Minimum Wage $15.15 / HR
Arizona’s minimum wage is $15.15 per hour in 2026. Covered employers must pay at least that rate for every hour worked.
Arizona’s minimum wage is higher than the federal minimum wage, so covered workers generally receive the Arizona rate unless a narrower exemption applies.
Employers must keep payroll records showing hours worked each day and wages paid. Failure to maintain required records can create a rebuttable presumption that the employer did not pay the required minimum wage or earned paid sick time.
Tipped Employees $12.15 CASH WAGE
Arizona allows employers to pay tipped employees up to $3.00 per hour less than the state minimum wage. In 2026, that makes the tipped cash wage $12.15 per hour.
The employer may take that tip credit only if the employee’s cash wage and tips together reach at least the full $15.15 minimum wage for the workweek.
If tips do not make up the difference, the employer must pay the shortfall. Tip-credit violations can also arise when employers fail to keep proper records, require invalid tip sharing, or let managers or owners take tips.
Overtime Laws 1.5X RATE
Arizona does not have a separate daily overtime rule. Most overtime claims rely on the federal FLSA, which requires one and one-half times the regular rate for hours worked over 40 in a workweek.
At Arizona’s 2026 minimum wage, the minimum overtime rate is $22.73 per hour. If the worker earns more than $15.15 per hour, overtime must be calculated from the worker’s actual regular rate.
The regular rate can include more than base hourly pay. Certain nondiscretionary bonuses, commissions, shift differentials, and incentive payments may need to be included when calculating overtime.
A salary does not automatically eliminate overtime rights. Exemptions depend on actual job duties, salary basis, and salary level.
Earned Paid Sick Time 24-40 HRS
Arizona’s Fair Wages and Healthy Families Act requires earned paid sick time. Employees generally accrue one hour of earned paid sick time for every 30 hours worked.
Employees of employers with 15 or more employees may generally accrue and use up to 40 hours of earned paid sick time per year. Employees of smaller employers may generally accrue and use up to 24 hours per year.
Earned paid sick time can be used for the worker’s own health needs, covered family needs, certain public-health closures, and certain domestic violence, sexual violence, abuse, or stalking related reasons.
Employers cannot retaliate against workers for using or requesting earned paid sick time.
Retaliation Protections 90-DAY RULE
Arizona law protects workers who assert minimum wage or earned paid sick time rights, assist another worker, participate in an investigation, or inform others about their rights.
A major Arizona protection is the 90-day retaliation presumption. If an employer takes adverse action within 90 days after protected activity, the law raises a presumption that the action was retaliatory.
Retaliation can include threats, discharge, suspension, demotion, reduced hours, or other adverse action tied to the worker’s protected activity.
Meal & Rest Breaks NO STATE MANDATE
Arizona does not require ordinary meal or rest breaks for adult employees. Break rights usually come from federal pay rules, employer policy, a contract, or a collective bargaining agreement.
When an employer offers short breaks of about 20 minutes or less, federal law generally treats that time as paid work time. Those minutes count toward total hours worked and can count toward overtime.
Meal periods of 30 minutes or more may be unpaid only when the employee is fully relieved of duty. If the employee keeps working, answers phones, monitors equipment, helps customers, or remains on duty, the time may need to be paid.
Final Pay & Unpaid Wage Claims $12K ICA LIMIT
Arizona has a state administrative process for certain unpaid wage claims. The Industrial Commission of Arizona accepts unpaid wage claims for wages, bonuses, vacation, mileage, insufficient funds checks, and unauthorized deductions.
As of 2026, the ICA unpaid wage claim process is limited to claims of $12,000 or less and generally must be filed within one year from the accrual of the claim.
The ICA unpaid wage claim form may not include overtime wages. Overtime claims generally need to be pursued through the U.S. Department of Labor or through a private civil claim.
Arizona’s minimum wage and earned paid sick time enforcement rules have different remedies and deadlines than the general unpaid wage claim process, so the type of claim matters.
Employee Misclassification COMMON VIOLATION
A 1099 form, contractor agreement, salary label, or manager title does not decide wage rights. The actual working relationship and job duties matter.
Workers may be misclassified as independent contractors when the company controls the schedule, directs how the work is performed, supplies tools, restricts outside work, or relies on the worker as part of its regular business.
Workers may also be misclassified as exempt from overtime when their actual duties do not satisfy the executive, administrative, professional, outside sales, or other exemption rules.
Misclassified workers may be owed unpaid minimum wages, unpaid overtime, earned paid sick time, and other wages depending on the claim.
Filing a Claim 2-3 YEAR WINDOW
Arizona minimum wage and earned paid sick time civil actions generally must be brought within two years after the violation, or three years for willful violations.
FLSA overtime claims also generally have a two-year limitations period, extended to three years for willful violations. General unpaid wage claims filed with the Industrial Commission have a shorter one-year administrative filing deadline.
Workers should gather pay stubs, schedules, time records, sick-time records, tip records, wage notices, deduction records, texts, emails, and notes about unpaid work or retaliation.
This article is provided for informational and educational purposes only and does not constitute legal advice. Reading this content does not create an attorney-client relationship with Josephson Dunlap LLP. Wage and hour laws vary by state, and the application of these laws depends on the specific facts of each situation. The figures and information cited above are current as of the date of publication and are subject to change. Prior results in other matters do not guarantee or predict a similar outcome in any future matter. If you believe your wages were not paid correctly, consult a qualified, licensed employment attorney.
Think You May Be Owed Back Wages?
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