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Payment upon Separation from Employment
Employees who are fired, discharged, terminated, or permanently laid off
When an employer discharges an employee, the employer must pay the employee all
wages due within 3 days of the discharge or by the next regular payday, whichever is
sooner. Arizona Rev. Stat. 23-353
Employees who quit or resign
When an employee voluntarily leaves or quits employment with an employer, the employer
must pay the employee by the next regular pay day. The employee can request the wages
be paid by mail. Arizona Rev. Stat. 23-353
Employees who are suspended or resigns due to a labor dispute (strike)
When an employee voluntarily leaves or quits employment with an employer, the employer
must pay the employee by the next regular pay day. The employee can request the wages
be paid by mail. Arizona Rev. Stat. 23-353
Employees who are temporarily laid off
Arizona does not have any laws specifically addressing the payment of wages to
employees who are laid off. However, because it is the employer who is causing the
separation of employment, it is fair to assume the rule related to payment of discharged
employees would apply. Thus, when an employee is temporarily laid off, the employer
must pay the employee all wages due within 3 days of the discharge or by the next regular
payday, whichever is sooner. Arizona Rev. Stat. 23-353
Wages in Dispute
An employer must pay an employee all wages due that are not in dispute, but may withhold
the disputed amount, including the amount of any counterclaim or any claim of debt,
reimbursement, recoupment or set-off. Arizona Rev. Stat. 23-352
Deductions from Wages
An employer may not withhold or deduct any wages from an employee's paycheck, unless:
1) required or empowered to do so by state or federal law,
2) the employee has consented in writing, or
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.
Arizona Rev. Stat. 23-352
Cash Shortages; Breakage, Damage, or Loss of Property; Dishonored Checks
An employer may deduct wages from an employee's paycheck only with written consent by
the employee for the following:
- cash shortages
- breakage, damage, or loss of the employer's property
- dishonored or returned checks
In accordance with federal law, an employer may not make deductions from an employees
paycheck if it would cause the employee to earn less than federal minimum wage,
including deductions for uniforms, tools, or other items necessary for employment with the
employer. DOL Fact Sheet #16.
Uniforms, Tools, and Other Equipment Necessary for Employment
Arizona has no laws that prohibit an employer from requiring an employee to pay for a
uniform, tools, or other items necessary for employment for the employer. However, an
employee must consent in writing to any deduction from wages to pay for the uniform.
Notice of Wage Reduction
Arizona does not have any laws addressing when or how an employer may reduce an
employees wages or whether an employer must provide employees notice prior to
instituting a wage reduction. However, a wage reduction can only be applied to hours
worked after the change and cannot be applied to hours already worked.
Statement of Wages (Pay Stub)
An employer must provide employee's whose wages are directly deposited a statement of
earnings and withholding for each deposit. Arizona Rev. Stat. 23-351
Record Keeping Requirements
Employers must retain payroll records showing the hours worked for each day worked, and
the wages paid to all employees for a period of 4 years. Failure to do so shall raise a
rebuttable presumption that the employer did not pay the required minimum wage rate.
Arizona Rev. Stat. 23-364
Federal law requires every employer covered by the Fair Labor Standards Act (FLSA) to
keep certain records for each covered, nonexempt worker, for at least 3 years. For more
information, visit FLSA.
Frequency of Wage Payments
An employer must designate two or more days in each month, not more than sixteen days
apart, as fixed paydays. Wages must be paid regular wages within 5 days of the end of the
pay period. Overtime or exception pay must be paid within 16 days of the end of the pay
period. An employer who is paying with cash or check and whose payroll system is
centralized outside of Arizona must pay employees within 10 days of the end of the pay
period.
An employer whose principal place of business is located outside of Arizona and whose
payroll system is centralized outside of Arizona may pay employees monthly who are
exempt from overtime by the Fair Labor Standards Act and supervisors as defined by the
National Labor Relations Act .
Arizona Rev. Stat. 23-351
Manner of Payments
An employer may pay wages by
- cash
- check
- direct deposit
Arizona Rev. Stat. 23-353
Direct Deposit
An employer may on pay an employee by direct deposit if the employee has consented in
writing. If an employer establishes a direct deposit system of wage payment, the
employee must be able to make at minimum one free withdrawal from the account for
each deposit. An employer cannot deny employment to anyone for refusing to consent to
direct deposit. An employer must provide employee's whose wages are directly
deposited a statement of earnings and withholding for each deposit.
Arizona Rev. Stat. 23-351
EmploymentLawHandbook.com
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Your Employment and Labor Law Resource
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Notice Requirements
Arizona does not have any laws requiring employers to provide employees, whether at hire
or at any other time, of notice of wage rates, dates of pay, employment policies, fringe
benefits, or other terms and conditions of employment.
Wage Payment Laws for Private Sector Employers
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Topics Covered:
- Frequency of Wage Payments
- Manner of Payments
- Payment upon Separation from Employment
- Employees who are fired, discharged, or terminated
- Employees who quit or resign
- Employees who is suspended or resigns due to a labor dispute (strike)
- Employees who are laid off
- Wages in Dispute
- Cash shortages
- Damage, loss or destruction of employer property
- Dishonored or returned checks
- Uniforms
- Tools and other items necessary for employment
- Pre-hire medical, physical, or drug tests
- Notice of Wage Reduction
- Statement of Wages (Pay Stub)
- Record Keeping Requirements
- Notice Requirements