Labor Compliance Guide

Hours & Pay Regulations

Normal Working Hours

The Fair Labor Standards Act defines the workweek as a fixed and recurring period of 168 hours comprised of seven consecutive 24-hour periods that do not need to coincide with the calendar week. It is adjustable only if the change is designed to be permanent. Each week is considered on its own for purposes of calculating overtime. The hours of two or more weeks may not be averaged.


The FLSA requires most employees in the U.S. to receive overtime pay at time and one half the regular rate of pay for all hours worked over 40 hours in a workweek. Under the DOL’s FairPay Rules, workers paid up to $23,660 annually, or $455 a week, are automatically guaranteed overtime protection, regardless of title or duty.


Annual Leave

Unpaid Leave Based on Agreement between employer and employee (FSLA). The Fair Labor Standards Act (FLSA) does not require payment for time not worked, such as vacations or holidays (federal or otherwise). These benefits are generally a matter of agreement between an employer and an employee (or the employee’s representative). Alaska does not have holiday pay or vacation pay stated in the law and is decided on the basis of employer and employee agreement.

Minimum Wage

The state’s hourly minimum wage has increased to $10.50 on January 1, 2018, and is scheduled to go up to $11 on January 1, 2019; and to $12 on January 1, 2020, thereafter, the state’s minimum wage is to be annually adjusted for inflation. The state hourly wage for tipped employees is $3.00 as on January 1, 2018.


Local governments may establish by ordinance a minimum wage rate within their geographical boundaries, provided that the rate is not lower than the state minimum wage. State and local governments and their agencies may consider minimum wage violations in determining whether to grant or renew public contracts, financial assistance, or licenses.

Tips & Gratuities

Effective January 1, 2018, employers may pay workers who customarily and regularly receive tips or gratuities an hourly minimum cash wage of not less than $7.50, or $2.50 less than the $10 hourly minimum wage. Employers may take a $3 tip credit. However, if an employee’s tips combined with the employer’s direct wages do not equal the state’s hourly minimum wage, then the employer must make up the difference.


The tipped-worker hourly cash wage is to increase to $8 on January 1, 2019, and to $9 on January 1, 2020. Employers may average tips over the course of a payroll period. Employers must provide written notice to employees before exercising the tip credit. Employers also must report the tip credit taken each pay period to employees in writing. Employers may apply for the tip credit only if they exercise no control over the employee’s tips.

Meal Breaks

State labor laws do not regulate employee breaks, lunch periods or the number of hours that may be worked, leaving these to the employer’s discretion, with some exceptions (e.g., statute stipulates the number of hours that minors under the age of 16 may work, as well as the types of work that minors under the age of 18 may perform).


Special Leave

Paid  Sick Leave

Employees are entitled to earned paid sick time and accrue a minimum of one hour of earned paid sick time for every 30 hours worked, subject to the following limitations:

  • Employees whose employers have less than 15 employees may only accrue or use 24 hours of earned paid sick time per year;
  • Employees whose employers have 15 or more employees may only accrue or use 40 hours of earned paid sick time per year; and
  • Employers are permitted to select higher accrual and use limits.

Earned paid sick time may be used for the following purposes:

      • Medical care or mental or physical illness, injury, or health condition; or
      • A public health emergency; or
      • Absence due to domestic violence, sexual violence, abuse, or stalking. Employees may use earned paid sick time for themselves or for family members. Arizona Revised Statutes § 23-373.
Crime Victim Leave

Employers with 50 or more employees also must allow employees who are crime victims to take leave for certain reasons; however, this leave can be unpaid.

Unpaid Leave
Employees may be eligible to take unpaid, job-protected, leave under the Family Medical Leave Act (“FMLA”). Please refer to main United States page for further details on this Federal law.
Funeral Leave

Funeral Leave is based on an agreement between employer and employee.

Jury Duty Leave

Employers must provide employees summoned for jury duty with paid time off in order to serve as jurors. Employees are required to provide their employers with their jury summons the next working day after the employees receive them. An employer may not require an employee to use annual, vacation, unpaid leave, or sick leave for time spent serving as a juror. The employer may be able to deduct wages the employee received for serving as a juror from the employee’s compensation. An employer may not discharge or subject an employee to any adverse employment action due to serving as a juror, provided the employee returns to work following dismissal from jury duty.

Voting Leave

Employees who are registered to vote must be permitted to take the necessary time off from work, up to one hour, to vote in any municipal, county, state or federal primary or general election. Employees must provide reasonable notice to their employers if they require time off to vote. The employer may specify the hours of leave. However, if an employee’s work schedule begins at least two hours after the polls open, or ends at least one hour prior to the polls closing, the employee is not eligible for voting leave.

Donor Leave

State employees are allowed up to 30 days paid leave for organ donation and 5 days for bone marrow donation. (§41-706, R2-5AB609).

Last updated on: February 7th, 2019