ARIZONA HOUSE OF REPRESENTATIVES
HB 2523: youth employment
PRIME SPONSOR: Representative Grantham, LD 12
BILL STATUS: Regulatory Affairs
Overview
Allows an employer to pay a wage equal to or greater than the federal minimum wage if the employee
meets certain requirements.
History
The current federal minimum wage is $7.25 (Fair Labor Standards Act).
A.R.S. § 23-363 outlines the state minimum wage and prohibits employers from paying their
employees less than $11 as of January 1, 2019 and $12 as of January 1, 2020. For any employee who
customarily and regularly receives tips or gratuities, an employer may pay a wage up to $3.00 per
hour less than the minimum wage. The employer must be able to establish that when adding tips
received to wages paid, the employee received no less than the minimum wage for all hours worked.
Employment of individuals under the age of 16 must be confined to:
a. No more than 40 hours a week when not enrolled in a session of school or when school is not
in session;
b. No more than 18 hours a week when enrolled in any session of school when school is in
session;
c. No more than eight hours a day when not enrolled in a session of school or on a day when
school is not in session; and
d. No more than three hours a day when enrolled in any session of school on a day when school
is in session. (A.R.S. 23-233(A))
Provisions
1. Allows an employer to:
a. Pay a wage equal to or greater than the federal minimum wage; and
b. Negotiate other terms and conditions of employment, consistent with state and federal law,
with employees who are:
i. Under 22 years of age;
ii. Employed on a casual basis; and
iii. Enrolled as a full-time student. (Sec. 3)
2. Exempts individuals who meet the aforementioned criteria from certain statutory requirements
related to permissible hours of labor for individuals under the age of 16. (Sec. 2)
3. Defines casual basis as employment that either:
a. Does not exceed 20 aggregate hours per week; or
b. Exceeds 20 hours per week if the excessive hours are irregular or for intermittent periods.
(Sec. 1)
4. Makes technical and conforming changes. (Sec. 1,2)

☐ Prop 105 (45 votes)
Fifty-fourth Legislature
First Regular Session

☐ Prop 108 (40 votes)

☐ Emergency (40 votes)

☐ Fiscal Note

HB 2523
Version 1: Regulatory Affairs