Keeping records on wages paid

Dear M & M: What record-keeping am I required to keep for wages that I paid to my employees and how long do I need to keep these records?

— Dan

Dear Dan: Unless otherwise exempted from the recordkeeping requirements, employers subject to Arizona’s minimum wage laws are required to keep records that employers generally maintain in their ordinary business practice, and track records required under the Federal Fair Labor Standards Act.

Specifically, employers are required to maintain payroll records showing the hours worked and wages paid, including basic time and earning cards or sheets, wage rate tables, records of additions to or deductions from wages paid and any written agreement relied upon to calculate credits toward the minimum wage.

Separate recordkeeping requirements are permitted for employees on fixed schedules and employees who are compensated on a salary basis at a rate that exceeds the minimum wage required under the Fair Wages and Healthy Families Act and who, under The Federal Fair Labor Standards, are an exempt bona fide executive, administrative, or professional employee, including an employee employed in the capacity of academic administrative personnel or teachers in elementary or secondary schools, or in outside sales. An employer is required to keep records as required by Arizona’s minimum wage laws for four years. An employer who violates The Fair Wages and Healthy Families Act’s recordkeeping and posting requirements is subject to a civil penalty of at least $250 for the first violation and at least $1,000 for each subsequent or willful violation. Special monitoring and inspections may also be imposed.

Additionally, if an employer fails to maintain required records, it will be presumed that the employer did not pay the required minimum wage or earned paid sick time in a disputed case. An employer has the right to rebut this presumption with evidence that the employer paid the employee the required minimum wage. The Industrial Commission of Arizona is the state agency one can refer questions to in regards to minimum wage laws in Arizona.

Their web site is:  https://www.azica.gov/  Source: Industrial Commission of Arizona.

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