labor lawAdivision of labor law center

Here’s late-breaking news on the Arizona minimum wage.

It appears that the recent hike in Arizona minimum wage rates applies to all employees, including those with disabilities. On March 29, 2007, the Industrial Commission of Arizona (ICA) issued a substantive policy statement.

The state says unequivocally that workers with disabilities are entitled to the Arizona minimum wage, under the law. The ICA specifically mentions those with developmental, cognitive, mental of physical challenges as covered under the minimum wage. The ICA bases this policy on a strict interpretation of who is considered an “employee” under the law. According to the ICA, it lacks the authority to address payments to non-employees. Under the law, every employee must be paid at least $6.75 per hour.

As you may remember, earlier this year, the Arizona Attorney General issued an opinion saying that under the law, it appeared that individuals with disabilities were entitled to the minimum wage.

This policy statement by the ICA will remain in effect as long as needed, to assure that disabled workers are paid at least the minimum wage. The ICA does leave one opening in the statement. It says that if issues arise that “were not contemplated or are not addressed in this policy statement,” they be brought to the attention of the ICA as soon as possible.

On behalf the Commission, we wish to thank all of those that have participated and provided their assistance in this process. Your help and assistance in developing a workable substantive policy statement has been invaluable.

The ICA admits that in some cases where no employee/employer relationship exists, such as in sheltered workshops, disabled workers may be paid a stipend. Any such stipend would fall outside the ICA’s jurisdiction. However, the statement emphasizes that where disabled workers are employees, they are covered by the state minimum wage.

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