WAGE AND HOUR DEMAND LETTER
State of Arizona
Fair Labor Standards Act and Arizona Wage Law Claims
[ATTORNEY/FIRM LETTERHEAD]
[Firm Name]
[Address Line 1]
[City, Arizona ZIP]
Tel: [Phone Number]
Fax: [Fax Number]
[Attorney Email]
[State Bar of Arizona Number]
VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND VIA EMAIL TO: [recipient_email]
[Date]
[Employer Contact Name]
[Title]
[Company Legal Name]
[Company Address]
[City, State ZIP]
Re: Wage and Hour Violations - [Client Full Name]
Demand for Unpaid Wages Under FLSA and Arizona Law
CONFIDENTIAL SETTLEMENT COMMUNICATION PURSUANT TO FRE 408 and A.R.E. 408
Dear [Mr./Ms./Mx. Last Name]:
This firm represents [Client Full Name] regarding claims for unpaid wages against [Company Legal Name] arising from violations of the Fair Labor Standards Act ("FLSA"), 29 U.S.C. Section 201 et seq., the Arizona Minimum Wage Act, A.R.S. Section 23-362 et seq., and the Arizona Wage Payment Act, A.R.S. Section 23-350 et seq.
I. ARIZONA-SPECIFIC LEGAL FRAMEWORK
A. Arizona Wage and Hour Requirements
Arizona's Proposition 206 (Fair Wages and Healthy Families Act, 2016) established minimum wage requirements that exceed federal law.
Key Requirements:
| Category | Arizona Requirement | Citation |
|---|---|---|
| Minimum Wage | $14.70/hour (2026) | A.R.S. Section 23-363 |
| Overtime | 1.5x after 40 hours/week (FLSA only) | 29 U.S.C. Section 207 |
| Tipped Minimum | $11.70/hour ($3.00 tip credit max) | A.R.S. Section 23-363(C) |
| Pay Frequency | At least twice per month | A.R.S. Section 23-351 |
| Final Pay (Fired) | Within 7 working days or next regular payday | A.R.S. Section 23-353 |
| Final Pay (Quit) | Next regular payday | A.R.S. Section 23-353 |
| Earned Paid Sick Time | 1 hour per 30 hours worked | A.R.S. Section 23-372 |
B. Arizona Minimum Wage Act (Prop 206)
Key Features:
- Annual inflation adjustment (increases each January 1)
- Applies to ALL Arizona employees (broader than FLSA)
- No small business exemption
- Includes earned paid sick time provisions
Tipped Employee Rules:
| Requirement | Arizona Standard |
|---|---|
| Minimum cash wage | $11.70/hour (2026) |
| Maximum tip credit | $3.00/hour |
| Total must equal | $14.70/hour minimum |
| Written notice required | Yes |
| Tips must bring to minimum | Employer must make up difference |
C. Arizona Wage Payment Act
Payday Requirements (A.R.S. Section 23-351):
- Employers must designate at least two paydays per month
- Paydays must be no more than 16 days apart
- Wages must be paid within 5 days after end of pay period
Final Pay Requirements (A.R.S. Section 23-353):
| Termination Type | Timing |
|---|---|
| Involuntary (fired) | Within 7 working days OR next regular payday, whichever is sooner |
| Voluntary (quit) | Next regular payday |
| Layoff/seasonal end | Within 7 working days OR next regular payday |
D. Statute of Limitations
| Claim Type | Limitations Period | Citation |
|---|---|---|
| Arizona minimum wage | 2 years | A.R.S. Section 23-364(G) |
| Arizona wage payment | 1 year | A.R.S. Section 23-355 |
| FLSA (standard) | 2 years | 29 U.S.C. Section 255(a) |
| FLSA (willful) | 3 years | 29 U.S.C. Section 255(a) |
E. Penalties and Damages
Arizona Minimum Wage Act Remedies (A.R.S. Section 23-364):
| Violation Type | Remedy |
|---|---|
| Unpaid minimum wage | Full amount owed |
| Liquidated damages | Equal to unpaid wages (double damages) |
| Willful violation | TREBLE DAMAGES (3x unpaid wages) |
| Attorney's fees | Mandatory for prevailing employee |
| Civil penalty | $250+ per violation (to state) |
Arizona Wage Payment Act Remedies (A.R.S. Section 23-355):
| Violation Type | Remedy |
|---|---|
| Unpaid wages | Full amount owed |
| Treble damages | 3x unpaid wages |
| Attorney's fees | Available to prevailing party |
F. Enforcement Mechanisms
Administrative:
- Industrial Commission of Arizona, Labor Department
- File wage claim (no fee)
- Administrative hearing available
- Can recover wages, interest, penalties
Private Right of Action:
- A.R.S. Section 23-364: Minimum wage claims
- A.R.S. Section 23-355: Wage payment claims
- Class actions available under Arizona law
II. INTRODUCTION AND SUMMARY OF CLAIMS
Our client was employed by [Company Short Name] as a [Job Title] from [Start Date] to [End Date / Present] in Arizona. [Company Short Name] violated federal and Arizona wage laws by:
[ ] Failing to pay Arizona minimum wage of $14.70 per hour
