By a 65% to 35% margin, on November 2, Tucson, Arizona, voters passed Proposition 206, officially known as the Tucson Minimum Wage Act, increasing the City’s minimum wage to $15.00 an hour by 2025. In addition, the Act includes several other significant changes that will impact employers operating in the City.
Five years ago, voters statewide passed a similar proposition that incrementally raised the minimum wage to $12.00 by 2020.
Under the Act, the City’s minimum hourly wage will increase as follows:
To $13.50 on January 1, 2023;
To $14.25 on January 1, 2024; and
To $15.00 on January 1, 2025.
Thereafter, the minimum wage may increase each January, to the nearest $0.05, depending on the rate of inflation, and will be announced no later than November 1 of the previous year. A higher state or federal minimum wage will supersede these rates. Due to cost-of-living adjustments, the current hourly rate statewide is $12.15 and will increase to $12.80 on January 1, 2022.
The Act will apply to all employees, whether full-time, part-time, or temporary, who perform at least five hours of work within Tucson’s geographic boundaries. Employers may take a tip credit of no more than $3.00 for “tipped employees,” whose definition essentially matches that found under the federal Fair Labor Standards Act (FLSA). Casual employees who perform babysitting services at an employer’s home are excluded. All employers, except the State of Arizona, the United States,...
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