What is Minimum Wage in AZ?

What is Minimum Wage in AZ?

Arizona raised its minimum wage to $14.35 per hour in January 2024.

This applies to all employees except those earning tip income, whose minimum wage rose to $11.35 per hour.

Employers are required to pay the new minimum wage for all hours worked since the beginning of the year.

There are specific rules for classifying employees as tipped workers.

An image illustration of What is Minimum Wage in AZ
What is Minimum Wage in AZ
Source: (Freepik)

What is the Consumer Price Index (CPI) and its Relevance

The Consumer Price Index (CPI) tracks inflation by measuring changes in the cost of a basket of goods.

Arizona uses the CPI to adjust its minimum wage annually, ensuring workers’ buying power stays steady.

This can impact employer practices and staffing levels.

How Business Owners Can Prepare for the AZ Minimum Wage Change

As labor laws change, business owners must prepare themselves and their employees for the changes.

Here are some ways to get ahead of the curve;

  • Double-check your employee handbook: Make sure all your policies, like scheduling or performance reviews, are current and follow the new wage guidelines.
  • Upgrade your payroll system: Invest in payroll software that adapts to the new wage and integrates with your other HR tools.
  • Review compensation plans: Take a fresh look at employee pay, benefits, and time off to stay competitive in the new wage landscape.
  • Budget and plan: Analyze your finances and consider options like hiring seasonal workers or adjusting staff schedules to manage the increased labor costs. By following these steps, business owners can be proactive and prepared for the minimum wage change.

Which state has the highest minimum wage?

The highest minimum wage in the US is currently $17 per hour, offered in Washington D.C.

Several other states and localities follow closely behind, with rates between $15.69 and $16.28 per hour.

An image illustration of Minimum Wage in AZ
Minimum Wage in AZ
Source: (Freepik)

Is it cheaper to live in Arizona?

Arizona is slightly more expensive than the national average overall, with housing being a particularly significant cost factor.

Utilities are a bit cheaper there, and groceries and clothing costs are only slightly higher than the national average.

What is Minimum Wage in AZ Wrap-Up

Arizona’s minimum wage for most workers is currently $14.35 per hour, which took effect in January 2024.

This applies to all employees except those who earn tip income, whose minimum wage is set at $11.35 per hour.

It’s important to note that Arizona’s minimum wage is adjusted annually based on inflation.


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