My question involves labor and employment law for the state of: Arizona
I am not sure if this is the appropriate category for my posting.
My daughter and her business partner owns a retail Flat Iron / Hair straightener kiosk and a retail women's apparel store within a mall location. The retail store just recently opened and they are currently in the process of hiring hourly employee's.
The Kiosk employee's are commission based only. If the employee's commission's and hours worked do not meet the minimum hourly wage the employee's are compensated appropriately. (The employee's always exceed minimum hourly wage) Each employee is provided a weekly work schedule. The employee's are required to come to work on time. Employee's are not allowed to stand around, mingle or gossip or having personal non business conversation's with people walking by in the mall. The employee's are not permitted to use their cell phones during their work schedule unless it's an emergency. Naturally, employee's are permitted to use their phone's during their personal time during periodic breaks or while on their personal lunch and dinner breaks. The employee's are given 3 verbal warning's for not following these policies. However, after these verbal warning's the company has implemented a $25.00 penalty fee which is deducted from the employee's commission earning's for being late for their shift, standing around talking and not being productive and for using their phone's for personal business. The employee's sign and agreeing to the companies policies and receiving a penalty fee for not following the company policies. My daughter and her business partner feel it is more appropriate to impose this penalty fee each time the employee does not following the company policies rather than just sending the employee'a home. Essentially sending employee's home would be more of a severe loss of earnings for the employee than imposing this penalty fee each time, including being short staffed. The company retains the penalty fee's collected throughout the year then donates the money to a non-profit charity or a religious organization at the owner's choice. The company does not need to retain this money withheld from their employee's to put it into their pocket.
So, the question: We are curious if the implementation and imposing this penalty fee being deducted from their employee's earnings is allowable by law or legal?
It should be noted this penalty fee being imposed is generally an acceptable and standard practice for kiosk business's of this type.
Thanks for reviewing and responding.
DDSA

