Bill Text: AZ HB2151 | 2011 | Fiftieth Legislature 1st Regular | Engrossed
Bill Title: State employees; wage payments
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2011-04-19 - Governor Signed [HB2151 Detail]
Download: Arizona-2011-HB2151-Engrossed.html
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Senate Engrossed House Bill |
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State of Arizona House of Representatives Fiftieth Legislature First Regular Session 2011
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HOUSE BILL 2151 |
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AN ACT
amending sections 23‑350 and 23-351, Arizona Revised Statutes; relating to payment of wages.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 23-350, Arizona Revised Statutes, is amended to read:
23-350. Definitions
In this article, unless the context otherwise requires:
1. "Department" means the labor department of the industrial commission of Arizona.
2. "Employee" means any person who performs services for an employer under a contract of employment either made in this state or to be performed wholly or partly within this state.
3. "Employer" means any individual, partnership, association, joint stock company, trust, corporation, the administrator or executor of the estate of a deceased individual or the receiver, trustee or successor of any of such persons employing any person. Employer also includes this state and any county, municipality, school district or other political subdivision of this state.
4. "Hours worked" includes all time an employee is employed.
5. "Payroll card account" means an account that is directly or indirectly established through an employer and to which electronic fund transfers of an employee's wages are made on a recurring basis whether the account is operated or managed by the employer, a third-party payroll processor, a depository institution or any other person.
5. 6. "Wages" means nondiscretionary compensation due an employee in return for labor or services rendered by an employee for which the employee has a reasonable expectation to be paid whether determined by a time, task, piece, commission or other method of calculation. Wages include sick pay, vacation pay, severance pay, commissions, bonuses and other amounts promised when the employer has a policy or a practice of making such payments.
Sec. 2. Section 23-351, Arizona Revised Statutes, is amended to read:
23-351. Designation of paydays for employees; payment; exceptions; state employees violation; classification
A. Each employer in this state shall designate two or more days in each month, not more than sixteen days apart, as fixed paydays for payment of wages to the employees.
B. Notwithstanding the provisions of subsection A, each employer in this state whose principal place of business is located outside the state of Arizona and whose payroll system is centralized outside the state of Arizona may designate one or more days in each month as fixed paydays for payment of wages to the following employees:
1. Professional, administrative or executive employees or employees employed in the capacity of an outside salesman as those terms are defined under the fair labor standards act of 1938, as amended.
2. Employees employed in a supervisory capacity as defined under the national labor relations act.
C. Each employer shall, on each of the regular paydays, pay to the employees, in lawful money of the United States, or in negotiable bank checks or, in the case of the state or any political subdivision thereof, warrants payable on demand and bearing even date with the payday or, with the written consent of the employee, by deposit on the payday to the employee's credit at a financial institution of the employee's choice which is a member of the federal deposit insurance corporation or of any other comparable federal or state agency, all wages due the employees up to such date, except:
1. In the case of employees remaining in the service of any such employer, with the exception of school district employees, all wages other than overtime or exception pay not to exceed five days of labor may be withheld. School districts may withhold wages during their normal two week payroll processing cycle. An employer other than a school district may satisfy the requirements of this paragraph by any of the following:
(a) Personally delivering the wages to the employee no later than five business days after the end of the most recent pay period.
(b) Depositing the wages in the United States mail no later than five business days after the end of the most recent pay period for delivery to an address specified by the employee.
(c) Personally delivering the wages to the employee no later than ten days after the end of the most recent pay period for an employer whose payroll system is centralized outside the state of Arizona.
2. In the case of employees of school districts or of the Arizona state school schools for the deaf and the blind, the annual salary may be prorated in any number of payments, and the employee may select whether to have the salary prorated or paid during the actual months worked. If the employee's salary is prorated, all such payments still due at the close of the school attendance year or fiscal year may at the option of the employee be paid in either a lump sum or paid within a period of two months after the close of the fiscal year.
3. Overtime or exception pay shall be paid no later than sixteen days after the end of the most recent pay period.
D. An employer may choose one of the following methods to pay wages to employees under subsection A:
1. In lawful currency of the united states.
2. In negotiable bank checks.
3. In the case of this state or any political subdivision of this state, warrants payable on demand and bearing even date with the payday.
4. With the written consent of the employee, by deposit on the payday to the employee's credit at a financial institution of the employee's choice that is a member of the federal deposit insurance corporation or any other comparable federal or state agency.
5. If the employer has offered deposit on the payday to the employee's credit at a financial institution of the employee's choice that is a member of the federal deposit insurance corporation or any other comparable federal or state agency and the employee does not provide consent and does not designate a financial institution, by deposit on the payday to the employee's credit to a payroll card account.
D. E. When an employee's wages are paid by deposit in a financial institution he the employee shall be furnished with a written or electronic statement of his the employee's earnings and withholdings. Any wage deposit plan adopted by an employer shall entitle the employee to one withdrawal for each deposit, free of any service charge to the employee. The consent of an employee for payment of wage by deposit in a financial institution shall not constitute a prior assignment of wages to the financial institution and is revocable at any time prior to the transmittal to the financial institution by the employer. No person shall be denied employment nor discharged or reprimanded for refusal to consent to payment of wage by deposit in a financial institution.
F. When an employee's wages are paid to a payroll card account the employee shall be furnished with a written or electronic statement of the employee's earnings and withholdings. A payroll card account plan adopted by an employer shall entitle the employee to one free withdrawal for each deposit of wages per pay period but not more frequently than once per week. An employer shall also provide a list of all fees associated with the use of an employer provided payroll card account to an employee who receives wages by deposit to a payroll card account.
E. G. Subsection B shall not apply to employees whose salaries are subject to provisions of collective bargaining agreements.
H. Each employer in this state, in its discretion, may pay all wages due an employee by deposit on the payday at a financial institution of the employee's choice or, if the employee does not designate a financial institution, to a payroll card. For the purposes of this subsection, "financial institution" means a member of the federal deposit insurance corporation or of any other comparable federal or state agency.
F. I. Any employer who violates a provision of this section is guilty of a petty offense.
