What are the consequences of not paying employees the minimum wage?
In Arizona, not paying employees the minimum wage comes with serious consequences. When employers fail to pay workers the minimum wage, they violate the Fair Labor Standards Act (FLSA), which sets minimum wage requirements at the federal level. Employees who are not paid the minimum wage can file a wage and hour complaint with the U.S. Department of Labor, which can result in fines and other sanctions for the employer. Employers who fail to pay employees the minimum wage may also be liable for back pay plus interest for any wages the employee is owed. In addition, an employer may be liable for liquidated damages, which is essentially double the back pay they owe. Employers may also face serious penalties from the State of Arizona if they do not pay the minimum wage. These penalties can include hefty fines, and the employer may also be required to pay back pay to its employees. In addition, if the violation is found to be willful, the employer may also be subject to criminal punishment, including jail time. Finally, employers who fail to pay employees the minimum wage may find themselves facing legal action from their employees. This could result in a lawsuit, and the employer may be liable for any unpaid wages, liquidated damages, and even legal fees. Overall, employers should ensure they are paying their employees at least the state and federal minimum wage to avoid any potential consequences. Failing to do so could have serious consequences for the employer.
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