minimum wage?

$14.70/hour in 2025, significantly higher than federal $7.25.

Does Arizona require paid sick leave?

Yes. Prop 206 requires all employers to provide accrued paid sick leave.

Does Arizona have its own overtime law?

No. Arizona follows federal FLSA for overtime.

When do I get my final paycheck?

Within 7 working days of termination or next regular payday, whichever is sooner.

How do I file a wage complaint?

Contact the Industrial Commission of Arizona at 602-542-4515.

Related Topics

Take Action

If you have wage concerns:

  1. Calculate what you’re owed
  2. Gather pay stubs and records
  3. Document hours worked
  4. Contact Industrial Commission
  5. Consider consulting attorney

Legal Disclaimer

This article provides general information about Arizona wage and hour laws and is not legal advice. For specific advice, consult a licensed Arizona employment attorney.

For official information: