Arizona’s minimum wage rate will increase from $13.85 to $14.35 per hour on Jan. 1, 2024. Arizona’s minimum wage rate is adjusted every year to reflect changes in the cost of living. Employers should also be mindful of local laws, ordinances and other rules or regulations that may increase employee minimum wage rates. For example, Arizona does not allow employers to pay subminimum wages to young workers, students or apprentices, and the city of Flagstaff’s minimum wage rate will increase from $16.80 to $17.40 per hour on Jan. 1, 2024.
Tipped Employees
Arizona allows employers to pay their tipped employees a minimum wage rate that is $3 lower than the state’s minimum wage rate. As a result, the 2024 tipped employee minimum wage rate is $11.35 per hour.
Employers are required to subsidize a tipped employee’s minimum wage rate if the employee’s tips and gratuities are insufficient to allow the employee to receive wages that are at least equal to the state’s minimum wage rate.
Arizona Minimum Wage
Jan. 1 to Dec. 31, 2023
$13.85
$10.85 (tipped employees)
Jan. 1 to Dec. 31, 2024
$14.35
$11.35 (tipped employees)
Employers should also be mindful of local laws, ordinances and other rules or regulations that may increase employee minimum wage rates.
Required Poster
Arizona employers must display a minimum wage poster to notify their employees of their rights under state law. The Industrial Commission of Arizona has published updated minimum wage model posters in English and Spanish that employers can use to satisfy the poster requirement for 2024.
Impact on Employers
Arizona employers should review and adjust their payroll systems to make sure nonexempt employees receive wages that are at least equal to the 2024 state minimum wage rate by Jan. 1, 2024.
Provided to you by De La Torre & Associates Insurance Services, Inc.
This Legal Update is not intended to be exhaustive, nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice. ©2023 Zywave, Inc. All rights reserved.