New Minimum Wage Law
With the passage of Arizona’s Proposition 206, Arizona’s minimum wage laws and paid sick time requirements will change beginning in 2017.
The following is a brief summary of the proposition’s key provisions.
Minimum Wage Increase
Prop. 206 increases the minimum wage in Arizona to:
• $10.00 per hour on January 1, 2017;
• $10.50 per hour on January 1, 2018;
• $11.00 per hour on January 1, 2019; and
• $12.00 per hour on January 1, 2020.
After 2020, Arizona’s minimum wage will increase according to increases in the cost of living, which is how it was done up until now.
Employers are still permitted to pay $3.00 per hour less than the minimum wage to an employee who customarily and regularly receives tips or
gratuities. As such, most restaurant server pay must raise to $7.00 per hour beginning on January 1, 2017.