Ariz. Admin. Code § 6-3-1705

Current through Register Vol. 30, No. 49, December 6, 2024

Section R6-3-1705 - Wages

A. "Wages paid" includes both wages actually received by the worker and wages constructively paid. Wages are constructively paid when they are credited to the account of or set apart for an employee so that they may be drawn upon by him at any time although not then actually received. To constitute payment in such cases the wages must be credited or set apart to the employee without any substantial limitation or restriction as to the time or manner of payment or condition upon which payment is to be made, and must be made available to him so that they may be drawn at any time, and their payment brought within his own control and disposition.

B. The name by which the remuneration for employment, or potential employment as provided in subsection (E) of this rule, is designated or the basis on which the remuneration is paid is immaterial. It may be paid in cash or in a medium other than cash, on the basis of piece work or percentage of profits, or it may be paid on an hourly, daily, weekly, monthly, annual or other basis. The remuneration may also be paid on the basis of an estimated or agreed upon amount in order to resolve an issue arising out of an employment or potential employment relationship. Remuneration paid in goods or services shall be computed on the basis of the reasonable cash value of the goods or services at the time of payment.

C. When an employer succeeds to the business or a part of the business of a predecessor employer, wages for employment covered by A.R.S. Title 23, Chapter 4, paid to an individual by the predecessor and reported to the Department shall be used in determining the wages subject to contributions paid to such individual for continued employment by the successor employer.

D. The provisions of subsection (C) of this rule do not apply to an employer for any calendar year for which the employer is liable for payments in lieu of contributions.

E. Wages include payments made to an individual by an employer arising out of an actual or potential employment relationship. Such payments include:

1. An award of unpaid minimum wages or overtime compensation under the Fair Labor Standards Act.

2. An order of the National Labor Relations Board to compensate for the loss of pay.

3. An order of any federal or state agency on account of real or alleged discrimination in hiring, promotion, salary administration or termination in violation of law.

4. A decision of a court or an arbitrator in a dispute over an actual or alleged breach of contract pertaining to wages, hours of work or other conditions of employment.

5. A private agreement between the parties in settlement of any of the above situations in lieu of an award, order or decision.

6. Any other payments made on account of the employment relationship, except those listed in subsection (F) of this rule.

F. Wages do not include:

1. Payments by an employer made to an individual which are identified in an award, order, decision or agreement as exemplary damages or medical expenses.

2. Payment by employers made to a plan exempt under section 501(c)(17) of the Internal Revenue Code of 1986 for the payment of supplemental unemployment benefits.

Ariz. Admin. Code § R6-3-1705

Former Regulation 40-4; Amended effective January 10, 1977 (Supp. 77-1). Amended effective November 4, 1980 (Supp. 80-4). Amended subsections (B) through (F) effective April 30, 1982 (Supp. 82-2). Correction, subsection (D), deleted reference to subsection (F) of this regulation (Supp. 83-3). Former Section R6-3-1705 repealed, new Section R6-3-1705 adopted effective March 16, 1988 (Supp. 88-1).