labor lawAdivision of labor law center

As of today, January 1, 2009, the minimum wage in Arizona became $7.25 an hour, when it increased from $6.90, a hike of 35 cents per hour.

 

The Arizona minimum wage applies to permanent, full-time employees, and temporary or part-time workers as well. Arizona has a new minimum wage law, and this marks the first yearly increase due to cost of living under this new law.

 

The new increase is based on the Consumer Price Index (CPI), which measures the annual inflation rate. Arizona voters supported Proposition 202 on November 7 of 2005. The proposition was called the “Raise the Arizona Minimum Wage for Working Arizonans Act.” This law, A.R.S. 23-364(A) became effective on January 1 of the following year. Authority was given to the Industrial Commission of Arizona (ICA) to enforce the new Act.

 

The Arizona minimum wage became $6.90 per hour on January 1, 2008. The new law also protects workers who assert their rights or help in an investigation of possible violations of the new minimum wage law.

 

A number of exceptions to the new Arizona Act do exist, however. It does not apply to any business that makes less than a half-million dollars in revenue annually. In this respect, it tracks the federal FLSA, or Fair Labor Standards Act. Although many states with their own minimum wages will cover almost all employers, the Arizona law only applies to those normally covered by the federal minimum wage.

 

Employees who receive tips are also an exception. Employers are allowed in Arizona to count as much as $3 per hour as a “tip credit.” In essence, that means tipped employees such as wait staff are under a $4.25 per hour minimum wage (plus, of course, their tips). Employees, however, must at least receive the minimum wage in wages and tips combined. If the employee does not on average earn the minimum wage when combining tips and wages, then the employer must make up the difference. 

 

Those employed a parent or by a sibling are not covered by the minimum wage law. Neither are babysitters working in the employer’s home or who are hired on a casual basis.

 

 

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