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Arizona - Wage Payment Laws - Employment Law Handbook

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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 Wage Payments

An employer may pay wages by
  • cash
  • check
  • direct deposit
Arizona Rev. Stat. 23-353

Direct Deposit

An employer may 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

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 seven (7) 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
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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
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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.
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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.
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Pre-hire Medical, Physical, or Drug Tests

Arizona does not have any laws prohibiting an employer from charging a potential hire from paying for pre-hire medical, physical, or drug tests.
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Notice of Wage Reduction

Arizona does not have any laws addressing when or how an employer may reduce an employee's 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.
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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
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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.
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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.
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