Arizona has passed some pivotal minimum wage reforms in the past couple of years. However, the same standard does not apply to every employee.
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2020 Minimum Wage in Arizona: $12 per hour
The minimum wage in Arizona is $12 per hour. This is higher than the federal minimum wage of $7.25 per hour. The wage is set to increase each year in January, determined by the cost of living.
The following employees are exempt from the state minimum wage laws:
- Someone employed by their parents or a sibling.
- A babysitter who works in their employer’s home on a casual basis.
- Someone employed by the State of Arizona or the U.S. government.
- Someone employed by a small business that grosses less than $500,000 in annual revenue, as per the Federal Fair Labor Standards Act.
Tipped: $9 per hour
Tipped employees are only entitled to $9 per hour, or a maximum of $3 dollars an hour less than non-tipped employees, with the expectation that they will make up the difference in tips. If a tipped employee does not make at least $12 per hour, the state minimum, when accounting for their tips and their wage, then their employer must make up the difference.
Arizona does not define a “tipped employee,” so any employee that receives tips could be considered one.
The weekly minimum wage in Arizona is $480. This is calculated by taking the minimum wage ($12 per hour) and multiplying it by the number of hours customarily worked during a full work week (40 hours). This results in $480 per week.
The annual minimum wage in Arizona is $24,960. This is calculated by taking the weekly minimum wage ($480) and multiplying it by the number of weeks in a year (52). This results in $24,960.
However, this does not account for holidays or vacation time. An employer has some leeway on how to handle those situations, so not every employee is guaranteed holiday pay.
Overtime: $18 per hour
If an employee works over 40 hours in a week, any hour afterwards counts as overtime. These hours are paid at one-and-a-half times the employee’s hourly rate.
In Arizona, the minimum wage is $12 per hour, and that multiplied by one-and-a-half is $18.
Flagstaff Minimum Wage
The minimum wage in Flagstaff is $13 per hour, and the tipped minimum wage is $10 per hour.
The city has a plan in place to increase the minimum wage to $15.50 in 2022, and will adjust it according to the cost of living thereafter.
Phoenix Minimum Wage
In 2019, the Phoenix City Council voted to increase the minimum wage for city employees to $15 per hour. This only applies to employees who work for the city of Phoenix, as opposed to all residents working within the municipal district.
Arizona Minimum Wage Increase News
The minimum wage will continue to increase over the next few years according to recent state legislation. The minimum wage will increase according to the cost of living and changes in inflation. This will be determined by the federal inflation gauge called the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W. Arizona’s increase in minimum wages is accompanied by a general minimum of 40 hours of paid sick time each year.
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