Arizona Employee Time Report (Nonexempt)
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FAQ
Enacted in 2007, the Arizona Minimum Wage Act, A.R.S. § 23-364, requires employees be paid at least minimum wage for ALL hours worked. Neither state nor federal wage laws can be waived. An employee cannot opt out of these requirements.
Nonexempt vs. Exempt employees are paid on a salary basis and are excluded from overtime payment. Nonexempt employees who are paid hourly must report hours worked and are paid overtime for each hour worked over 40 hours per week.
Executives, administrators, and other professionals earning at least $455 per week do not have to be paid overtime under Section 13(a)(1) of the Fair Labor Standards Act. External salespeople (who often set their own hours) are also exempted from AZ overtime requirements, as are some types of computer-related workers.
An exempt employee is not entitled to overtime pay according to the Fair Labor Standards Act (FLSA). To be exempt, you must earn a minimum of $684 per week in the form of a salary. Non-exempt employees must be paid overtime and are protected by FLSA regulations.
The current Arizona minimum wage of $12.80 per hour is the lowest amount a non-exempt employee in Arizona can legally be paid for hourly work. Special minimum wage rates, such as the "Arizona waitress minimum wage" for tipped employees, may apply to certain workers.
Arizona does not have a specific overtime law. Instead it follows federal labor laws contained in the Fair Labor Standards Act (FLSA). Under FLSA, employers are required to pay non-exempt employees overtime pay for any hours worked beyond 40 in a workweek.
Nonexempt: An individual who is not exempt from the overtime provisions of the FLSA and is therefore entitled to overtime pay for all hours worked beyond 40 in a workweek (as well as any state overtime provisions). Nonexempt employees may be paid on a salary, hourly or other basis.
Summary. Arizona law prohibits an employer from discriminating and retaliating against employees in a variety of protected classes. Employers must also provide equal pay and protect whistleblowers. See EEO, Diversity and Employee Relations.
Arizona follows the Federal law. Employers must pay all non-exempt employees overtime pay for all hours worked in excess of 40 in a workweek at one and a half the employee's regular wage.
The primary difference in status between exempt and non-exempt employees is their eligibility for overtime. Under federal law, that status is determined by the Fair Labor Standards Act (FLSA). Exempt employees are not entitled to overtime, while non-exempt employees are.
