Arizona’s minimum wage increases – The Center Square

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Some Arizona workers will see a slight pay raise this year.

The state’s minimum wage will go from $14.35 to $14.70 an hour, as Arizona law requires it to be based on how inflation impacted the cost of living.

The regular wage hikes began in 2016 after the passage of Proposition 206, in which over 58% of voters decided on the proposal, according to Ballotpedia. It ended up facing legal opposition but it was held up by the state Supreme Court.

The Industrial Commission of Arizona determines the minimum wage, and there are a few exceptions for some small businesses and certain types of jobs, like babysitting.

“The Fair Wages and Healthy Families Act (the “Act”) does not apply to any person who is employed by a parent or a sibling; any person who is employed performing babysitting services in the employer’s home on a casual basis; any person employed by the state of Arizona or the United States government; or any person employed in a small business that grosses less than $500,000 in annual revenue, if that small business is exempt from having to pay a minimum wage under section 206(a) of title 29 of the United States Code,” a poster from the commission states.

In addition, there is an exception for tipped workers who can be paid as low as $11.35 an hour, but the tips must end up being at least minimum wage “for all hours worked.”

The federal minimum wage is $7.25 an hour, and the Grand Canyon State has one of the higher minimum wages nationwide. As it is determined by inflation, some years have seen higher jumps than others. In 2023, the minimum wage jumped $1.05 to $13.85, as the Phoenix Metropolitan Area saw 13% year-over-year inflation at one point in 2022.