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Arizona 2015 Minimum Wage Increase

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
  • Bussers
  • Bartenders
  • 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:

  • Arizona
  • Colorado
  • Florida
  • Missouri
  • Montana
  • Nevada
  • Ohio
  • Oregon
  • Vermont
  • Washington

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
2006 $5.15* NA
2007 $6.75 31.068%
2008 $6.90 2.222%
2009 $7.25 5.072%
2010 $7.25 0.000%
2011 $7.35 1.379%
2012 $7.65 4.082%
2013 $7.80 1.961%
2014 $7.90 1.282%
2015 $8.05 1.899%

*Pre-indexed rate.

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
  • E-Verify
  • Right to Work
  • Work Exposure to MRSA, Spinal Meningitis, or TB

Arizona employers can save 20% off all workplace poster purchases using GovDocs coupon code 2015MIN.

Arizona versus the Feds: State OSHA Plan

Arizona’s State health and safety plan has fallen out of favor with Federal OSHA guidelines. The State may lose its federally approved status – and federal dollars for its health and safety program.

2/6/2015 UPDATE: On February 6, 2015, the Federal Occupational Safety and Health Administration (Federal OSHA) rejected Arizona’s state-specific residential fall protection (RFP) standards. All Arizona state-specific RFP standards are repealed effective Saturday, February 7, 2015. Employers in Arizona must comply with the federal residential fall protection standards.

Arizona is one of 20 U.S. States, Puerto Rico, and the Virgin Islands who have had their job safety and health programs approved by OSHA. Once approved, these State Health and Safety Plans trigger federal funding – up to half of an approved plan’s operating costs. But now Arizona’s State Plan for occupational health and safety is in danger of being removed from the program, which would mean the State would lose federal funding.

At issue is a fall-protection standard that requires workers in residential construction to wear safety harnesses at a working height of six feet above ground (OSHA 29 CFR Part 1926, Subpart M) or to be protected by other fall-protection measures. The Arizona State Plan, however, was amended by legislature (SB 1441) in 2013. That legislation pushed the working height requirement further off the ground to fifteen feet.

Arizona’s State Plan was the fourth U.S. State Plan to receive approval from the U.S. Occupational Safety and Health Administration (OSHA) under Section 18(e) of the Occupational Safety and Health Act. The Act was enacted to create and enforce safe working conditions. It allows U.S. States and Jurisdictions to create and enforce health and safety plans that meet minimum federal guidelines.

The State is asking OSHA to keep the State Plan certified based on discrepancies in OSHA working-height allowances, which also include allowances for individual employers to develop their own fall protection plans when following the letter of the law is infeasible.

What Does Arizona Want from OSHA?

Citing evidence that Arizona’s State plan is more effective than Federal OSHA guidelines, Arizona is seeking renewed discussions with the federal government before OSHA’s final decision to reject the Arizona State Plan.

In its Comments to Proposed Rejection of State Initiated Plan, the Arizona Department of Occupational Safety and Health (ADOSH) asserts:

“The [Industrial Commission of Arizona] and other interested stakeholders are being asked to comment on the effectiveness of Arizona’s approach to fall protection in residential construction along with the overall operation of the State plan and yet, OSHA has not established any criteria against which to judge effectiveness.”

How Would Rejection of the State Plan Affect Arizona Labor Law Posting Requirements?

When a State or Jurisdiction has a State Plan approved by OSHA, employers need only display the State Plan for employees and not the federal OSHA posting. If Arizona’s State Plan loses its approval, employers in Arizona will need to display both the Arizona Employee Safety and Health Protection posting and the federal OSHA Job Safety and Health – It’s the Law posting.

For now employers can display only the Arizona version on the posting – at least until a final determination is made by the Federal OSHA. GovDocs continues to monitor the situation.

For employers in Arizona looking for the most current Arizona Workplace Postings required by the State, please visit GovDocs’ Arizona Posting Packages.

 

 

Arizona Revises Unemployment Insurance Posting

The Arizona Unemployment Insurance Office has revised its Notice to Employees: You Are Covered by Unemployment Insurance posting. The GovDocs Research Department has confirmed that the revision is mandatory for Arizona employers.

What Changed on Arizona’s Unemployment Insurance Posting?

In addition to light verbiage and formatting changes, critical revisions include:

  • Added website link for employees to download Unemployment Insurance pamphlet.
  • Directing claimants to website instead of phone number.
  • Directing claimants to register for work with the Arizona Job Connection.
  • Removed the Office’s postal address.
  • Updated federal compliance section to reflect changes to applicable Federal statutes.
  • Added non-English language assistance options.

Employers with locations in Arizona are required to post the Arizona Unemployment Notice. A Spanish version is also available and strongly recommended.

The revised Unemployment Insurance posting is included on the GovDocs Arizona State-on-One and Combined posters.


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