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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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).
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 |
A.R.S. § 23-350 & Federal FLSA
Arizona follows federal rules requiring payment for all hours worked. Common violations include:
Tourism and hospitality workers frequently have off-the-clock claims for setup/cleanup time.
Federal FLSA 29 U.S.C. § 213(a)(1)
Arizona follows federal exemption rules. To be exempt, you must:
Resort "managers," timeshare sales reps, and hospitality supervisors are frequently misclassified.
29 U.S.C. § 254 (Federal Portal-to-Portal Act)
Under the "integral and indispensable" test, you must be paid for:
Theme park workers, resort staff, and warehouse employees often have portal-to-portal claims.
A.R.S. § 23-363 (Prop 206)
Arizona has multiple minimum wage rates—employers must pay the highest applicable:
Flagstaff workers are entitled to one of the highest minimum wages in the U.S.
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:
Arizona's limited tip credit means servers, bartenders, and tour guides have strong protections.
A.R.S. § 23-371 et seq. (Prop 206)
Arizona requires paid sick leave for all employees:
Denying or retaliating for sick leave use is a separate violation with penalties.
Resorts, hotels, tour operators across Arizona:
Water parks, zoos, entertainment venues:
Restaurants, bars, and catering:
Phoenix metro area construction boom:
Hospitals, nursing homes, home health:
Scottsdale, Phoenix metro area:
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.
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.
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.
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
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.
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.
Expert legal review of your overtime claim. No fees unless we win. Use the calculator above to estimate your recovery, then contact us for a detailed case analysis.