The following FAQ's were taken from an FAQ document posted by the Industrial Commission of Arizona and is the follow up to Minimum Wage in Arizona - Part 1
What other responsibilities do employers have in the minimum wage context?
In addition to paying minimum wage, employers are required to:
Keep accurate records of employee wages and hours (unless the employer is granted an exception to the recordkeeping requirements). Employers should maintain these records in their ordinary business practice.
Provide business name, address, and telephone number in writing to employees upon hire.
Allow inspection at the worksite of all payroll records by the Labor Department of the Industrial Commission (hereafter, the “Labor Department”).
Furnish copies of payroll records requested by the Labor Department.
Cooperate with the Labor Department’s investigation into complaints of violation of Arizona minimum wage laws.
Allow the Labor Department to interview employees.
Post the Industrial Commission’s minimum wage notice in a conspicuous place where employees can read the notice. This notice is available as a free download here. Versions are available in both English and Spanish.
Note: Pursuant to A.A.C. R20-5-1208, small employers (defined as a corporation, proprietorship, partnership, joint venture, limited liability company, trust, or association that has less than $500,000 in gross annual revenue) are exempt from the Act’s posting requirements.
Are any businesses exempt from minimum wage record-keeping and posting requirements?
“Small employers” (defined as a corporation, proprietorship, partnership, joint venture, limited liability company, trust, or association that has less than $500,000 in gross annual revenue) are exempt from the Act’s posting requirements. See A.A.C. R20-5-1208. “Small employers” may also request relief from record-keeping requirements in the minimum wage context. See A.A.C. R20-5-1220.
Note: There is a difference between the defined terms “small employer” and “small business.” Unlike “small business,” the definition of “small employer” does not restrict the employer from engaging in interstate commerce.
A request for relief from minimum wage record-keeping requirements must be submitted in writing to the Labor Department of the Industrial Commission and must contain the following:
The reasons for the request for relief;
An alternate manner or method of making, keeping, and preserving records that will enable the Labor Department to determine hours worked and wages paid; and
The signature of the employer or an authorized representative of the employer.
Employers can direct requests for relief from record-keeping requirements to:
Industrial Commission of Arizona, Labor Department 800 W Washington St. Phoenix, AZ 85007
What kind of record-keeping is required by Arizona’s minimum wage laws?
Unless otherwise exempted from the record-keeping requirements, employers subject to Arizona’s minimum wage laws are required to keep records that employers generally maintain in their ordinary business practice, and track records required under the federal Fair Labor Standards Act. Employers are required to maintain payroll records showing the hours worked and wages paid, including basic time and earning cards or sheets, wage rate tables, records of additions to or deductions from wages paid and any written agreement relied upon to calculate credits toward the minimum wage. Separate record-keeping requirements are permitted for employees on fixed schedules and employees who are compensated on a salary basis at a rate that exceeds the minimum wage required under the Fair Wages and Healthy Families Act and who, under the federal Fair Labor Standards, are an exempt bona fide executive, administrative, or professional employee, including an employee employed in the capacity of academic administrative personnel or teachers in elementary or secondary schools, or in outside sales.
How long is an employer required to keep records required by Arizona’s minimum wage laws?
What happens if an employer violates the Fair Wages and Healthy Families Act’s record-keeping and posting requirements?
An employer who violates the Fair Wages and Healthy Families Act’s record-keeping and posting requirements is subject to a civil penalty of at least $250 for the first violation and at least $1000 for each subsequent or willful violation. Special monitoring and inspections may also be imposed. Additionally, if an employer fails to maintain required records, it will be presumed that the employer did not pay the required minimum wage or earned paid sick time in a disputed case. An employer has the right to rebut this presumption with evidence that the employer paid the employee the required minimum wage.
How can Arizona’s minimum wage be higher than the federal minimum wage?
Under federal law, a state may require payment of a minimum wage that exceeds the federal minimum wage.
Which minimum wage law applies to Arizona employers – state or federal?
Most employers are subject to both federal and state minimum wage laws. When there are different requirements between the laws, employers must follow the requirement that is the most beneficial to the employee. Because Arizona’s minimum wage laws require payment of a higher minimum wage than federal law, an Arizona employer who is subject to both laws must pay the Arizona minimum wage rate.
Can an employee agree to work for less than Arizona’s minimum wage?
No. The minimum wage obligation cannot be waived by any verbal agreement, written agreement, or employment contract.