industrial commission; wages; adjudication

Plain English Breakdown

Checked against official source text during the last sync.

Industrial Commission; Wages; Adjudication

This bill allows the Industrial Commission of Arizona to investigate and decide cases about overtime wage violations.

What This Bill Does

• Gives the Industrial Commission of Arizona (ICA) the power to look into and make decisions on cases where employers do not pay workers for extra hours worked as required by law.
• Requires employees to file a complaint with the ICA within one year after they think their employer did not pay them correctly for overtime work.
• Tells the ICA to create rules about how complaints are filed, how investigations happen, and what happens during hearings.

Who It Names or Affects

• Employees who have worked extra hours but were not paid properly by their employers.
• Employers who might be accused of not paying overtime wages correctly.
• The Industrial Commission of Arizona which will handle these cases.

Terms To Know

Industrial Commission

A government agency that handles labor issues in Arizona, including wage disputes.

Overtime Wage

Extra pay for working more than the standard number of hours per week as set by law or agreement between an employer and employee.

Limits and Unknowns

• The bill does not specify what happens if an employee files a complaint after one year.
• It is unclear how this new rule will affect existing federal laws about overtime pay.

Official Summary Text

HB2744 - 572R - House Bill Summary

ARIZONA HOUSE OF REPRESENTATIVES

57th
Legislature, 2nd Regular Session

Majority Research Staff

House
: COM DP 10-1-0-0

HB
2744
: industrial commission; wages; adjudication

Sponsor:
Representative Rivero, LD 27

House
Engrossed

Overview

Authorizes
the Industrial Commission of Arizona (ICA) to investigate and adjudicate
matters related to overtime wage pay violations.

History

The
Fair Labor
Standards Act
(Act) authorizes the U.S. Department of Labor
(USDOL) to investigate and supervise the payment of unpaid wages or unpaid
overtime compensation owing to any employee. The Act mandates that employees
covered by the Act must receive overtime pay for hours worked over 40 in a
workweek at a rate not less than time and one-half their regular rates of pay.
The Act specifies that there is no limit on the number of hours employees aged
16 and older may work in a workweek and is applied on a workweek basis. The
Wage and Labor Division
of the USDOL is the
primary agency responsible for enforcing overtime laws under the Act.

If an employer fails to pay the wages due to the employee,
the employee may recover in a civil action against an employer an amount that
is treble the amount of the unpaid wages. Alternatively, an employee may file a
written claim with the ICA for unpaid wages against an employer if the amount
of such wages does not exceed $12,000 and if such claim is filed within one
year of the accrual of such claim. The ICA, on behalf of an employee, may
obtain judgment and execution, garnishment, attachment or other available
remedies for collection of unpaid wages established by the department's final
determination (A.R.S. ��
23-355
,
23-356
).

Provisions

1.

Authorizes the
ICA to investigate and adjudicate matters related to overtime wage pay
violations. (Sec. 1)

2.

Requires an
employee to file a complaint with the ICA within a year of the occurrence of
the alleged violation. (Sec. 1)

3.

Requires the
ICA to adopt rules governing the complaint process and investigation
procedures. (Sec. 1)

4.

Prescribes
the ICA's authority in overseeing overtime wage adjudication cases. (Sec. 1)

5.

Preserves an
employee's ability to pursue other legal remedies. (Sec. 1)

6.

Defines
commission,
employee
and
overtime wage.
(Sec. 1)

7.

8.

9.

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10.

Initials PB���������������������� HB
2744

11.

2/5/2026��� Page 0 House
Engrossed

12.

13.

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FOOTER ---------

Current Bill Text

HB2744 - 572R - H Ver

House Engrossed

industrial
commission; wages; adjudication

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HOUSE BILL 2744

AN
ACT

amending title 23, chapter 1, article 1,
arizona revised statutes, by adding section 23-111; relating to the
industrial commission of arizona.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it
enacted by the Legislature of the State of Arizona:

Section 1. Title 23, chapter 1, article 1,
Arizona Revised Statutes, is amended by adding section 23-111, to read:

START_STATUTE
23-111.

Commission; investigation; overtime wage; employers; rules;
definitions

A. The commission may investigate and
adjudicate matters that are related to overtime wage pay violations.

B. An employee shall file a complaint
with the commission not more than one year after the alleged violation
occurred.

C. The commission shall adopt rules
that provide all of the following:

1. The process on how an employee or
the employee's authorized representative shall file a COMPLAINT.

2. How an employer will receive
notice of the complaint from the commission.

3. The time frames related to
response periods.

4. The commission's investigation
procedures.

D. The commission may do any of the
following in an overtime wage adjudication case:

1. Administer oaths and affirmations.

2. Issue subpoenas.

3. Compel the attendance of
witnesses.

4. Compel the production of records.

5. Conduct hearings under oath.

6. Issue determinations
pursuant to section 44-1201 that include an order for the payment of
wages that are owed, including interest.

E. This section does not prevent an
employee from seeking other remedies at law.

F. For the purposes of this section:

1. "Commission" means the
industrial commission of Arizona.

2. "Employee" has the same
meaning prescribed in section 23-493.

3. "Overtime wage":

(
a
) means wages
that are owed for hours worked in excess of the statutory workweek as defined
in 29 Code of Federal Regulations section 778.105.

(
b
) Includes
premium pay
as agreed on by the employee and employer,
but not less than one hundred fifty percent of the base rate of pay.
END_STATUTE