Do the requirements of the Arizona Minimum Wage Act apply to all employers?
The Arizona Minimum Wage Act applies to all employers except:
The State of Arizona;
The United States; and
Small businesses that are not subject to the Federal Fair Labor Standards
Act and which have less than $500,000 in gross annual revenue. This
exclusion for small businesses under the Arizona Minimum Wage Act is
very limited. Practically speaking, most Arizona small businesses will be
subject to the Arizona Minimum Wage Act. This is because most
employers, including small businesses, are subject to the Federal Fair
Labor Standards Act. Under the Federal Fair Labor Standards Act
coverage extends in one of two ways: Enterprise coverage or individual
coverage. Employees who work for an “enterprise” that is engaged in
interstate commerce or the production of goods for commerce are covered
under the FLSA. Likewise, regardless of the volume of sales of an
enterprise (more or less than $500,000), individual employees whose work
affects interstate commerce are covered under the FLSA.
Are there any exemptions under the Arizona Minimum Wage Act?
Unlike the Federal Fair Labor Standards Act, the Arizona Minimum Wage Act has very
few exemptions. The Arizona Minimum Wage Act applies to any employee employed by
an employer except the following:
A person who is employed by a parent or a sibling;
A person who is employed performing babysitting services in the
employer’s home on a casual basis;
A person employed by the State of Arizona or the United States
government; and
A person employed in a small business grossing less than $500,000 in
annual revenue, if that small business is not required to pay minimum
wage under the Federal Fair Labor Standards Act. This exclusion for small
businesses under the Arizona Minimum Wage Act is very limited.
Practically speaking, most Arizona small businesses will be subject to the
Arizona Minimum Wage Act. For additional discussion of this exemption,
please see the preceding question.