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Arizona Overtime Laws

Arizona has a higher minimum wage than federal law and requires paid sick leave for all workers. While Arizona follows federal FLSA for overtime, the state's higher tipped minimum wage ($12.15/hour) is nearly 6x the federal rate. Flagstaff workers earn $18.35/hour—one of the highest minimum wages in the country.

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Calculate Your Unpaid Overtime

Get an estimate of what you're owed in just 60 seconds. This calculator is based on federal FLSA laws and includes liquidated damages (double your unpaid wages).

How Are You Paid?

$ /hour
hours
Must be your *paid* hours (can be under 40)
weeks
Default is 1 year (52 weeks). Adjust if different.

Did You Perform Work Off-the-Clock?

This includes work before/after shifts, during breaks, or from home that wasn't recorded or paid.

This calculation is an estimate based on applicable labor laws. Your actual recovery may vary based on state laws and specific circumstances.

Arizona vs. Federal Overtime Laws

🔑 Key Fact: Arizona's Tipped Minimum Is Nearly 6x Federal

While Arizona follows federal FLSA for overtime (1.5x after 40 hours), the state provides critical protections through Proposition 206. Arizona's tipped minimum of $12.15/hour is nearly 6 times the federal $2.13. Combined with cities like Flagstaff ($18.35) and Tucson ($15.45), Arizona workers often recover far more than federal law alone would provide.

Provision Arizona Law Federal FLSA Which Applies?
State Minimum Wage $15.15/hr (2026) $7.25/hr Arizona (2x higher)
Flagstaff Minimum Wage $18.35/hr (2026) $7.25/hr Flagstaff (2.5x higher!)
Tucson Minimum Wage $15.45/hr (2026) $7.25/hr Tucson (2x higher)
Tipped Minimum Wage $12.15/hr (tip credit only $3.00) $2.13/hr (tip credit $5.12) Arizona (nearly 6x higher!)
Overtime Threshold Follows federal (40 hrs/week) 40 hours/week Same (1.5x after 40 hrs)
Daily Overtime Not required Not required Neither requires
Paid Sick Leave Required (Prop 206) Not required Arizona (extra protection)
Statute of Limitations 2-3 years (Prop 206 claims) 2-3 years Same (file both for max recovery)
Damages Prop 206: 2x for MW/EPST; § 23-355: up to 3x all wages (1yr) Presumptive 2x (liquidated) Arizona (3x potential, no stacking)
Portal-to-Portal (Compensable Time) Follows federal (integral & indispensable) Integral & indispensable test Federal test applies

Common Wage Violations in Arizona

⏰ Off-the-Clock Work

A.R.S. § 23-350 & Federal FLSA

Arizona follows federal rules requiring payment for all hours worked. Common violations include:

  • Pre-shift meetings, equipment preparation
  • Post-shift cleanup, closing procedures
  • Working through meal breaks
  • Answering work calls, texts, emails after hours

Tourism and hospitality workers frequently have off-the-clock claims for setup/cleanup time.

🏷️ Misclassification as "Exempt"

Federal FLSA 29 U.S.C. § 213(a)(1)

Arizona follows federal exemption rules. To be exempt, you must:

  • Earn at least $684/week ($35,568/year)
  • Perform genuine executive, administrative, or professional duties
  • Exercise discretion and independent judgment

Resort "managers," timeshare sales reps, and hospitality supervisors are frequently misclassified.

🚶 Portal-to-Portal Violations

29 U.S.C. § 254 (Federal Portal-to-Portal Act)

Under the "integral and indispensable" test, you must be paid for:

  • Donning/doffing uniforms, safety gear, PPE
  • Security screenings at theme parks, resorts
  • Walking from staging areas to work locations
  • Waiting time under employer control

Theme park workers, resort staff, and warehouse employees often have portal-to-portal claims.

💵 Minimum Wage Violations (Local Rates)

A.R.S. § 23-363 (Prop 206)

Arizona has multiple minimum wage rates—employers must pay the highest applicable:

  • Statewide: $15.15/hr (2026)
  • Flagstaff: $18.35/hr (2026)
  • Tucson: $15.45/hr (2026)

Flagstaff workers are entitled to one of the highest minimum wages in the U.S.

🍽️ Tip Credit Violations

A.R.S. § 23-363(C) - $3 Maximum Tip Credit

Arizona allows only a $3.00/hour tip credit—much less than federal. Violations include:

  • Taking excess tip credit (tipped wage must be $12.15/hr)
  • Requiring excessive side work at tipped rate
  • Managers participating in tip pools
  • Not making up difference if tips fall short

Arizona's limited tip credit means servers, bartenders, and tour guides have strong protections.

