In 2022, Arizona’s state minimum wage is $12.80 per hour.

The state tipped minimum wage in 2022 is $9.80 per hour.

Yes, the minimum wage for those work in the city of Flagstaff is $15.50 per hour. The tipped minimum wage is $13 per hour.

In calculating the overtime rate for the tipped employee, the restaurateur must multiply the minimum wage ($12.80 per hour) by 1½ (1.5), subtract the tip credit ($3 per hour), multiply that figure by the number of overtime hours worked, and then add that sum to their 40-hour total. For Flagstaff, the same formula is used with the higher wage.

Neither federal nor Arizona law requires employers to provide lunch breaks or other rest periods to their employees.

Yes, employers can legally pass off the cost of the transaction to their employees. They cannot make the employee pay for more than the cost of the tip’s portion of the transaction.

Yes. Employees who customarily and regularly receive tips may pool, share, or split tips between them.
Where employees pool, share, or split tips, the amount actually retained by each employee is considered
the tip of the employee who retained it.

Earned paid sick time is leave time that is compensated at the same hourly rate (but no less than minimum
wage) and with the same benefits, including health care benefits, that an employee would have received
for the work hours during which earned paid sick time is used.

• Medical care or mental or physical illness, injury, or health condition of the employee or any of the employee’s family members (see the definition of “family member” in Arizona Revised Statutes § 23-371 to see who qualifies as a family member);

• A public health emergency affecting the employee or a family member of the employee pursuant to Arizona Revised Statutes § 23-373; and

• An absence due to domestic violence, sexual violence, abuse, or stalking involving the employee or any of the employee’s family members (see the definition of “family member” in Arizona Revised Statutes § 23-371 to see who qualifies as a family member).

• For employers with 15 or more employees: Employees are entitled to accrue a minimum of one hour of earned paid sick time for every 30 hours worked, but employees are not entitled to accrue or use more than 40 hours of earned paid sick time per year, unless the employer selects a higher limit.

• For employers with fewer than 15 employees: Employees are entitled to accrue a minimum of one hour of earned paid sick time for every 30 hours worked, but they are not entitled to accrue or use more than 24 hours of earned paid sick time per year, unless the employer sets a higher limit.

The Fair Wages and Healthy Families Act’s minimum wage and earned paid sick time provisions apply only to Arizona employees. Therefore, in the absence of further statutory or judicial guidance on the issue, the Industrial Commission will not enforce against an employer who does not count its non-Arizona employees in its total employee count for earned paid sick time purposes.

No. The Fair Wages and Healthy Families Act does not draw a distinction between year-round and partial year employees. An employee’s accrual and usage entitlements are based solely on the size of the employer and are not based upon whether an employee works a full or partial year.

All employees of the original employer still employed by the successor employer are entitled to previously accrued earned paid sick time and are entitled to use that earned paid sick time. The Industrial Commission will follow existing Arizona case law concerning liability assumption in asset-only transactions.

Yes, provided that the paid time off meets or exceeds the requirements of the Fair Wages and Healthy Families Act.

Pursuant to A.R.S. § 23-373(B), a request to use earned paid sick time may be made orally, in writing, by electronic means, or by any other means acceptable to the employer. When possible, the request to use earned paid sick time must include the expected duration of the absence.

When leave is not foreseeable, an employer may require an employee to follow a written policy that contains procedures for the employee to provide notice. An employer that has not provided to the employee a copy of its written policy for providing such notice may not deny earned paid sick time to the employee based on non-compliance with such a policy.

The Fair Wages and Healthy Families Act (the “Act”) states that “earned paid sick time shall be provided upon the request of an employee. Such request may be made orally, in writing, by electronic means or by any other means acceptable to the employer.”

The Act is silent as to whether an employee’s family member, medical provider, friend, or other person may submit a request on the employee’s behalf. Because the Act authorizes the use of earned paid sick time for conditions that may render an employee
unable to make requests, authorized individuals may request earned paid sick time for an employee in appropriate circumstances.

Earned paid sick time can either be used in hourly increments or the smallest increment of time that an employer utilizes, by policy or practice, to account for absences or use of other paid time off, whichever is smaller. See A.A.C. R20-5-1202(26).

For example, if an employer’s payroll system accounts for absences or use of other time in 6 minute increments (a tenth of an hour), an employee may use earned paid sick time in this same increment. If an employer utilizes an increment greater than an hour to account for absences or use of other paid time off, that employer’s employees are still entitled to take earned paid sick time or equivalent paid time off in hourly increments.

Yes, but only if an employee uses earned paid sick time on three or more consecutive work days. Where earned paid sick time is used on three of more consecutive work days, an employer can require reasonable documentation that the earned paid sick time was used for purposes permitted by the Fair Wages and Healthy Families Act.

No. Although an employer can require reasonable documentation of absences of three of more consecutive work days, an employer may not require that an employee specify the relevant health condition or the details of domestic violence, sexual violence, abuse or stalking.

Yes. The Fair Wages and Healthy Families Act (the “Act”) provides that nothing in the Act may be interpreted or applied so as to create a conflict with federal law.

If rehire occurs within nine months of separation from the same employer, any previously-accrued, unused earned paid sick time must be reinstated and the employee is entitled to use and accrue earned paid sick timeimmediately at the re-commencement of employment.

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