employee wages;
extraordinary compensation
Title 23, Chapter 7, Arizona Revised Statutes, defines wages to mean nondiscretionary compensation that is due an employee in return for labor or services the employee renders, whether determined by a period of time, for a task or piece, commission or other method of calculation. Per current law, "Wages include sick pay, vacation pay, severance pay, commissions, bonuses and other amounts promised when the employer has a policy or a practice of making such payments." Further, the employer must designate two or more fixed paydays per month, except as outlined in statute. Finally, statute is precise regarding timely payment of wages in the case of a discharged employee as well as one who quit a job or is laid off.
Statute allows the employee to recover in a civil action, treble the amount of the unpaid wages, or the employee may file a claim with the Arizona Labor Department if the unpaid wages total less than $2,500 and the claim is filed within one year of the accrual.
HB 2278 removes severance pay from the definition of wages and provides a definition for extraordinary compensation.