[ ] Failing to pay overtime at 1.5 times the regular rate for hours over 40/week
[ ] Misclassifying our client as exempt from overtime
[ ] Misclassifying our client as an independent contractor
[ ] Improperly taking tip credit without meeting requirements
[ ] Failing to pay for all hours worked
[ ] Failing to pay final wages within required timeframe
[ ] Making unlawful deductions from wages
[ ] Failing to provide earned paid sick time under Prop 206
[ ] Retaliating for asserting wage rights under A.R.S. Section 23-364(B)
III. FACTUAL BACKGROUND
A. Employment Relationship
| Category | Details |
|---|---|
| Employee Name | [Client Full Name] |
| Job Title(s) | [Title(s)] |
| Dates of Employment | [Start Date] to [End Date / Present] |
| Work Location(s) | [Address(es) in Arizona] |
| Primary Duties | [Describe job duties] |
| Rate of Pay | $[Amount] per hour |
| Classification | [Exempt / Non-Exempt / Independent Contractor] |
| Pay Frequency | [Semi-monthly / Bi-weekly] |
B. Hours Worked and Violations
[Detail specific violations]
IV. LEGAL ANALYSIS
A. Arizona Minimum Wage Violation (A.R.S. Section 23-363)
Arizona's minimum wage of $14.70/hour applies to virtually all employees working in Arizona, without the interstate commerce requirements of the FLSA. [Company Short Name] failed to pay this rate.
Coverage: The Arizona Minimum Wage Act covers any person who is employed by an employer. A.R.S. Section 23-362(A). This is broader than FLSA coverage.
B. Tip Credit Violation
[If applicable:] To take the tip credit, the employer must:
1. Pay at least $11.70/hour in cash wages
2. Provide written notice of tip credit policy
3. Ensure tips bring total to at least $14.70/hour
4. Not require tip pooling with non-tipped employees
[Company Short Name] failed to comply by [describe violation].
C. Wage Payment Violation (A.R.S. Section 23-351)
[If applicable:] [Company Short Name] violated Arizona wage payment requirements by [failing to pay on time / failing to pay final wages within required period / making unlawful deductions].
D. Willfulness
[Company Short Name]'s violations were willful, entitling our client to treble damages under A.R.S. Section 23-364(G).
V. DAMAGES CALCULATION
A. Arizona Minimum Wage Damages
| Category | Calculation | Amount |
|---|---|---|
| Unpaid minimum wage | [Hours] x $[shortfall] | $[Amount] |
| Tip credit recovery | [Hours] x $[illegal credit] | $[Amount] |
| Base Unpaid Wages | $[Amount] | |
| Treble Damages (willful - 3x) | Base x 3 | $[Amount] |
B. Overtime Damages (FLSA)
| Period | OT Hours | Regular Rate | OT Premium | Total |
|---|---|---|---|---|
| [Period] | [X] | $[X.XX] | $[X.XX] | $[Amount] |
| FLSA Liquidated Damages | $[Amount] |
C. Summary of Damages
| Category | Amount |
|---|---|
| Arizona Minimum Wage Violations | $[Amount] |
| Arizona Treble Damages | $[Amount] |
| FLSA Overtime | $[Amount] |
| FLSA Liquidated Damages | $[Amount] |
| Wage Payment Act Violations | $[Amount] |
| Pre-Judgment Interest | $[Amount] |
| Attorney's Fees (estimated) | $[Amount] |
| TOTAL DAMAGES | $[Amount] |
VI. SETTLEMENT DEMAND
We demand payment of $[Settlement Demand Amount] to resolve all claims.
This demand expires in twenty-one (21) days on [Response Deadline Date].
VII. RESPONSE AND LITIGATION
If not resolved, we will file:
- Complaint in Arizona Superior Court for state wage claims
- Complaint in U.S. District Court for the District of Arizona for FLSA claims
We will seek certification of a class action under Arizona law and a collective action under the FLSA.
VIII. DOCUMENT PRESERVATION
Preserve all time records, payroll records, personnel files, policies, and related documents.
Sincerely,
[Attorney Name]
[State Bar of Arizona No.]
[Firm Name]
ARIZONA-SPECIFIC PRACTICE NOTES
[ ] Prop 206: Arizona minimum wage is significantly higher than federal; check annual adjustments
[ ] Treble Damages: Available for willful minimum wage violations - major leverage
[ ] Earned Paid Sick Time: Prop 206 also requires sick time accrual; related claims may exist
[ ] Anti-Retaliation: Strong protections under A.R.S. Section 23-364(B); separate cause of action
[ ] No State Overtime Law: Arizona relies on FLSA for overtime; no daily OT
[ ] Industrial Commission of Arizona:
- Website: azica.gov/divisions/labor-department
- Phone: (602) 542-4515
- Wage claims: Handles complaints for wages owed