WorkUnpaid wages and overtime
Unpaid wages and overtime in Arizona
Withheld wages are not a bookkeeping dispute in Arizona. When an employer wrongfully withholds wages, a court may award up to three times the amount owed under A.R.S. § 23-355, and the final paycheck after a firing is due within seven working days or by the next regular payday, whichever is sooner. Commissions and bonuses earned under a plan can be wages too, and federal law adds overtime at time-and-a-half past 40 hours unless a real exemption applies. If your employer is holding your pay, you may have a claim worth more than the missing amount.
What Blueshoe does
The groundwork, in order, before you decide anything.
- 01
Count what is owed
Hours, rate, overtime, commissions, final pay, PTO under the policy. Blueshoe builds the number from your records and the statute, including the treble exposure.
- 02
Pick the route
The Industrial Commission handles claims up to $5,000 through a fast administrative process; a lawsuit fits larger or contested amounts. You get the trade-off in writing.
- 03
Draft the demand
A demand letter that cites A.R.S. § 23-355 and sets a date usually clarifies an employer's timeline quickly. Drafted for you, reviewed before it goes.
- 04
An attorney can file
If the employer does not pay, a licensed Arizona attorney can review the file and bring the claim, on terms set out in writing first.
What the law says
What the law says about unpaid wages in Arizona
Can I really recover triple my unpaid wages?
You may. Under A.R.S. § 23-355, when an employer wrongfully withholds wages, a court may award up to three times the amount owed. Trebling is the court's call, not automatic, and generally turns on whether there was a good-faith dispute, which is why documentation matters: the clearer the record that the money was owed, the harder the withholding is to defend.
When is my final paycheck due?
After a firing, A.R.S. § 23-353 generally requires the final paycheck within seven working days or by the next regular payday, whichever comes sooner. If you resign, it is due by the next regular payday. Commissions and bonuses earned under a plan can be wages too, as can unused PTO when the employer's policy promises payout.
Am I owed overtime even though my employer calls me exempt or a contractor?
Possibly. The federal FLSA requires time-and-a-half past 40 hours unless a genuine exemption applies, and Arizona's minimum wage, which adjusts annually and sits above the federal floor, governs every non-exempt hour. Job titles do not decide either question; misclassification as exempt, or as a 1099 contractor, is how both get underpaid.
Do I need a lawsuit, or can I file with the Industrial Commission?
For smaller amounts, maybe not. The Industrial Commission of Arizona handles wage claims up to $5,000 through an administrative process that is fast and low-cost for a straightforward shortage. A lawsuit tends to be the better route when the amount is larger, the facts are contested, or treble damages and related claims like retaliation are in play.
My employer keeps saying they will pay me eventually. Should I wait?
No. Eventually has no legal meaning, and every month burns limitations period you cannot get back. Arizona law fixes when wages are due, and a written demand that cites the treble exposure usually clarifies an employer's timeline. Firing you for asking is retaliation, a separate claim.
What it costs
No fee unless you recover.
Asking costs nothing. If you engage Blueshoe on a contingency basis, the fee is a percentage of what is recovered, stated in a written engagement agreement, and nothing is owed if there is no recovery. Case costs, such as filing fees and records, are set out in the same agreement, including whether they come out before or after the fee is calculated.
- Free to ask
- Written assessment before any fee
- Engagement terms in writing
- No billable hours
Questions people ask
Yes, and it is short enough to matter. Limitations periods for wage claims in Arizona run from when the wages were due, and the Industrial Commission has its own filing window. The assessment calendars yours from your dates; do not wait on a promise.
More under Employment
- Misclassified as contractorA 1099 does not decide whether you were an employee.Read more
- Wrongful terminationArizona is at-will, but the Arizona Employment Protection Act makes some firings unlawful: retaliation, refusing to break the law, breach of contract.Read more
- Layoff rightsFinal pay timing, the federal WARN Act's 60-day notice for larger layoffs, COBRA, unemployment, and the severance release you are being asked to sign.Read more
Related
Where else to read
Legally reviewed by Catherine O’Grady, State Bar of Arizona No. 011647
Managing partner & chief compliance officer · 30+ years in practice · Reviewed 2026-10-08 · Full bio →