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Beginning January 1, 2019, the hourly minimum wage in the state of Arizona will increase to $11 per hour.

This increase is in accordance with Proposition 206, referred to as the Fair Wages and Healthy Families Act that was passed by voters in the general election of November 2016.

For employees who regularly and customarily receive tips or gratuities, an employer may pay tipped employees a maximum of up to $3 per hour less than the hourly minimum wage for 2019, providing the tipped employee:

  1. Earns at least the hourly minimum wage for all hours worked for each workweek including all tips and; 
  2. Is informed in writing by their employer of all the tip credit provisions.

Proposition 206 raised the new minimum wage requirement to $10 per hour effective January 1, 2017; the Act requires employers to provide earned paid sick time benefits to all Arizona employees effective July 1, 2017.  The Industrial Commission of Arizona was given the authority to enforce and implement the Act. The schedule of increases is as follows:

  1. $10 on and after January 1, 2017.
  2. $10.50 on and after January 1, 2018.
  3. $11 on and after January 1, 2019.
  4. $12 on and after January 1, 2020.

To learn more visit the Industrial Commission of Arizona’s Labor Department:

https://www.azica.gov/labor-minimum-wage-main-page.

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