How Minimum Wage Increases Affect Tipped Employees In Arizona

by / on behalf of the firm | Jun 3, 2022 | Employment Law

In 2016, Arizona voted in favor of Proposition 206 to not only increase minimum wage each year, but also guarantee benefits like paid sick time. For most 9-5’ers this is a pretty black and white adjustment, but for service industry workers and other tipped employees, this can be a bit more complicated. 

As a tipped employee, it’s imperative you keep track of the annual minimum wage increases and your current hourly rate. If your hourly rate falls below the minimum wage, your employer is legally bound to pay you the difference. This is also the case if you’re being asked to do work outside of your role that does not directly contribute to your tips. 

You should know that if you’re on the clock as a tipped employee and constantly being asked to do work that is not “tip producing work” (i.e. your job or related side work) your employer may be taking advantage of your low wage. Believe it or not, there are laws in place to make sure that you are being paid fairly for your hard work and making at least minimum wage at all times. 

If you think your employer is taking advantage of your hourly wage, or is not paying you the legal minimum, you should consult with an employment lawyer to see what your options are. You don’t have to defend yourself or take this on alone. An experienced employment lawyer is not only knowledgeable about state law but will defend your rights as a hard working employee and get you the money you deserve. 

Minimum Wage For Tipped And Non-Tipped Employees in Arizona

As of January 2022, the minimum wage in Arizona is $12.80 per hour for all non-tipped employees. Unfortunately, whether you’re a tipped employee or not has a big impact on your hourly rate. If you are receiving tips for your hard work, your employer only needs to prove you’re consistently earning above minimum wage to claim a tip credit to reduce your hourly wage. 

For example, the hourly rate for tipped employees is only $9.80. This means that as long as you are regularly earning an extra $2 per hour in tips, your employer does not have to pay you the legal minimum of $12.80 per hour. Sadly, because of the lower hourly rate, this also means tipped employees are the most likely to be exploited. As a tipped employee, you should always track your hourly earnings and make sure you’re not falling below the minimum. Not only should you be keeping record of your hourly rate but also the kind of work you’re performing on the clock. The Department of Labor has specific laws and regulations in place to make sure you’re being paid fairly no matter what kind of work you’re doing. The D.O.L. refers to this as tip producing work and non-tip producing work. 

What is Tip Producing Work vs Non-Tip Producing Work 

Tip producing work is work that is directly related to your job and ability to earn tips. For example taking orders as a server, making drinks as a bartender, doing a manicure as a nail technician and any related side work like rolling silverware, stocking glasses, or cleaning your workstation. Non-tip supporting work, on the other hand, is performing duties outside your role, such as, cleaning hotel rooms as a valet, cleaning bathrooms as a server, or ordering shop supplies as a receptionist. 

Known as the 80/20 rule, if you’re being asked to perform non-tip supporting work for more than 30 minute durations, or exceeding more than 20% of your total weekly hours, according to the Department of Labor, you are entitled to the full minimum wage pay. 

If you have kept accurate and detailed records of the work you performed, you should first speak with your manager or HR department. If that doesn’t resolve the issues, then contact a specialized employment lawyer immediately. 

How and Arizona Employment Lawyer Can Help Your Case

The employment lawyers at Hernandez Law Firm should be your go to for anything related to discrimination, harassment, equal and fair pay, and other discrepancies in the work place. They have the experience and specialized knowledge to defend your case and protect your rights as an Arizona employee. 

Equal Pay Issues In The Workplace

by / on behalf of the firm | Mar 3, 2022 | Employment Law

Even if you aren’t a soccer fan, you may have seen the women’s soccer team make history once again, but this time for a different reason. They won a lawsuit against the soccer federation claiming they were paid less than their male colleagues for working the same job, violating what’s known as Equal Pay. If the idea of women getting paid less than men for doing the same job seems confusing and illegal, it is. The Equal Pay Act has been around for almost 60 years which means no one should be paid less or more based on their sex alone. Despite that being the case, according to recent surveys women are still paid less than their male colleges. 

Handling descrimination cases requires skill, experience and tact. Since Arizona is an “at-will” state, you may fear being wrongfully terminated for investigating pay gaps, and discrimination in the work place. If you feel that you are being discriminated against or paid unfair wages, let a specialized Arizona employment lawyer handle your case. They can guide you on how to collect evidence to help build and win your lawsuit. 

The Equal Pay Act

Legally speaking, the Equal Pay Act was passed in 1963 which means any disparity in pay based on sex alone, should have been rectified long ago. If that were the case, however, the women’s soccer team would not have success in their lawsuit. 

The Equal Pay Act states that employers are not allowed to pay employees different wages based on sex alone, also known as sexual discrimination. Most basically that means, equal pay for equal work. Unfortunately, as with many things, loopholes exist and it seems that law isn’t always being upheld. Though the wage gap between men and women is closing, as of 2020, women are purportedly paid around 80 cents per dollar compared to their male co-workers. 

What to do if You Think You’re Being Paid Less Based on Your Sex

Determining if your employer is engaging in sexual decriimination is very complicated. Here are some things you can do to gather evidence to help build your case. 

• Discreetly gather salary information from your co-workers (men and women)
• Document everything
• Determine without a doubt if sexual decrimination is occuring
• Follow any procedures outlined by your HR department for pursuing discrimincation
• Speak with your manager and escalate the issue if they don’t rectify the problem
• Contact a lawyer if it doesn’t get resolved

Equal Pay and At-Will Work State

Arizona is an ‘at-will’ work state which means both employees and employers have the legal right to terminate employment for any reason that doesn’t violate civil rights. However, regardless of if your employment is at-will, your right to equal pay for equal work is still legally protected. If you’re being paid less than you should, instead of quitting and finding another job (where likely you could run into the same issue), demand equal pay and follow legal actions if your employer refuses. If you suddenly get terminated while you’re openly investigating work place discrimination, you can also sue for wrongful termination. 

It may be hard to believe that in 2022, men and women are compensated differently for doing the same work, but as the women’s soccer team has legally determined, it still very much happens. Don’t let yourself be a victim of sexual discrimination in the work place for fear of retaliation or termination. If you’re unable to get the equal pay you deserve on your own, contact a knowledgeable and experienced Arizona employment lawyer immediately.