Payment of Wages: Arizona

Federal law and guidance on this subject should be reviewed together with this section.

Authors: Paige A. Martin and Mary Grace McNear, Kutak Rock LLP

Summary

• The term wages is broadly defined in the Arizona wage payment law. See Definition of Wages.
• In Arizona, employers may pay wages in cash, check, transfer to an employee's checking or savings account or by electronic paycard. See Wage Payment Methods.
• Arizona employees must be paid at least twice a month, on regular paydays. Special rules apply to certain employers and employees who are exempt from the federal Fair Labor Standards Act or the National Labor Relations Act. Penalties are imposed for violations of the law. See Pay Frequency.
• Arizona law allows employers to make various deductions from employees' pay with employee consent. See Permitted and Prohibited Wage Deductions.
• Employers must provide each employee who is paid by direct deposit or paycard with a pay statement with every payment of wages. Each pay statement must include specific information. Paid sick time information must be provided with new employees' wage payments. See Pay Statement Requirements.
• When employment ends, employees must be paid within a certain time period depending on whether the termination was voluntary or involuntary. Specific rules apply to the payout of accrued but unused time on termination. See Final Pay.
• After the death of an employee, employers must follow a specific set of rules in order to properly turn over any compensation owed to the deceased employee's estate or survivors. See Deceased Employee Wages.
• Unclaimed wages are considered abandoned property after one year. Employers must file an annual report of unclaimed wages with the state. Penalties are imposed for noncompliance. See Unclaimed Wages.
• Tucson has requirements pertaining to the payment of wages. See Local Requirements.