Minimum wage in Arizon, What is? The state minimum wage in Arizona is set to increase in January. This will affect a lot of businesses in the state.
In Arizona, the minimum wage is based on the Consumer Price Index, which is tracked by the federal Bureau of Labor Statistics. Phoenix-area inflation has been 12.1% for the 12-month period ending in October. The cost of gasoline has dropped sharply.
Minimum wage in Arizona 2023
Beginning January 1, 2023, the new minimum wage in Arizona will be $13.85 per hour for non-tipped employees and $12.00 for tipped employees. The new law also provides that when minimum wage increases due to cost of living or any other statute or law, employers may increase the base wages of their tipped employees by a proportional amount.
The Arizona Office of Economic Opportunity has compiled a report on minimum wage. It shows that most employers in the state are already paying more than the new minimum. However, there are several exemptions from the law.
The City of Flagstaff has passed a local minimum wage law that requires employers to pay their employees no less than the current hourly minimum. The law also prohibits retaliation against workers who file complaints. The Office of Labor Standards enforces the law.
The Flagstaff city council is considering raising the wages of low-income workers. It has a full-time employee who focuses on enforcing the ordinance. It also investigates complaints. If necessary, the office files a lawsuit to recover up to three times the wages plus interest.
NELP provided significant legal support to the campaign, as did the United Food and Commercial Workers Union (UFCW). ROC United contributed funds to the campaign and ran the mailers and Facebook ads.
The coalition working to advance the minimum wage used gradual wage increases to give businesses time to adapt. It also enlisted a nationwide network of business executives. They also designed a 10-year phase-in to eliminate the wage gap.
Tipped minimum wage in Arizona 2023
If you are a small business owner in Arizona, you must be aware of the state’s tipped minimum wage law. This law requires that employers pay their tipped employees a minimum wage equal to three-eighths of the standard minimum wage. If you aren’t sure, it’s best to talk to an experienced accountant or lawyer.
In January of each year, the Industrial Commission of Arizona sets the minimum wage. This is based on the cost of living. The rate is then adjusted annually. When the rate is set, you will need to post a new poster on your store front or business advising workers of their rights under the federal Labor Standards Act. You may also need to keep records of all hours worked and tip wages.
The tipped minimum wage in Arizona is currently set at $3.50 per hour, which is a bit lower than the federal tipped minimum wage of $2.13. Until 2022, the tipped minimum wage will remain at this level. It will gradually decrease by 50 cents each year until it is lowered to $3.50 in 2026. There are some local jurisdictions that haven’t yet announced their own minimum wage rates for 2023.
Some states allow an employer to take a tip credit. If an employer chooses to do so, the employee’s tips are essentially counted as though the employer paid them directly to the employee. In most cases, the credit is applied to the employee’s normal hourly wage, rather than a separate tipped minimum wage. However, in Hawaii, the employer is required to pay the tipped employee a minimum wage.
The tip credit is not available to every tipped employee. Some employees may qualify for a lower rate, such as those who work for parents, government, or siblings. The rate is also not applicable to a tipped employee who performs babysitting services at the employee’s home. If the employer is not allowed to pay a tipped employee less than the tipped minimum wage, the employer must notify the employee and let the employee keep the tips.
Tipped minimum wages in Arizona are phased in over a ten-year period. It’s important to note that the rate is a state-defined definition. The federal minimum wage is not affected by the state’s definition of a tipped employee.
Minimum Wage in Arizona Conclusion
Minimum Wage in Arizona FAQ
What is minimum wage AZ 2022?
AZ minimum wage was 13.85$ in 2022. A tipped employee, such as a waiter or bartender who receives tips, may be paid up to $3 an hour less than the regular state minimum. But the employer must credit the tipped employee with enough tip income to cover the difference.
What year will minimum wage be $15 in AZ?
The minimum wage in AZ is now $11 an hour and scheduled to rise to $12 an hour by January 2020. After that, the state minimum wage will be adjusted annually based on the Consumer Price Index (CPI) and a cost-of-living formula.
Tipped employees are not covered by the state minimum wage but may be paid a lower base salary that is equal to their tips if they regularly receive at least $3 per hour in tips. This can be a significant difference for employers that regularly pay tipped employees.
Is minimum wage going up in az in 2023?
In 2016 voters approved Proposition 206, which raised the minimum wage from $8.05 an hour to $10 and then increased it every year until 2020, when it was set at $12. The increase is tied to inflation, based on the Consumer Price Index (CPI) for urban workers.