Arizona Legislature mandates new employer requirements for employee breaks and overtime pay

On January 22, 2025, the Arizona State Legislature introduced House Bill 2502, a significant piece of legislation aimed at enhancing labor standards for employees across the state. The bill seeks to amend Title 23 of the Arizona Revised Statutes by adding Section 23-207, which outlines specific employer requirements regarding employee breaks and overtime pay.

The primary provisions of House Bill 2502 mandate that employers provide a thirty-minute unpaid meal break for employees working more than five hours in a day, with an additional thirty-minute break for those working over twelve hours. Furthermore, the bill stipulates that employees are entitled to a paid ten-minute rest break for every four hours worked. In terms of overtime compensation, the bill proposes that employees receive one and a half times their regular pay for hours worked beyond eight but up to twelve in a workday, as well as for the first eight hours worked on the seventh consecutive day of a workweek. For hours exceeding twelve in a workday or eight on the seventh consecutive day, employees would earn double their regular pay.

The introduction of this bill has sparked notable discussions among lawmakers and stakeholders. Proponents argue that the legislation is essential for improving worker rights and ensuring fair compensation, particularly in industries where long hours are common. Critics, however, express concerns about the potential financial burden on small businesses and the implications for employment practices in the state.

The bill also reaffirms the applicability of the Fair Labor Standards Act of 1938 to employers with annual sales exceeding $100,000 or those engaged in interstate commerce, thereby aligning state regulations with federal standards.

The implications of House Bill 2502 could be far-reaching, potentially reshaping labor practices in Arizona. Experts suggest that if passed, the bill may lead to increased operational costs for businesses, which could, in turn, affect hiring practices and wage structures. Conversely, advocates believe that improved labor standards could enhance employee morale and productivity, ultimately benefiting the economy.

As the legislative process unfolds, stakeholders will be closely monitoring debates and amendments to House Bill 2502, with its future outcomes likely to influence Arizona's labor landscape significantly.