AZ HB2438

Requires public employers to obtain advance express written or electronic authorization from employees annually before deducting any third-party payments from paychecks, effective October 1, 2013.

Limits the scope of the original law by applying restrictions only to public employers (entities that primarily rely on tax revenues), removing the previous application to private employers.

Exempts specific deduction types from authorization requirements, including health care benefits, retirement benefits, taxes, segregated fund contributions, and deductions required by law (with annual notice).

Allows employees to rescind deduction authorization by providing written notice of resignation from the associated organization, with employers having one pay period to process the rescission.

Imposes civil penalties of at least $10,000 per violation on public employers that knowingly violate the deduction authorization requirements, with penalties deposited in the state general fund.