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 (more…)

The Arizona minimum wage will increase by 35 cents, from $6.90 to $7.25 per hour on January 1, 2009. This is the first annual cost-of-living increase under the new Arizona minimum wage law. The increase is based on the annual inflation rate as reported by the CPI, the Consumer Price Index.  

On November 7, 2006, the Arizona voters approved Proposition 202, also known as the “Raise the Arizona Minimum Wage for Working Arizonans Act.” Under A.R.S. 23-364(A), which became effective January 1, 2007, the Industrial Commission of Arizona was given the authority to enforce and implement the Act.  Effective January 1, 2008, Arizona’s minimum wage increased to $6.90 per hour.  

Every employer covered under the Act is required to pay each employee wages not less than this amount, according to the Industrial Commission of Arizona.Effective January 12, 2008, final Administrative Rules under Title 20, Chapter 5, Article 12 were approved and are currently in effect.  

The Arizona minimum wage applies to part-time and temporary workers, as well as full-time permanent workers.  

Arizona permits employers to take up to (more…)

There is an old saying that anyone who represents himself in court has a fool for a client.

The state of Arizona appears to be trying to change that perception. The state recently published five guides for employers – and others – who would prefer to represent themselves in workers comp hearings, appeals cases and the like.

Each separate guide focuses (more…)

Finding skilled workers for is every Arizona employer’s priority. The U.S. Department of Labor recently made it a top priority as well, with a $2 million grant to train workers in transportation, distribution and logistics – three industries that are growing in the state.

A national model for the development of a demand-driven workforce, the President’s High Growth Job Training Initiative, implements programs through partnerships with business, industry and educators. Officials at the U. S. Department of Labor strongly believe these partnerships help boost local economies, and help the country’s ability to compete in the world marketplace by providing Americans with work.

While many of the US DOL grants go to community colleges, this grant was community-based — the $2 million goes to Pima County to implement worker training programs in the Tucson area.

These grants focus on employers and provide funds to community college located near those employers in dire need of skilled workers. The funds are awarded to increase the community colleges’ capacity to train workers for these growing industries, both to fill the industry needs and to provide high-paying, career advancing jobs for America’s workers.

The Tucson agency will utilize the money to hire qualified faculty, set up training experiences like internships, and to upgrade equipment needed to aid in the training process. The colleges work closely with local industries to develop a training curriculum to meet that industry’s needs. The goal of the Grants is not only to provide skilled workers for these industries, but also to meet the needs of the employees with increased wages and increased options for advancement.

Employers receive many benefits from the programs beyond skilled workers. Companies that add the Workforce Investment System to their Human Resources department are eligible for incentives such as government training assistance and tax credits. Plus, with the local colleges training these workers, the industry has a built-in method for screening and referral of skilled applicants. The employer reduces recruiting costs as a result, and increases the quality of its workforce. These benefits allow the employer to bring the company into the 21st century, increase profits and become more competitive in the global market.

U.S Department of Labor Secretary Elaine L. Chao made the following comment, “Community colleges are in a unique position to prepare local workers for careers in high-growth industries. The $125 million awarded today will expand enrollment in education and training programs and provide more workers with the skills they need to succeed.”

Community colleges and local agencies across the nation recently received $125 million in awards under the President’s Community Based Job Training Grants Initiative.

The grants were highly competitive. Over 341 applications were filed in a competition announced in August, 2007. The awards were given to the top 69 competitors to help community colleges and training facilities provide assistance for workers seeking jobs in high-growth industries.

Acting Assistant Secretary of Labor for Employment and Training, Brent R. Orrell stated, “Preparing local residents for careers in growing hometown industries is critical to improving the quality of life of thousands of Americans. These programs will provide participants not only with the skills needed to gain employment, but the change to enter into careers that offer opportunities for advancement.”

The Community-Based Job Training Grants program was established in 2005, awarding 72 grants. In 2006, the second round of grants totaled 70. The purpose of these grants is to boost the community colleges’ role in marketing the full potential of the U. S. workforce.

Certain industries are having trouble finding trained workers. Health care, construction, biotechnology and energy are examples of a few nationwide industries seeking skilled employees. Several regional employers require skilled workers, too, such as the movie industry in Culver City, California.

Arizona employers need to be aware of important changes in the state minimum wage law.

The federal minimum wage is $5.85 per hour, and many states simply adopt the federal minimum wage. Other states establish their own minimum wage laws.

Arizona is one of those states, and as of January 1, 2008, Arizona instituted an annual cost-of-living raise. Minimum wage in Arizona is now $6.90, a 15 cent bump from $6.75.

The Industrial Commission of Arizona, as mandated by Arizona’s new Minimum Wage Initiative, is charged with annually adjusting the state’s minimum wage. The Initiative states “The minimum wage shall be increased on January 1, 2008 and on January 1 of successive years by the increase in the cost of living.”

The CPI (Consumer Price Index of All Urban Consumers) for the previous 12 months ending in August provides the basis for the increase. The CPI was 2% for on August 2007, which calculates as a 13.5 cent increase for Arizona’s minimum wage. State law, however, requires any increase to be adjusted to the nearest 5 cents, so instead of a minimum wage of $6.885, the new rate adjusted up to $6.90.

In addition to the Minimum Wage Initiative, Arizona also issued a recent Policy Statement about “hours worked”. According to the Arizona Minimum Wage Act, an employee who works fewer than 24 hours, even if allowed to sleep or do other activities when not busy, is “working” the whole time.

For example, an employer allows a switchboard operator to sleep when not answering calls, and provides facilities for that purpose. The operator is considered to be “working” for state minimum wages while asleep, and the employer is obligated to pay that operator at least that rate.

For firefighters and other employees who work more than 24 hours per shift, the employee and employer collaborate on specific meal and sleep periods. These periods can not add up to over 8 hours per 24 hour period, and the sleep period for the employee must be undisturbed.

Arizona is one of several states that increased the minimum wage in 2008.

The year 2008 has already experienced several changes in state minimum wage laws, and is slated to see several more.

On New Years Day, 2008, Arizona, California, Colorado, Delaware, Florida, Iowa, Massachusetts, Missouri, Montana, New Mexico, Ohio, Oregon, Vermont and Washington, fourteen states in all, enacted raises in their state minimum wage rate.

On July 1, 2008, five more states will follow suit. Michigan and Illinois will each raise its state minimum wage by twenty-five cents. Michigan’s will go from $7.15 to $7.40 per hour. Illinois’s will rise from $7.50to $7.75.

Kentucky and West Virginia, will add seventy cents to their minimum wage rates, resulting in new rates of $6.55 per hour and $7.25 per hour, respectively. Pennsylvania workers will enjoy a 90 cent per hour raise to their minimum wage rate, giving them a new minimum of $7.15 per hour.

Later in July, Utah, Oklahoma and a number of other states will establish higher minimum wage rates, too. These states have enacted laws which tie their minimum wage raises to the federal minimum wage. In addition to a number of states that increase the minimum wage, the District of Columbia will, as well. By local law, the D.C. minimum wage must be at least $1.00 more than the federal rate, so it will go to $7.55 on July 24.

Whenever a change occurs in any labor law, employers must update their labor law posters or face the possibility of a fine. Companies are required to display these posters in prominent spots in the employee work area, and to update for both state and federal law changes. Businesses seeking up to date information can visit www.laborlawcenter.com.