Arizona law permits employers to make deductions from their employees' wages to repay loans made by the employer if the employer has prior written authorization from the employee (AZ Rev. Stat. Sec. 23-352).
Warning: Employers should be extremely cautious in making such deductions. Employees may recover triple the amount of any wages withheld without proper authorization in a legal action against the employer (AZ Rev. Stat. Sec. 23-355).
For additional information, employers may contact:
Arizona Industrial Commission
800 West Washington Street
Phoenix, AZ 85007
2675 East Broadway
Tucson, AZ 85716
Last updated on December 20, 2015.