🏥 Paid Sick Leave Violations

A.R.S. § 23-371 et seq. (Prop 206)

Arizona requires paid sick leave for all employees:

  • Small employers (<15): 24 hours/year
  • Large employers (15+): 40 hours/year
  • Accrual: 1 hour per 30 hours worked
  • Can use for self, family, domestic violence, public health emergencies

Denying or retaliating for sick leave use is a separate violation with penalties.

Industries with High Wage Violations in Arizona

🏜️ Tourism & Hospitality

Resorts, hotels, tour operators across Arizona:

  • Resort staff: Off-the-clock setup and breakdown
  • Tour guides: Tip credit violations, prep time
  • Housekeeping: Per-room rates not meeting minimum
  • Seasonal workers: Misclassified as exempt

🎢 Theme Parks & Attractions

Water parks, zoos, entertainment venues:

  • Portal-to-portal: Costume/uniform changes unpaid
  • Security screening: Bag checks after clock-out
  • Walking time: Large facilities = unpaid travel
  • Seasonal designation: Working full-time hours

🍽️ Restaurant & Food Service

Restaurants, bars, and catering:

  • Tip credit: Exceeding $3/hr credit limit
  • Side work: Excessive non-tipped duties
  • Flagstaff workers: Not paid $18.35/hr
  • Opening/closing: Setup and cleanup unpaid

🏗️ Construction

Phoenix metro area construction boom:

  • Travel time: Driving to job sites in company vehicles
  • Tool loading: Equipment prep before leaving yard
  • 1099 misclassification: Workers labeled contractors
  • Heat breaks: Required safety breaks unpaid

🏥 Healthcare

Hospitals, nursing homes, home health:

  • Automatic meal deductions: Deducted but worked through
  • Shift handoffs: Report time unpaid
  • PPE time: Gowning for isolation patients
  • On-call: Required to stay near facility

⛳ Golf Courses & Country Clubs

Scottsdale, Phoenix metro area:

  • Tip violations: Caddies, cart attendants
  • Pre-shift: Course prep time unpaid
  • Seasonal workers: Working year-round, classified seasonal
  • Events: Overtime during tournaments

What You Can Recover Under Arizona Law

💰 Unpaid Wages (Higher State Rates)

Recovery in Arizona is calculated at state or local minimum rates—$15.15/hr statewide, $18.35 in Flagstaff, $15.45 in Tucson—not the federal $7.25. This dramatically increases the value of your claim. Combined with overtime at 1.5x, Arizona workers recover far more than federal law alone would provide.

⚡ Federal Liquidated Damages (100%)

While Arizona state claims have limited damages, you can pursue federal FLSA claims with 100% liquidated damages—doubling your recovery. The 2-3 year federal lookback period is also longer than Arizona's 1-year state limit. Most Arizona wage cases are filed under both state and federal law.

🏥 Paid Sick Leave Violations

Under Prop 206 (A.R.S. § 23-373), if your employer denied required paid sick leave, you can recover the value of the unpaid leave plus potential penalties. Retaliation for using sick leave carries additional damages.

📋 Attorney's Fees & Costs

Under federal FLSA, if you prevail in a wage and hour case, you recover reasonable attorney's fees from your employer. Your employer pays your lawyer's fees separately—they are not deducted from your recovery. This makes it financially viable to pursue wage claims.

Example: Flagstaff restaurant server with tip credit violations

Paid $10/hr instead of $12.15 = $2.15/hr underpayment × 30 hrs × 50 weeks × 2 years = $6,450

Plus potential doubling under FLSA and any unpaid overtime

Why Arizona's Wage Protections Matter

While Arizona follows federal FLSA for overtime rules, the state's higher minimum wages and strict tipped employee protections mean Arizona workers often recover significantly more than federal law alone would provide.

💰
$15.15 State Minimum
Arizona's minimum wage is more than double the federal $7.25. Every unpaid hour is worth significantly more in Arizona.
🏔️
Flagstaff $18.35
Flagstaff workers earn one of the highest minimum wages in the nation—2.5x the federal rate.
🌵
Tucson $15.45
Tucson has its own local minimum wage that exceeds the state rate, providing additional protection.
💵
$12.15 Tipped Minimum
Arizona's tipped minimum is nearly 6x the federal $2.13—only a $3 tip credit allowed, protecting service workers.
🏥
Paid Sick Leave
Arizona requires paid sick leave (24-40 hours/year)—federal law has no such requirement.
⚖️
Up to 3x Damages (A.R.S. § 23-355)
When wages are withheld unreasonably or in bad faith, Arizona courts may award up to treble (3x) damages—more than the federal 2x liquidated damages.

