The Industrial Commission of Arizona (ICA) announced an increase of Arizona’s minimum wage to $8.05 per hour effective January 1, 2015. The $0.15 raise is a 1.9 percent increase over the 2014 rate of $7.90 per hour affecting more than 24,000 Arizona minimum wage workers.
The ICA administers and enforces the State’s minimum wage
Arizona Tipped Workers Minimum Wage
Employees who are tipped earn a base rate of $5.05 per hour thanks to a $3 tip credit.
Tipped workers include people who customarily receives tips, typically in the restaurant, hospitality, and personal services industries:
- Food servers
- Bellhops / Valets
- Car wash attendants
- Hairdressers / Barbers
Arizona Annual Minimum Wage Calculation
Arizona’s minimum wage can be adjusted annually based on increases in the cost of living based on the Consumer Price Index (CPI). Any adjustments to the Arizona minimum wage are rounded to the nearest nickel (five-cent increments).
Arizona is one of 10 states in the U.S. that indexes the minimum wage to adjust to the cost of living:
History of Arizona Minimum Wage
The State enacted the Arizona Minimum Wage Act (Proposition 202) in 2006 after a successful ballot measure. The table below shows Arizona’s minimum wage rates since 2006 and the percentage of increase for each year, if any.
|Year||Minimum Wage||% Change|
Arizona Minimum Wage Poster
Arizona employers are required to display the most current Arizona Minimum Wage Poster, which is included as part of GovDocs’ Arizona Workplace Poster Packages, along with other required postings:
- Unemployment Compensation
- Workers’ Compensation Insurance (Memo)
- Employee Safety & Health Protection
- Prohibition of Discrimination
- Work Exposure to Bodily Fluids
- Constructive Discharge
- Minimum Wage
- No Smoking Poster
- Right to Work
- Work Exposure to MRSA, Spinal Meningitis, or TB