Arizona Overtime Pay Laws 2026: AZ Minimum Wage, Rates & Rules

Arizona Overtime Law in 2026

Arizona has no state-specific overtime statute — it defers entirely to the federal Fair Labor Standards Act (FLSA). Overtime is owed at 1.5× the regular rate after 40 hours in a workweek. There is no daily overtime, and there is no double-time requirement.

What Arizona *does* regulate strictly is the minimum wage, indexed annually to inflation under Proposition 206 (the Fair Wages and Healthy Families Act).

2026 Arizona Minimum Wage & OT Rates

| Jurisdiction | 2026 minimum wage | OT rate (1.5×) |

|---|---|---|

| Arizona statewide | $14.70 | $22.05 |

| Flagstaff | $17.85 | $26.78 |

| Tucson | $15.00 | $22.50 |

| Tipped (statewide) | $11.70 cash + tips | $19.05 cash OT |

Run your numbers in our Arizona Overtime Pay Calculator.

Phoenix Construction & Trades Overtime

Arizona's booming construction sector (semiconductor fabs, data centers, residential) employs 210,000+ workers entitled to FLSA overtime. Prevailing wage rules under federal Davis-Bacon apply to TSMC, Intel, and other federally subsidized projects — typically pushing OT rates to $45–$75/hour for skilled trades.

Common construction OT issues in Arizona:

• Travel time between job sites during the workday is compensable and counts toward the 40-hour threshold
• Per diem allowances that exceed IRS GSA rates may be reclassified as wages — boosting the regular rate
• Show-up pay is not required by Arizona law, unlike CA or NJ

Tipped Workers in Arizona

Arizona allows a $3.00 tip credit, meaning employers may pay tipped workers as little as $11.70/hour in cash provided tips bring them to at least $14.70.

Overtime calculation example — Phoenix server:

• Full minimum wage: $14.70
• OT rate: $14.70 × 1.5 = $22.05
• Tip credit (still $3.00, not multiplied): $22.05 − $3.00 = $19.05 cash OT/hour

Mandatory Overtime in Arizona

Arizona places no cap on mandatory overtime for adult private-sector workers. Exceptions:

• Minors under 16: max 18 hours/school week, 40 hours/non-school week
• Registered nurses: protected from mandatory OT in non-emergencies under hospital licensing regulations
• DOT-regulated drivers: 60/70-hour FMCSA limits apply

Salaried Exempt Employees

Arizona uses the federal FLSA salary threshold of $684/week ($35,568/year) as of 2026. Workers earning below this threshold are automatically non-exempt and entitled to overtime regardless of job title. Read our salary to hourly overtime guide.

Paid Sick Leave Interaction

Under Prop 206, employees accrue 1 hour of paid sick time per 30 hours worked (max 24–40 hours/year). Paid sick leave hours do not count toward the 40-hour overtime threshold.

How to Recover Unpaid Overtime in Arizona

• Industrial Commission of Arizona Labor Department (free, 1-year statute of limitations for minimum wage; FLSA OT has 2–3 years)
• Private FLSA lawsuit (recover back wages + equal liquidated damages + attorney's fees)
• Treble damages (3×) are available for minimum wage violations under Prop 206

FAQ

Does Arizona require overtime after 8 hours per day?

No. Arizona follows the federal weekly 40-hour rule. For daily OT states, see our state-by-state comparison.

Does Flagstaff have different overtime rules?

Same OT rules (40-hour weekly), but the higher $17.85 minimum wage means OT starts at $26.78/hour for tipped and minimum-wage workers in city limits.

Are agricultural workers covered?

Most Arizona farm workers are exempt from FLSA overtime under the agricultural exemption, though minimum wage still applies.

Does the 2026 federal No Tax on Overtime deduction apply in Arizona?

Yes. Arizona's flat 2.5% state income tax still applies to all OT earnings, but up to $12,500 ($25,000 joint) in OT premiums is deductible on your federal return through 2028. Details in our No Tax on Overtime 2026 Guide.