Holiday Pay Requirements in Arizona (AZ)

Arizona does not have its own law on the books concerning holiday pay for its workers. Whether or not employers pay employees holiday pay is solely at the employer’s discretion and enforcement is provided by the Industrial Commission of Arizona (ICA). They do, however, have to comply with the federal laws determined by the Fair Labor Standards Act (FLSA),

The Fair Labor Standards Act (FLSA), instituted in 1938, established a national minimum wage for employees, guaranteed time and a half for overtime in certain jobs, and prohibited most employment of minors. The FLSA does not require payment for time the employee does not work, including vacations and holidays. Holiday pay is generally agreed upon between the employer and the employee. There are exceptions for some salaried employees working in executive, administrative, professional and administrative positions as well as certain employees in computer-related positions. These employees must meet certain standards as well as being paid on a salaried basis at not less than $455 per week. An employee’s specific duties and salary must meet all the federal requirements in order to be exempt from the overtime rules including holiday pay.

The Industrial Commission of Arizona (ICA) was created in 1925 in response to the establishment of a workers’ compensation system. Over the years, the ICA’s duties have expanded to include such issues as occupational safety, health, compliance responsibilities for youth employment laws, wage dispute resolution, injured workers issues, and workers’ compensation. Funded by an annual tax on workers’ compensation premiums, the ICA is overseen by a commission appointed by the governor and confirmed by the Arizona State Senate. Their goal is to enforce all applicable laws and regulations regarding “the protection of life, health, safety and welfare of employees within the state.”

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