Unpaid Minimum Wage

Unfortunately, some employers attempt to avoid paying workers the minimum wage through deceptive or illegal tactics. This might include off-the-clock work, improper deductions, or misclassifying workers as independent contractors or exempt employees. These practices are unethical and illegal under both Arizona’s Minimum Wage Act and federal law.

Our employment attorneys have successfully litigated numerous cases involving minimum wage violations in Arizona and know how to recognize the tactics employers use to conceal unpaid wages.

Common Minimum Wage Violations

Our legal team has handled cases involving a range of minimum wage violations, including:

• Paying below the minimum wage rate: Directly paying an hourly rate lower than the state-mandated minimum.

• Off-the-clock work: Failing to pay for time worked before, after, or outside scheduled shifts that causes employees total compensation to be less than the minimum wage.

• Unauthorized wage deductions: Deducting the cost of uniforms, equipment, or supplies, bringing the employee’s hourly pay below the minimum wage.

• Misclassification of employees: Labeling workers as independent contractors or exempt when they are employees entitled to minimum wage protections.

• Unpaid mandatory training time: Failing to pay minimum wage for required orientation, training, or certification programs.

• Illegal meal and rest break policies: Requiring employees to perform work-related tasks during unpaid breaks, reducing their total compensated hours below the minimum wage threshold.

• Tip credit abuse: Underpaying tipped employees by failing to meet the minimum wage requirements after factoring in tips and cash wages or utilizing a tip pool that does not meet the legal requirements that would allow for the employer to take a lawful tip credit.

Examples of Minimum Wage Violations We Handle

Our attorneys can represent Arizona workers across industries who face minimum wage violations, such as:

• Retail employees: Required to clock out but continue working through closing duties without pay.

• Call center workers: Made to log into systems before clocking in and remain logged in after clocking out.  Spending time booting up systems when not clocked in.

• Fast food workers: Whose paychecks reflected minimum wage rates, but worked unpaid prep or cleaning shifts before their scheduled hours.

• Healthcare aides: Whose uniform and supply deductions dropped their pay below the legal hourly minimum.

• Warehouse and delivery drivers: Classified as independent contractors, despite being economically dependent on a single employer and therefore entitled to minimum wage.

• Employees required to attend unpaid mandatory safety or product knowledge training sessions.

How Our Attorneys Can Help You

At Frankel Syverson PLLC, we offer guidance through the legal process of recovering unpaid wages:

• Initial Consultation: We evaluate your specific situation and explain your legal options regarding unpaid minimum wage.

• Documentation Review: We help assess your employment records, pay stubs, and other relevant documentation.

• Legal Representation: Our attorneys handle the legal aspects of your wage claim, from filing necessary paperwork to representing you throughout the process.

• Pursuing Available Remedies: We seek all legally available remedies, which may include unpaid wages and potential liquidated damages in certain cases.

Understanding Your Legal Options

Under Arizona and federal labor laws:

• Employees must be paid no less than the minimum wage for all hours worked.

• Mandatory deductions cannot reduce wages below the legal minimum.

• Workers misclassified as independent contractors or exempt are still entitled to minimum wage.

• Tipped employees must receive combined tips and wages that equal at least the minimum wage; otherwise, the employer must make up the difference.

• The law requires employers who violate minimum wage laws to pay the employee’s legal fees and costs if the worker prevails in a claim.

If you suspect your employer has paid you below the minimum wage, it is critical to act quickly. Arizona law provides strict deadlines for wage claims, and waiting too long may affect your right to recover unpaid wages.

Frequently Asked Questions (FAQs)

What is the minimum wage in Arizona in 2025?

As of January 1, 2025, the Arizona minimum wage is $14.70 per hour and is subject to annual cost-of-living increases.

If I am paid minimum wage but work off-the-clock, does that violate the law?

Yes. If your employer requires you to work unrecorded time, your total wages divided by total hours worked may fall below the minimum wage, violating Arizona’s Minimum Wage Act and the FLSA.

Can my employer deduct money for uniforms or equipment if it reduces my hourly pay below the minimum wage?

No. Employers may not make deductions for uniforms, equipment, or other job-related expenses that bring an employee’s pay below the state minimum wage.

Does Arizona have different minimum wage rates for tipped employees?

Yes. In Arizona, employers may take a tip credit of up to $3.00 per hour, but the total of tips and cash wages must still meet or exceed the $14.70 hourly minimum wage as of 2025.  Employers must also follow strict notice requirements when using a tip credit and only certain employees customarily and regularly receiving tips should be part of a tip pool for it to be lawful, and this impacts an employee’s minimum wage rights as well.

What should I do if I believe I’m being paid less than minimum wage?

It could be helpful to document your hours worked, pay rates, and any deductions. However, you are not required to have documents to prove your claims.  It would therefore be good to consult with an experienced Arizona employment attorney to evaluate your case and legal options.

Can my employer fire me for filing a minimum wage claim?

No. Both Arizona law and federal labor laws prohibit retaliation against employees who assert their rights to minimum wage.