Arizona’s Minimum Wage Increases

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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.

8 Comments

  1. The actual minimum wage is $0/hr. When labor becomes too expensive, either the business dies or the labor is replaced with automation at an artificially accelerated pace.

    Furthermore, it is reckless spending and printing of fiat money that increases inflation, so this is, once again, gov’t providing a bad solution to a problem that government has created.

  2. Employers don’t want to pay employees any more than they absolutely have to. If there were no minimum wage, er’s would pay ee’s the least amount possible in order to fill positions. If there are more job seekers than jobs, wages will be lower; if er’s have to compete for ee’s, wages will be higher. BUT, as the job market changes, er’s will adjust current ee’s wages up OR DOWN as they see fit.

    • Why would employers EVER, UNDER ANY CONDITION, pay more than they have to? That’s called negotiation and it’s perfectly legal. If a state has a minimum wage and the prospective employer is required to pay an employee more than the return is worth, WHAT HAPPENS? No job gets created.
      It is for this simple ECON101 reason that minimum wages determined by something other than the free market creates things like the outlandish inflation of the past 4 years.

  3. I remember a town hall question years ago, during Hillary Clinton’s Presidential Campaign. She answered a question asked by the owner of a Pizza shop about the minimum wage law then being proposed. He wanted to know how he was supposed to pay the minimum wage in his highly competitive industry where he could not afford to raise his prices and still remain in business. Hillary responded by saying she couldn’t be held responsible for every under-capitalized business that could not meet the requirements of the minimum wage. This is how Democrats in office think of the economy and us. Only large fully capitalized companies should be allowed to exist. Small business needs to conform to government requirements or disappear. The people in office are our masters. They control the economy, and we should just accept what they are willing to give us and shut up about everything else. Hillary’s comment is true Democrat arrogance in a nutshell.

    And Democrats in elected office, or running for office, still have this attitude about us and the economy. According to them, in the 2024 election the voters were misguided and misled. They didn’t understand the wonderful job Democrats were doing for them and for the good of the country. The voters were misguided. They were listeneing to the lying right wing media and mistakenly believing what they heard. They were beguiled by a “Dictator” who would take over the country, if elected, and destroy Democracy in America.

    Well, the voters seem to have had a different opinion. Let’s continue to make our opinion clear to Democrats by continuing to vote for the other folks. Let’s try to ensure that socialist/communist/progressive policies, like a national minimum wage, get put onto the ash heap of history, where they belong, along with all the other disastrous Democrat economic policies.

  4. The best “minimum wage” is no minimum wage. The market should be allowed to act naturally. A legal minimum wage is government interference in the economy, which never turns out well.

  5. Cost gets passed on to the consumer…minimum wage is a joke. When employees do a fantastic job and their performance eval shows that, the employer should want to pay an exemplary worker accordingly! Merit based pay is the most efficient! It brings out the best in people. Rewarding someone for a job well done is common sense and should not be determined by government!!!

  6. I am mystified why the State (or Federal Government) has to set a pay level for a private business. Wages should be negotiated between the worker and the employer and no one else. The only person who really benefits from this is the tax man. He knows if he sets the minimum he can be sure of what he gets at the minimum.

    • “if he sets the minimum he can be sure of what he gets at the minimum”. Not if the minimum reduces the numbers of employee’s as well as the businesses that open or elect to stay open.. it also effects the monthly tax bill the employer pays the state / fed as part of employee taxes… that in itself is a mess. Maybe the ‘FLAT TAX’ is coming – but minimum wage control – i agree with you – between the employee and employer. Tax man back door taxes ‘ no doubt

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