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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
employment practices; wage claims
Purpose
Increases, from $5,000 to $12,000, the cap under which an employee may file an unpaid wages claim against an employer with the Labor Department of the Industrial Commission of Arizona (Labor Department).
Background
If an employer fails to pay wages due to an employee, the employee may recover, in a civil action against the employer, the unpaid wages in an amount that is triple the unpaid wages. Instead of pursuing civil action against an employer, an employee may file a written claim with the Labor Department within one year of the claim's accrual, if the amount is less than $5,000. The Labor Department must investigate wage claims to determine if a dispute exists between the parties to the claim. If the Labor Department determines that a claim for unpaid wages is valid, the Labor Department must direct the wages to be paid by the responsible party. The Labor Department, or the employee, may obtain judgment and execution, garnishment, attachment or other available remedies to collect unpaid wages established by the Labor Department's final determination (A.R.S. ยงยง 23-355; 23-356; and 23-357).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Increases the cap of unpaid wages, from $5,000 to $12,000, under which an employee may file a claim against an employer with the Labor Department.
2. Becomes effective on the general effective date.
Prepared by Senate Research
January 29, 2025
MG/AL/ci