Overtime Payments in Arizona: A Guide to Employee Rights & Rates
Have you ever wondered if you’re truly getting paid what you deserve for those extra hours? Knowing overtime law applicable to employees in Arizona could make a difference.
In Arizona, just like in other states, specific rules apply to how employees should be compensated for the extra hours they work.
So, what do you need to know about overtime payments for employees in Arizona? Keep reading to find out all the information you might need.
Understanding Overtime Payment for Employees in Arizona
What is overtime payment?
Overtime pay is additional compensation for hours worked over 40 in a workweek. Overtime in Arizona is governed by the federal Fair Labor Standards Act (FLSA) to establish overtime requirements for employees in the State. Employees are entitled to overtime pay for any hours worked beyond this threshold.
Overtime is compensated at a rate of 1.5 times the employee's regular hourly wage. For example, if an employee in Arizona is paid the minimum wage of $14.35 per hour, the overtime wage would be $21.53 per hour.
Employees must be paid at the overtime rate for hours worked over forty in a workweek.
Who is eligible for overtime pay?
Employees classified as “non-exempt” under the FLSA are eligible for overtime in Arizona.
Certain employees are exempt from receiving overtime pay. These typically include:
Exempt, Salaried Employees: Those earning more than $844 per week ($43,888 annually) may be exempt if they perform executive, administrative, or professional duties. The executive (manager), administrative, and professional exemptions are very fact-specific regarding the duties performed by the employee, and what matters are the actual duties the employee performs, not simply what is written in a job description.
Specific Occupations: Many other exemptions may apply to whether an employee is entitled to overtime. However, most workers in the United States are entitled to overtime. If you have questions about whether you should be earning overtime if you work more than forty hours in a workweek, it’s good to talk with a lawyer about your rights and see if you should be getting paid time and a half.
How is overtime calculated?
Overtime pay calculation in Arizona follows the basic formula mandated by federal law:
Overtime Pay = 1.5x regular hourly rate X Hours Worked Over 40 in a Week.
You can use the following. example as a guidance:
Regular Rate: $15/hour
Overtime Hours that were not paid: 5 hours
Overtime Pay: $22.50 x 5 = $112.50
Industries With Frequent Overtime in Arizona
Healthcare
Nature of Work: Hospitals and healthcare facilities often have shifts that extend beyond scheduled hours due to patient needs.
Common Roles: Medical Assistants, caregivers, and other medical support staff may regularly work overtime to ensure adequate patient care.
Call Centers
Nature of Work: Perform customer service or sales at a call center location. Call center employees are often clocked in once they start taking calls. However, they are frequently required to perform duties getting ready for their shifts before they clock in or finish with a caller after their shift has concluded, resulting in unpaid overtime.
Common Roles: Customer Service Representatives or Sales Representatives.
Transportation
Nature of Work: Drivers often are transporting passengers and may have downtime or on-call time that is uncompensated. In many instances, during this so-called downtime or on-call time, they are still working by completing manifests, taking calls from dispatch, or they are so restricted in what they can do during that time that they are effectively working. If that is the case, the driver should speak with al lawyer about whether they should be compensated for downtime or on-call time.
Common Roles: Delivery drivers, medical transport drivers, and other drivers may be required to work periods when they are not clocked in, resulting in unpaid overtime.
Overtime Laws in Arizona
Arizona Minimum Wage and Its Impact on Overtime
Arizona's minimum wage laws directly influence how overtime is calculated for lower-wage workers. Arizona's minimum wage is higher than the federal level, which is $14.35 per hour as of 2024.
If you are a minimum-wage worker and you qualify for overtime, your overtime pay is calculated based on this state wage—meaning it will be time and a half $14.35 that you are due for hours worked over forty in a workweek.
Common Overtime Violations in Arizona
Unfortunately, overtime violations do occur, and some of the most common include:
Misclassifying employees as exempt to avoid paying overtime.
Not calculating overtime correctly by underreporting hours.
Miscalculating overtime by failing to account for non-discretionary bonuses or other incentive payments or shift premiums in the overtime rate.
Denying overtime pay to eligible workers by manipulating work schedules.
Requiring overtime-eligible employees to complete work off the clock.
Giving an employee a title that makes it sound like they are exempt from overtime when the law actually considers what their job duties are when considering whether they are exempt from overtime.
Assuming because someone is paid a salary they are not entitled to overtime. It also matters whether their job duties are exempt in nature.
Employees who experience these violations can take legal action to reclaim their unpaid overtime.
Employee Rights: What To Do If Overtime is Denied
Being denied fair pay for your hard work? You’re not alone. But you don’t have to settle for less than what you’ve earned. And we are here to help you.
Fortunately, federal law applicable in Arizona has protections in place for employees like you. Here’s what to do if you feel you’ve been wronged:
Generally, it is best to contact a lawyer. While employees can contact the Department of Labor regarding unpaid overtime, they may not get you all the overtime and penalties you are due. A lawyer can help you evaluate whether you are due unpaid overtime, and if so, talk to you about how much you may be able to recover. In addition, the FLSA requires employers who violate the overtime statute to pay for the employee’s reasonable attorneys’ fees and costs. So, it is often possible to pursue your overtime rights by hiring a lawyer at no out-of-pocket cost to you.
Remember: You deserve fair compensation for your time and effort. Don’t hesitate to stand up for your rights!
Consequences for Employers Who Don’t Pay Overtime
Failing to pay employees overtime can result in serious legal consequences for employers in Arizona. These penalties can include:
Payment of back wages.
Liquidated (double) damages for willful violations
Attorney’s fees and costs for pursuing legal action paid for by employers who violate the overtime law.
Understanding the overtime payment law applicable in Arizona is essential for both employees and employers. While Arizona adheres to federal standards, there are specific nuances that every worker should be aware of, especially regarding eligibility, exemptions, and the state’s minimum wage laws.
Staying informed about Arizona’s overtime laws empowers you to make sure your hard work is fairly recognized. Whether you’re clocking in extra hours or staying late on the phone, don’t hesitate to demand what you’re legally owed.
If you believe you’re owed overtime or need help navigating these laws, don’t wait! Contact us to ensure you’re fully compensated for your hard work.