Starting Jan. 1, 2023, Arizona’s minimum wage will increase more than a dollar an hour. The hike is meant to keep up with the cost of living.
As a result of voter-approved laws, Arizona’s minimum wage will increase based on annual inflation adjustments. The federal Bureau of Labor Statistics said prices rose about 8% over the past year. That means Arizona’s minimum wage will go from $12.80 an hour to $13.85.
State law allows employers to pay employees who earn tips and gratuities $3 an hour less as long as they receive the minimum for all hours worked.
Voters in Flagstaff approved a higher minimum wage in 2016 and so that city’s rate will jump from $15.50 an hour to $16.80. The minimum for Flagstaff workers who earn tips will go from $13.00 an hour to $14.80.
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