Nationwide Arizona Wage Recovery Team

While Paul M. Botros is licensed in Texas and Florida, we successfully help Arizona workers recover unpaid wages through our network of experienced Arizona employment attorneys. We partner with skilled local counsel who understand Arizona's local wage ordinances and tourism industry practices.

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Frequently Asked Questions

Does Arizona have its own overtime law?

No, Arizona does not have a state-specific overtime law—the state follows the federal Fair Labor Standards Act (FLSA) for overtime requirements. This means you're entitled to 1.5x your regular rate for all hours worked over 40 in a workweek. However, your overtime rate is calculated using Arizona's higher minimum wage rates (up to $18.35 in Flagstaff), not the federal $7.25. So while the overtime rules are the same, your overtime pay is significantly higher in Arizona.

What is the minimum wage in Arizona, Flagstaff, and Tucson for 2026?

As of January 1, 2026, Arizona has three different minimum wage rates: Statewide: $15.15/hour (adjusted annually for inflation under Prop 206), Flagstaff: $18.35/hour (one of the highest in the nation), and Tucson: $15.45/hour. Employers must pay the highest applicable rate based on where the work is performed. If you work in Flagstaff, you're entitled to $18.35—not the state or federal rate.

What are the tipped employee rules in Arizona?

Under Arizona's Prop 206 (A.R.S. § 23-363), tipped employees must receive at least $12.15 per hour in direct wages—nearly 6 times the federal $2.13. Arizona allows only a $3.00 tip credit, meaning the employer can pay $3 less than minimum wage IF tips make up the difference. If tips don't bring you to $15.15/hour (or higher local rates), the employer must make up the difference. This is a much stronger protection than federal law, where the tip credit is over $5.

How far back can I recover unpaid wages in Arizona?

Arizona minimum wage claims under Proposition 206 (A.R.S. § 23-364(H)) have a 2-3 year statute of limitations—matching federal FLSA. For willful violations, the lookback extends to 3 years. The statute also includes a "continuing violation" provision that can extend recovery for ongoing violations. Note: Small wage claims under $5,000 filed with the Industrial Commission have a shorter 1-year limit. Most Arizona wage cases are filed under both state Prop 206 and federal FLSA to maximize recovery, using the longer lookback with Arizona's higher minimum wage rates.

Does Arizona require paid sick leave?

Yes. Under Proposition 206 (A.R.S. § 23-371 et seq.), Arizona requires employers to provide paid sick leave: Small employers (fewer than 15 employees) must provide 24 hours per year, while large employers (15+ employees) must provide 40 hours per year. Sick leave accrues at 1 hour for every 30 hours worked. You can use sick leave for your own illness, to care for family members, for domestic violence-related needs, or during public health emergencies. This is a protection that federal law does not provide.

What is portal-to-portal time and is it paid in Arizona?

Portal-to-portal time refers to time spent on work-related activities before and after your core job duties. While Arizona has not formally incorporated the federal Portal-to-Portal Act (Roberts v. State, 2022), Arizona courts generally apply federal FLSA standards for compensable time. This means you must be paid for activities that are "integral and indispensable" to your job, including: donning and doffing required uniforms, costumes (theme parks), or protective equipment; security screenings at resorts, theme parks, or warehouses; walking time from staging areas to your workstation after gearing up; and controlled waiting time. Tourism and hospitality workers frequently have these claims.

What damages can I recover in an Arizona wage claim?

Arizona provides three damages frameworks:

Prop 206 (A.R.S. § 23-364): For minimum wage or earned paid sick time violations, the statute provides for mandatory double damages (unpaid wages plus an equal additional amount). No good-faith defense is available. Claims may be brought within 2-3 years.

FLSA (Federal): For minimum wage or overtime violations, federal law provides for presumptive liquidated damages equal to the unpaid wages (2x total), though employers may reduce this by proving good faith. 2-3 year lookback.

A.R.S. § 23-355: For any unpaid "wages" (including overtime, regular pay, commissions, bonuses, and final pay), courts may award up to treble damages (3x) at their discretion. This remedy is typically available where an employer withholds wages unreasonably or in bad faith. Claims must be filed within 1 year of when wages should have been paid. Enhanced damages under this statute cannot be stacked with FLSA liquidated damages or Prop 206 double damages for the same dollars.

What industries have the most wage violations in Arizona?

In Arizona, industries with high rates of wage violations include: Tourism/Hospitality (resort staff, hotel housekeeping, tour guides—tip credit violations, off-the-clock work); Theme Parks/Attractions (costume changes, security screening, walking time); Restaurants (tip credit exceeding $3, side work, Flagstaff workers not paid $18.35); Construction (travel time, 1099 misclassification, heat break issues); Healthcare (automatic meal deductions, shift handoffs); and Golf/Country Clubs (caddie tip violations, pre-shift work, overtime during tournaments).

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