An employer can have employees sign agreements that they will repay money when shortages occur (e.g., through misappropriation, theft, etc.). However, the amount of repayment cannot reduce an employee's compensation below the minimum wage. An employee cannot, by agreement with his employer or otherwise, waive his or her right to the minimum wage under the Fair Labor Standards Act.

Under the Fair Labor Standards Act, the following general rules apply for the employment of minors below the age of 18.

1. The employment of minors under the age of 14 is forbidden. Exceptions to the rule include minors working for a parent who is the sole proprietor of a business, and minors working as actors or as newscarriers.

2. Minors age 14 and 15 may work outside of school hours, but only in non-hazardous jobs.

3. Youths 16 or 17 are not subject to any limitations on the number of hours per day or week that they may work. However, they are prohibited from working on jobs considered to be hazardous.

With regard to the withholding of wages, Arizona Law (A.R.S. § 23-352) states that an employer may not withhold any portion of an employee's wages unless one of the following applies:

1. The employer is required to do so by state or federal law (e.g., taxes or FICA withholding)

2. The employer has prior written authorization from the employee (e.g., payment for lost tools or equipment or for purchases made from the employer); or

3. There is a reasonable, good faith doubt as to the amount of wages due, including the amount of counterclaim, reimbursement, recoupment, or setoff against the employee. This last situation permits an employer to withhold a terminated employee's final paycheck until all property belonging to the employer is returned.

For more information about the Fair Labor Standards Act visit the U.S. Department of Labor online.