Arizona Minimum Wage Increase 2015

Effective January 1, 2015 the Arizona minimum wage increases from $7.90 to $8.05 per hour. The Arizona minimum wage for tipped employees increases to $5.05 per hour in 2015. This increase was issued by the Industrial Commission of Arizona on October 16, 2014. Arizona is one of about a dozen US states that increases the minimum wage annually, based on the cost of living.  In 2006, Arizona voters approved Proposition 202, which increased the state minimum wage and introduced annual increases under ARS 23-363 (B).

Arizona employers will need to update their minimum wage posters to reflect this change. A great resource for top-quality laminated posters is http://www.laborlawcenter.com/. According to the Industrial Commission of Arizona, virtually every employer in the state is covered by the minimum wage. Some small businesses with less than $500K in annual revenue are exempted, but not if they engage in interstate commerce by (for example) accepting credit cards for payment. In addition, any business covered by the federal FLSA is covered by the Arizona minimum wage.

The 2015 Arizona minimum wage applies to employees of all ages including full-time, part-time and temporary. However it does not apply to an employee who works for a parent or sibling. It does not apply to babysitters employed in the home or on a casual basis. Nor does it apply to the state or federal governments.

Under state law, employers can pay $3.00 less than the minimum wage to tipped employees, or $5.05 per hour. However, employees must be allowed to keep all tips, free of any control by the employer. Tips must be the property of the employee. Employees can tip pool, share or split tips with employees who are not customarily tipped, but in that case all the employees involved must be paid at least the Arizona minimum wage of $8.05 per hour.