Arizona Revised Statutes

Ariz. Rev. Stat. § 23-354 (2026)

Preference of wages in insolvency proceedings or upon death of employer

✓ current as of May 2026
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A. In assignments of property for benefit of creditors or in proceedings in insolvency, the wages of salesmen, clerks or laborers employed by the debtor or insolvent, to the amount of two hundred dollars each for services rendered within sixty days previous to such assignment or insolvency proceedings, are preferred claims and shall be paid by the trustee, receiver, or assignee before any other creditor is paid.

B. Upon the death of an employer, such wages of such employees rank in priority next after the funeral expenses, expenses of the last sickness, the charges and expenses of administering upon the estate and the allowance to the surviving spouse and infant children, and shall be paid before any other claims against the estate of the deceased person.

Notes of Decisions
Cited in 2 cases (1 in the last 5 years), 2008–2024 · leading case: Warne Investments, Ltd. v. Higgins, 195 P.3d 645 (Ariz. Ct. App. 2008).
Warne Investments, Ltd. v. Higgins, 195 P.3d 645 (Ariz. Ct. App. 2008). · cites it 4× “9 *196 ¶ 40 Higgins argues that the salary payments should not be considered under the trust fund doctrine because they are preferred payments under A.R.S. § 23-354. That statute, however, applies only to “the wages of salesmen, clerks or laborers .”
Barrons v. Smallwood (D. Ariz. 2024). · cites it 2× “But trebling of damages is already mandatory for AMWA claims pursuant to A.R.S. § 23-354(G) (“Any employer 27 who fails to pay the wages or earned paid sick time required under this article shall be required to pay the employee the balance of the wages or earned paid sick time…”
— Ariz. Rev. Stat. § 23-354(A) — 1 case
Warne Investments, Ltd. v. Higgins, 195 P.3d 645 (Ariz. Ct. App. 2008). “9 *196 ¶ 40 Higgins argues that the salary payments should not be considered under the trust fund doctrine because they are preferred payments under A.R.S. § 23-354. That statute, however, applies only to “the wages of salesmen, clerks or laborers .”
— Ariz. Rev. Stat. § 23-354(G) — 1 case
Barrons v. Smallwood (D. Ariz. 2024). “But trebling of damages is already mandatory for AMWA claims pursuant to A.R.S. § 23-354(G) (“Any employer 27 who fails to pay the wages or earned paid sick time required under this article shall be required to pay the employee the balance of the wages or earned paid sick time…”
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