How Much is Overtime Pay in Arizona?

how much is overtime payThe question about overtime pay affects both employers and employees in Arizona. Should you be getting additional payment for your overtime work? As an employer, when should you be prepared for such additional expenditure? Arizona, just like other states, follows the Fair Labor Standards Act (FLSA) that determines the amount of overtime pay and the conditions in which such payments apply.

Overtime Pay Basics

FLSA is a federal law that governs the right of workers to get overtime pay.

According to FLSA, you are entitled to overtime payment if you work more than 40 hours per week. In such instances, the worker is entitled to at least a time and a half the payment they regularly get.

Overtime calculations are made on the number of hours worked per week, not per day. No overtime payment requirement exists for those who work night shifts or during the weekend. If the employee and the employer can reach an agreement for such additional payments, they will be enforced but no such legal requirement exists.

Employers can require overtime work, as long as the employees are compensated adequately for it.

In November 2016, the Arizona Proposition 2016 was enacted. It increased the minimum wage to 10 dollars per hours as of January 2017. In January 2018, the amount was increased further to 10.50 dollars per hour and a new climb to 11 dollars per hour is expected in 2019. Obviously, this regulation will have an effect on the overtime amounts employers will have to pay to their workers.

Exemptions from the FLSA Overtime Payment Conditions

Whenever a worker meets one of the following exemptions, the employer will not be required by law to make overtime payments. The typical exemptions from the FLSA provisions include the following:

  • There are no overtime payments for drivers
  • Mechanics and parts repair professionals do not quality for overtime work
  • Executive employees are exempt
  • Farmworkers are exempt
  • Administrative and professional workers are exempt

While executive, administrative and professional employees are exempt under FLSA, the Arizona minimum wage requirements will still apply to the payments these workers receive. As a result, the salary requirement for such professional may be higher than what’s expected under FLSA, even when overtime pay isn’t being calculated.

It is a myth that all workers who receive a fixed salary are exempt from overtime pay. The annual salary, the position specifics and the job duties will rather have to be examined.

Independent contractors are not owed overtime pay. It may be possible, however, for employers to misclassify their workers as independent contractors. Federal law will once again be used to determine whether the respective individual is an independent contractor or a salaried employee.

Click here for more answers to your questions about overtime in Arizona.

What Happens When Employers Fail Paying Overtime?

As an employee, you have certain rights that you can pursue.

If you do not receive your wages or your overtime pay, you have the right to file a complaint with the Arizona Industrial Commission (when the amount is less than 2,500 dollars). A lawsuit in civil court is to be initiated for larger amounts.

The court will determine if wages or overtime payments were due and if this is the case, the employer will be ordered to pay three times the wages due and the court fees for their employee.

An overtime dispute can get very complicated because of the work classification and the exemptions under federal law. In addition, there’s a timeframe for initiating such a civil lawsuit. The statute of limitations will vary from six months to one year from the date on which the alleged violation took place.

You need to consult an employment law attorney if you believe that you’re owed overtime pay. The lawyer will make sure that the claim meets the legal requirements and that their client will be entitled to recovering the sum.