What is the overtime rate for hourly employees?

In Arizona, the overtime rate for non-exempt employees is 1.5 times the employee’s regular hourly rate. So, for example, if an employee’s usual rate of pay was $15 per hour, then their overtime rate would be $22.50 ($15 x 1.5) for any hours worked over 40 in a given workweek. The Fair Labor Standards Act (FLSA) is the federal law that governs overtime pay and other wage and hour issues. Most employees in the United States are covered by the FLSA, and in Arizona, state labor laws generally follow the minimum guidelines of the FLSA. This means that most employees in Arizona are entitled to overtime pay at 1.5 times their usual rate after 40 hours of work. Employers are not allowed to average out hours over a two-week period. This means that overtime must be paid out for any hours worked over 40 hours in a single workweek. It is also important to note that if an employee works on a bank holiday, he or she must still be paid at the overtime rate, as the bank holiday is still considered part of the workweek. Employers must also keep accurate records of all hours worked by their employees, including overtime hours. By law, all employees in Arizona are entitled to their overtime wages, and employers who fail to pay out their employees’ overtime wages can be subject to substantial fines.

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