The latest Arizona minimum wage increases have some restaurant owners worried. Those who own BKD’s Backyard Joint in Chandler and two Valley locations of Melting Pot fear a minimum wage increase of 10% by the August calculation date. There is no provision for Arizona’s minimum wage to fall in times of recession. The result could be more job losses, business closures, and a worse recession next time around. That’s what the TMWA is aimed at.
TMWA allows for a $3.00 tip credit
If you work in the service industry, you can get information about the minimum wage in Arizona and tip rules. If you’re wondering whether or not you qualify for a tip credit, read this. Arizona allows employers to take a tip credit when the minimum cash wage is not enough. Federal law, as well as many state laws, allows employers to take a tip credit on a cash basis, but an employee’s tips are counted in the calculation of the minimum wage.
There are several ways to avoid paying too little to employees who don’t receive tips. Employers in Arizona may deduct their share of the credit card processing fees from employees’ tips. However, this practice is only legal if the tips were received from a single customer. If an employee has earned more than their minimum wage, he or she may be entitled to a higher tip credit. However, it’s important to remember that credit card processing fees are tax-deductible for employers in Arizona. If you don’t pay enough to comply with the law, consider hiring software that calculates tips and keeps track of them.
Another option is to implement tip pooling, which divides the tips among the employees who serve the customers. It’s important to know that Arizona law allows employers to take a tip pool without violating state minimum wage laws. Moreover, employers cannot require employees to share tips with non-tipped employees. If your business practices a tip pool, be sure to consult with an attorney to see if you can get around the tip credit rules.
TMWA prohibits deducting from an employee’s wages if doing so would result in the employee receiving less than the minimum wage
To comply with the TMWA, employers are not allowed to deduct money from an employee’s wages if doing this would result in the worker receiving less than the minimum wage in Arizona. Generally, this means that employers cannot pay employees with payment cards or reloadable debit cards. However, employers are allowed to make these arrangements if the payment cards are issued by a company or are provided to employees.
TMWA also gives employees the right to bring private lawsuits against employers that fail to pay their employees the minimum wage. If the employee prevails, the employer may be liable for reasonable attorney’s fees and appropriate legal or equitable relief, including back pay and additional liquidated damages equal to the unpaid minimum wage.
Under the TMWA, employers are not allowed to deduct wages from an eligible employee if it would result in the employee receiving less than the minimum wage in Arizona. Employers may not make deductions for tip credit unless the employee consents. However, if the employee declines to accept direct deposit, the employer cannot refuse employment. The employee also has the right to revoke his or her consent at any time.
Exemptions from the Arizona minimum wage
The Arizona minimum wage has some exceptions. Some employees are exempt, including employees of small businesses and government agencies. Others are exempt if they work for family or friends. In addition, small businesses with gross annual revenues under $500k are exempt from paying their employees the minimum wage. Even casual babysitters who watch a child at home are exempt from the law. However, employers should ensure they keep accurate records of all hours worked.
Businesses in Arizona are required to post certain information regarding employee rights and duties. Posters must include the minimum wage and accrued sick leave information, as well as notices about occupational hazards, such as spinal meningitis and TB. Some businesses may even be required to offer tip credits to their employees. The federal Fair Labor Standards Act allows employers to use tip pools in Arizona. The direct wage for employees is $9 per hour as of January 1, 2020. The tipped wage will be $3 below the state minimum wage in 2021.
Currently, Arizona’s minimum wage is tied to the Consumer Price Index. Therefore, prices can increase over time and raise the minimum wage even further. With that in mind, the minimum wage could increase to $10 an hour by 2023, and if it does, it’ll rise to $12 an hour by then. And that’s just the beginning of the rise in the minimum wage in Arizona.