Overview of Arizona's Minimum Wage Requirements
The minimum wage requirements in Arizona are subject to annual adjustments based on the cost of living. This measure, which began in January 2021, ensures that workers' purchasing power remains stable despite inflation and changes in the cost of living. As of the most recent data available, the minimum wage in Arizona is $14.35 per hour.
It's important to note that state minimum wage laws can be superseded by federal minimum wage laws if the federal rate is higher. However, in cases where the state minimum wage is greater than the federal minimum wage, the state minimum wage prevails. As of the last update, the federal minimum wage was $7.25, which is lower than Arizona's minimum wage. Therefore, the prevailing minimum wage in Arizona is the state rate of $14.35.
Understanding Local Minimum Wage Variations
In Arizona, local minimum wage requirements can vary by county and city. For example, as of January 1, 2024, the minimum wage in Maricopa County, Pima County (specifically Tucson), Yavapai County, Mohave County, Phoenix, and Scottsdale is $14.35 per hour. However, in Pinal County, the minimum wage was set at $12.80 per hour as of January 1, 2022, and increased to $13.85 per hour in 2023.
In Tucson, the minimum wage is set to increase to $15.00 per hour by January 1, 2025. For the most accurate and current information, individuals are encouraged to consult the relevant state labor offices or visit the U.S. Department of Labor's website.
Minimum Wage Eligibility and Exemptions
In the state of Arizona, most employees are eligible for the state minimum wage. However, there are certain exceptions to this rule. The minimum wage does not apply to any person employed by a parent or a sibling, any person performing babysitting services in the employer’s home on a casual basis, any person employed by the State of Arizona or the United States government, or any person employed in a small business that grosses less than $500,000 in annual revenue.
For tipped employees, employers may pay a maximum of $3.00 per hour less than the minimum wage if they can establish that the employee received not less than the minimum wage for all hours worked when adding tips received to wages paid.
Minimum Wage Considerations and Compliance Tips
Food business employers in Arizona need to be aware of several key minimum wage legal and compliance considerations. For employees who regularly receive tips, employers may pay up to $3.00 per hour less than the minimum wage, provided that the total of tips and wages meet or exceed the minimum wage for all hours worked.
Employers are prohibited from discriminating against or retaliating against any person asserting a claim or right under the Act, assisting any person in doing so, or informing any person of their rights under the Act. Violations of the Act may result in penalties. Employers are required to post the AZ State Minimum Wage Poster 2024, available in both English and Spanish.
FAQs
- What is the current minimum wage in Arizona? The current minimum wage in Arizona is $14.35 per hour.
- Are there any exemptions to the minimum wage in Arizona? Yes, there are certain exemptions including individuals employed by a parent or sibling, babysitters working in the employer's home on a casual basis, employees of the State of Arizona or the United States government, and employees of small businesses grossing less than $500,000 in annual revenue.
- What is the minimum wage for tipped employees in Arizona? For tipped employees, employers may pay a maximum of $3.00 per hour less than the minimum wage if they can establish that the employee received not less than the minimum wage for all hours worked when adding tips received to wages paid.
Information Source Links
- Arizona Minimum Wage
- Arizona Tipped Minimum Wage
- Arizona Industrial Commission website
- U.S. Department of Labor's website
- AZ State Minimum Wage Poster 2024 - English
- AZ State Minimum Wage Poster 2024 - Spanish
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