Some Arizona workers will receive a slight pay increase this year as the state’s minimum wage is set to rise from $14.35 to $14.70 per hour. This adjustment is a result of Arizona law tying the minimum wage to the impact of inflation on the cost of living.
The implementation of regular wage hikes in Arizona began in 2016 following the approval of Proposition 206, a measure supported by over 58% of voters, according to Ballotpedia. Despite facing legal challenges, the proposition was ultimately upheld by the state Supreme Court.
The Industrial Commission of Arizona is responsible for determining the minimum wage in the state, with certain exceptions granted for specific types of businesses and employment situations. For instance, individuals employed by a parent or sibling, those providing casual babysitting services in an employer’s home, workers for the state of Arizona or the U.S. government, and employees of small businesses generating less than $500,000 in annual revenue – exempted under section 206(a) of title 29 of the United States Code – are not covered by the Fair Wages and Healthy Families Act.
Moreover, tipped workers in Arizona are subject to a lower minimum wage of $11.35 per hour, provided that their tips bring their total earnings to at least the standard minimum wage for all hours worked.
While the federal minimum wage stands at $7.25 per hour, Arizona boasts one of the country’s higher minimum wage rates. The minimum wage in the state is adjusted annually based on inflation, leading to varying increases year by year. In 2023, for instance, the minimum wage rose by $1.05 to $13.85 in response to a 13% year-over-year inflation rate in the Phoenix Metropolitan Area during 2022.
