Ariz. Admin. Code § 6-3-50500

Current through Register Vol. 30, No. 43, October 25, 2024

Section R6-3-50500 - Wages (v L 500)

A. General (V L 500.05)

1. A leaving because of dissatisfaction with wages usually involves one of the following situations. For a discussion of specific wage issues refer to the indicated section of these policy rules.

Agreement concerning wages (R6-3-50500(B))

Failure or refusal to pay (R6-3-50500(C))

Piece rate or commission basis (R6-3-50500(F))

Prevailing wage (R6-3-50500(G) )

Reduction in rate of pay (R6-3-50500(H))

2. A worker is generally aware of the rate of pay prior to accepting a job. If he accepts employment at a specified wage, he cannot thereafter establish good cause for leaving because he becomes dissatisfied with his wages. This is true even though his rate of pay is substantially below prevailing for similar work. Good cause for leaving can be shown only if the rate of pay is below the legal minimum.

3. A worker who leaves because of dissatisfaction with his wage must make a reasonable effort to adjust his grievance prior to quitting in order to establish good cause.

B. Agreement concerning wages (V L 500.1)

1. An agreement concerning wages shall be considered to exist when a worker was informed about his rate of pay or failed to make an attempt to ascertain his wage rate when he accepted a job, and the worker is bound by the agreement. The wage agreement is no longer binding upon him, however, if the employer changes other conditions of employment sufficiently to constitute "new work". See R6-3-50315.

2. When an agreement concerning wages exists, a worker who leaves work solely because of dissatisfaction with the wage rate shall be disqualified for voluntarily leaving without good cause unless his rate of pay is below the legal minimum.

3. If the employer failed to inform the claimant of his rate of pay as requested at the time of hire, or the claimant is misinformed about his wage rate by an employment agency or agent, good cause for leaving may be established, if

a. The rate of pay makes the work unsuitable in accordance with R6-3-53500(B); and

b. He took action to adjust his grievance immediately upon learning the actual wage rate.

4. The employer's failure to abide by a wage agreement does not necessarily establish good cause for leaving work. See R6-3-50500.H.

C. Failure or refusal to pay (V L 500.3)

1. A claimant would have good cause for quitting if the facts clearly establish that his employer willfully refused to pay him wages that were actually due, provided that he first made a reasonable attempt to adjust his grievance.

2. A worker has the right to receive his wage in the proper amount and when due. It would be unreasonable to expect him to continue working unless he is reasonably certain of being paid for his services. Thus a claimant would leave with good cause connected with his work; when:

a. The employer is repeatedly late paying his wages;

b. The claimant is repeatedly paid with checks drawn on insufficient funds even if restitution is made.

3. Isolated instances of late payment of wages, or payment of wages with a bad check when prompt restitution is made will not establish good cause for leaving.

4. A worker who quits because his employer deducts certain amounts from his wages to cover shortages, breakages, etc., leaves without good cause connected with the work if such deductions were made pursuant to a prior agreement, even though the claimant may not be at fault, provided the size of the deduction is reasonable. It would be unreasonable for an agreement or contract to require a deduction greater than 25% of a claimant's net wages from a single paycheck.

5. In the absence of a prior agreement between the claimant and the employer permitting such deductions, leaving with good cause in connection with the work will depend upon whether the employer has acted reasonably. If the facts establish that the claimant is guilty of willful or culpable negligence in connection with the cash shortages or breakage which lead to the deduction, the employer is considered to have acted reasonably, provided the size of the deduction is reasonable. It would be unreasonable for an employer to deduct more than 25% of a claimant's net wages from a single paycheck.

6. For the purposes of this regulation, net wages means gross wages less mandatory deductions.

7. If the employer makes deductions for shortages or breakage not authorized by the prior agreement, and the facts do not establish that the claimant is guilty of either willfulness or negligence, a claimant would have good cause for quitting unless the employer had refunded the deduction.

