Phoenix Overtime and Wage Disputes Lawyer

One hallmark of a profitable business where employees are happy is they clearly know how much they are owed and always receive it in a timely manner. Overtime hours must be accounted for, and employees must be classified correctly, as a salaried or hourly employee, or as an independent contractor.

Since 1938, workers have been protected by The Fair Labor Standards Act (FLSA), a blueprint for ensuring the working relationship is fair to all. If you are an employer who has an issue with an employee claiming they are not being paid their fair share, contact a Phoenix overtime and wage disputes lawyer to untangle the confusion. Our local business solution attorneys know what you need to do.

What Are the Federal and Arizona Minimum Wages?

As an employer, you should know how much you must pay your employees. The federal minimum wage is $7.25 per hour, but Arizona’s Fair Wages and Healthy Families Act set the state’s minimum wage at $14.70 per hour at the beginning of 2025, while Flagstaff and Tucson maintain an even higher minimum. Restaurant workers earn $11.70 per hour plus tips. You are obligated under the FLSA to pay the higher of the two, Arizona’s minimum. You must also pay time-and-a-half to employees who work more than 40 hours in each week.

Certain wage and hour actions you should avoid include:

• Asking an employee to work late periodically, and telling them they should have completed their work within 40 hours
• Scheduling fewer hours the week following an overtime week and averaging the two weeks
• Exchanging overtime for comp time, without factoring overtime hours worked
• Docking employees by a half hour when they clock in a few minutes late

Avoiding these practices could mean avoiding a lawsuit or a regulatory hearing, but if you have been notified of either, talk to a Phoenix overtime and wage disputes attorney now.

Avoid Misclassifying Employees

Some employers classify employees as independent contractors to escape paying benefits such as sick leave, vacation, overtime, and stock options. However, this practice results in employees receiving reduced Social Security benefits at retirement. The Code of Federal Regulations § 788.16 requires an assessment of the work relationship to determine an employee’s status. Independent contractors essentially work for themselves on projects that are collaborative with clients while employees are directed daily by their bosses.

As an employer, you must not try to pay employees’ salaries instead of an hourly wage to avoid paying overtime, although recent legislation has included some salaried employees under the overtime laws if their salaries meet certain criteria. Overtime and wage disputes can be complex because they involve state and federal laws, but a knowledgeable Phoenix employment lawyer understands the nuances and could help you avoid costly mistakes.

FLSA Penalties for Employers

Be mindful that when employers violate employee overtime protection protocols under the FLSA, steep penalties apply, especially for repeat offenders. Civil penalties can accrue up to $1,000 per violation, with a fine of up to $10,000. If the employer repeats the violation, criminal charges can also be brought.

Our attorneys can help you adopt policies that adhere to best practices for managing employees’ wages and overtime. We can represent you if an FLSA complaint is filed against you, or an employee sues you. We can also discuss the importance of good recordkeeping when we sit down with you and study your current situation. A Phoenix overtime and wage disputes attorney is ready and able to streamline your operations and represent your interests.

Our Phoenix Attorneys Have Solutions if You Are an Employer Facing an Overtime or Wage Dispute

Disputes over employee wages are tricky if you do not see them coming and you must gather evidence that clears you of any wrongdoing. It is better to anticipate problems and determine solutions before the disputes arise.

We leverage our decades of experience assisting employers accused by employees of shorting their pay. A Phoenix lawyer with our level of experience and credibility in wage and overtime disputes can review your situation and determine what your next move should be.