Arizona's Treble Damages for Wage Violations
Arizona Revised Statutes section 23-364(G) mandates significant penalties for employers who fail to pay minimum wage or earned paid sick time. This provision allows employees to recover not only unpaid wages but also twice that amount in liquidated damages, plus attorney fees and costs. Crucially, there is no good-faith defense available to employers.
Treble Damages Under section 23-364(G)
Surfaces wage exposure under A.R.S. section 23-364(G) — unpaid wages + 2x liquidated damages + attorney fees. No good-faith defense.
What those rules do as an Arizona shift is created.
Teambridge continuously assesses each shift against Arizona's wage laws, including the stringent treble damages provision. This ensures that any potential non-compliance is identified and flagged immediately, before it becomes a costly liability.
Block Underpayment
If a scheduled shift's total compensation falls below the Arizona minimum wage of $15.15/hr (or applicable local minimum wage) or fails to accrue sufficient Earned Paid Sick Time, Teambridge flags the shift as non-compliant, preventing its approval until corrected.
Calculate Treble Exposure
For any identified minimum wage or EPS time violation, Teambridge automatically calculates the potential treble damages exposure: unpaid wages + 2x liquidated damages. This real-time calculation provides an immediate understanding of the financial risk associated with each non-compliant shift.
Flag Attorney Fee Risk
Beyond the direct wage exposure, A.R.S. § 23-364(G) also allows for the recovery of attorney fees. Teambridge flags this additional risk component, emphasizing the comprehensive financial impact of wage violations under Arizona law.
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Arizona Revised Statutes § 23-364(G)
Arizona's Fair Wages and Healthy Families Act, enacted via Proposition 206, includes robust enforcement mechanisms. Section 23-364(G) is particularly critical for employers, outlining the substantial penalties for violations of minimum wage and earned paid sick time provisions.
A.R.S. § 23-364(G): An employer who fails to pay minimum wages or earned paid sick time as required by this article is liable to the employee or the employee's designated beneficiary for the full amount of the unpaid wages or earned paid sick time, plus an additional amount equal to twice the unpaid wages or earned paid sick time as liquidated damages. An employee is also entitled to recover the employee's reasonable attorney fees and costs incurred in the action.
Understanding "Treble Damages"
The term "treble damages" is often used colloquially to describe the penalty under A.R.S. § 23-364(G). While technically structured as "unpaid wages + twice the unpaid wages as liquidated damages," the practical outcome is a payment three times the original underpayment. For example, if an employee is underpaid by $100, the employer would owe $100 in unpaid wages plus $200 in liquidated damages, totaling $300, in addition to attorney fees and costs.
No Good-Faith Defense
A critical aspect of A.R.S. § 23-364(G) is the absence of a good-faith defense. Unlike some federal wage laws where employers can mitigate damages by demonstrating a good-faith belief that their pay practices were compliant, Arizona law offers no such protection. This means that even an unintentional error or a reasonable misunderstanding of the law can result in the full treble damages liability, underscoring the importance of meticulous compliance.
How Teambridge handles Arizona's treble damages.
Teambridge's compliance engine is built to proactively manage complex wage and hour rules like Arizona's treble damages. By integrating these rules at the point of shift creation, we eliminate reactive compliance efforts and provide real-time risk assessment.
Instant Violation Detection
Every time a shift is created or modified, Teambridge's engine immediately checks it against Arizona's minimum wage ($15.15/hr in 2026, adjusted annually) and Earned Paid Sick Time accrual requirements. Any deviation triggers an alert.
Quantifying Exposure
If a violation is detected, Teambridge automatically calculates the potential financial exposure, including the exact amount of unpaid wages, the 2x liquidated damages, and flags the added risk of attorney fees. This provides immediate, actionable data.
Guiding to Compliance
Instead of merely flagging issues, Teambridge provides clear guidance on how to bring a shift into compliance. This might include adjusting pay rates, adding EPS time, or modifying shift durations, ensuring resolution before payroll processing.
Comprehensive Record Keeping
All compliance checks, alerts, and corrective actions are meticulously logged, creating an immutable audit trail. This documentation is invaluable for demonstrating due diligence and defending against potential claims.
People also ask.
What is Arizona's minimum wage in 2026?
As of January 1, 2026, Arizona's statewide minimum wage is $15.15 per hour. This rate is subject to annual adjustments based on the Consumer Price Index (CPI), as mandated by Proposition 206. Local jurisdictions like Flagstaff and Tucson have higher minimum wages, which must also be observed.
Does A.R.S. § 23-364(G) apply to all wage violations?
No, A.R.S. § 23-364(G) specifically applies to failures to pay minimum wages or earned paid sick time as required by the Fair Wages and Healthy Families Act (A.R.S. Article 8, Chapter 2, Section 23-361 et seq.). Other types of wage claims (e.g., unpaid overtime under FLSA, failure to pay final wages) may have different penalty structures.
What are "liquidated damages" in Arizona wage law?
Liquidated damages under A.R.S. § 23-364(G) are a statutory penalty, set at twice the amount of the unpaid wages or earned paid sick time. They are intended to compensate the employee for losses suffered due to delayed payment and to deter employers from violating wage laws. These are distinct from the actual unpaid wages themselves.
Can an employer avoid treble damages if the underpayment was an accident?
No. Arizona law under A.R.S. § 23-364(G) does not provide a "good-faith" defense. This means that an employer is liable for the full amount of unpaid wages plus double liquidated damages, even if the underpayment was an unintentional error or based on a reasonable, but ultimately incorrect, interpretation of the law.
Are attorney fees always awarded to the employee?
A.R.S. § 23-364(G) states that an employee "is also entitled to recover the employee's reasonable attorney fees and costs incurred in the action." This means that if an employee successfully proves a violation of minimum wage or earned paid sick time, the employer will generally be responsible for paying the employee's legal costs.
How does Teambridge help manage this specific risk?
Teambridge embeds A.R.S. § 23-364(G) directly into its compliance engine. This means that as shifts are scheduled and approved, the system automatically checks for minimum wage and EPS time compliance. If a potential violation is detected, it immediately flags the issue and calculates the potential treble damages exposure, allowing employers to correct issues proactively before they escalate to legal claims.