D. Increase refused (V L 500.4). A worker who quits solely because his employer has refused to grant him a pay increase leaves work voluntarily without good cause in connection with his employment, unless:

1. He had been assigned more responsible duties normally carrying a higher rate of pay for longer than a temporary short period of time; and

2. He attempted to adjust his grievance before leaving.

E. Living or low wage (V L 500.45). When a claimant has left his employment because of low wages or because he contends his wages do not constitute a living wage, the adjudicator should give first consideration to the prevailing rate R6-3-50500(G), and if applicable to piece rate or commission R6-3-50500(F).

F. Piece rate or commission (V L 500.65)

1. In resolving separation issues for commission or piece rate worker's the adjudicator must determine whether the claimant left his job because he was personally unsuccessful, or because the employer's requirements or the conditions of work provided by the employer would have caused the average worker with proven ability to be unsuccessful.

2. Generally, at the time of hire the employer will provide the commission or piece rate worker with a reasonable approximation of the amount of wages he can expect to earn while on the job. If the employer entices a worker to accept employment by quoting completely unrealistic potential earnings, or providing misleading wage information, and the worker's actual wages are disproportionately low, he would have good cause for leaving.

3. An employer will be considered to have furnished misleading wage information when he indicates that the worker can expect to earn more than 10% in excess of the average wage of the other employees doing the same work on the same basis as the claimant.

4. A worker's wages will be considered disproportionately low, if, after giving the work a fair trial, his average weekly earnings are substantially below the average weekly wage of his employer's other workers. The adjudicator will consider only those workers who did the same type of work and were paid on the same basis as the claimant. The period of time on which this average is based should as nearly as possible include a full cycle of the employer's business to avoid distortions created by seasonal fluctuations.

5. The commission or piece rate worker would leave for compelling personal reasons not attributable to the employer; if

a. The employer provides the worker with a reasonable appraisal of the amount of wages he can expect to earn on the job but the worker's wages are disproportionately low because of personal inability to produce or sell; or

b. The employer did not discuss potential earnings with the worker before hire, or the adjudicator is unable to determine the approximate wages discussed, and his wages are disproportionately low.

6. The worker leaves voluntarily without good cause when it is established that his low earnings are a result of his failure to:

a. Devote necessary time and effort to his work; or

b. Follow reasonable instructions of his employer; or

c. Give the work a fair trial.

7. Determining if a worker devoted the necessary time and effort to a job or if he failed to follow reasonable instructions of his employer should not be unduly difficult. However, a determination as to whether a worker has given the work a "fair trial" is sometimes difficult. Several factors must be considered, such as:

a. Whether the claimant had actual or related experience in the type of work before accepting the job. Generally, the more extensive the prior experience, the shorter the time necessary to achieve success in the new job.

b. The length of time required to attain proficiency, or to develop contacts or leads necessary to result in average earnings in the occupation. For example, selling appliances may require much less time in developing leads than selling insurance.

c. The financial strain which would have been created for the claimant had he attempted to continue. For example, 2 or 3 months with little or no income would create an impossible situation for many workers even though they might have achieved success within 6 months.

G. Prevailing wage (V L 500.7). A claimant who leaves work solely because his wage is below the prevailing wage shall be disqualified for voluntarily leaving without good cause in connection with the work if he agreed to the wage when he accepted the job unless his rate of pay is below the legal minimum.

H. Reduction in wages (V L 500.75)

1. General (V L 500.751). Under the ordinary employment relationship, there is neither an express nor implied agreement that the employer will not reduce wages.

2. A claimant who quits solely because his wages were reduced shall be disqualified for leaving work voluntarily unless he attempted to adjust his grievance prior to leaving and:

a. The wage rate is reduced to an amount which is below the legal minimum, or which would make the work unsuitable in accordance with the refusal of work portion of these rules; or

b. The employer arbitrarily reduced the wages as a means of discriminating against the worker, even though the reduced wage is not below the prevailing rate. Arbitrarily reduced means the reduction was substantial or disproportionate and not generally applied.

Ariz. Admin. Code § R6-3-50500

Former Rule number -- Voluntary Leaving 500. - 500.751. Former Rule repealed, new Section R6-3-50500 adopted effective January 24, 1977 (Supp. 77-1). Amended effective February 15, 1978 (Supp. 78-1).