Flagstaff has passed its own legislation that will see it reach a $15.50 minimum wage by 2022 (this is in line with a number of cities around the country that have passed legislation to reach a $15 minimum wage). In accordance with the 2016 proposition, Arizona increased minimum wage to $12 in 2020, $12.15 in 2021 and subsequently $12.80 in 2022. The change is a result of an adjustment for inflation. <>/Border[ 0 0 0]/Rect[ 90.24 380.16 240.96 391.68]/Subtype/Link/Type/Annot>> Fully updated for April 2017! The current minimum is $12.80 an hour. 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Lets say you own a restaurant in Arizona and pay a server the tipped minimum wage. the information up to date, we make no representations or warranties of any kind about the completeness, accuracy, <>/Border[ 0 0 0]/Rect[ 243.84 1.92 366.72 13.44]/Subtype/Link/Type/Annot>> The following is a table of all Arizona localities with established minimum wage laws. By Howard Fischer Capitol Media Services PHOENIX -- Workers at the bottom of the Arizona wage scale are going to be legally entitled to a pay hike of $42 a week beginning in January. endstream Stay ahead of recruiting and hiring regulations. But that is conditional on proof that their tips are making up the difference.Where the higher wage may hurt, said Chucri, is down the road, after inflation has cooled and after there is better alignment between the number of open jobs and the number of people who want one.Under other circumstances, he said, that could allow employers to offer less.Only thing is, the state minimum wage law is a one-way ratchet: It can only go up. The following states have passed legislation to reach a $15 minimum wage in 2023 and beyond. The federal minimum wage has remained $7.25 since 2009. There is a higher minimum wage in the Portland metro area and a lower minimum wage in Nonurban counties. Retain and coach your workforce with career planning. endstream .cd-main-content p, blockquote {margin-bottom:1em;} Whats happening is the market is driving wages, he said. Support local journalism. endobj And that is largely driven by a 17.1% year-over-year increase in housing costs, a reflection of sharply higher home prices and rents.-30-On Twitter: @azcapmedia, History of Arizona and federal minimum wageYear / State / Federal2006 / $5.15 / $5.152007 / $6.75 / $5.852008 / $6.90 / $6.552009 / $7.25 / $7.252010 / $7.25 / $7.252011 / $7.35 / $7.252012 / $7.65 / $7.252013 / $7.80 / $7.252014 / $7.90 / $7.252015 / $8.05 / $7.252016 / $8.05 / $7.252017 / $10.00 / $7.252018 / $10.50 / $7.252019 / $11.00 / $7.252020 / $12.00 / $7.252021 / $12.15 / $7.252022 / $12.80 / $7.252023 / $13.85 / $7.25-30-, PublishedSeptember 15, 2022 at 5:08 PM MST. An increase of $1.05 in the minimum wage is based on the inflation that occurred between August 2021 to August 2022. Supply and demand. However, the agency does disclose inflation for metro Phoenix and nearly two dozen other big cities, and Phoenix-area inflation has run hotter than anywhere else in the country, with a reading of 12.1% for the 12 months through October, compared with 7.7% nationally. From 2019 through 2030, the minimum wage will increase annually on a set schedule, provided the unemployment rate in the preceding year does not exceed 8.5%. *Represents approximately 30,000 corporate clients covering 40,000 businesses employing people. Seeing is believing. The average minimum wage of states with the top ten unemployment rates (ranging from 13.8% to 17.5% teen unemployment) was $11.90 per hour, while the average wage for ten states with the lowest unemployment rates (ranging from 5.9% to 7.1% unemployment) was $7.93 per hour. If your employer does not pay adequate overtime wages, you can file an unpaid overtime claim with the Arizona Department of Labor. In addition to the exemption for federally covered employment, the law exempts, among others, employees of a retail or service business with gross annual sales or business done of less than $500,000. Keeping up with minimum wage increases and tax withholdings can be tedious. The increase will either correlate to a rise in the cost of living or a flat rate of $2.00 above the state minimum wage, whichever is higher. Applicable to employers of 6 or more employees. 3 0 obj Tipped Employees: Employers may pay tipped employees up to $3 less than the applicable minimum wage (or $9.80 per hour in 2022), provided the employee's direct cash wage and tips equal or exceed the minimum wage. /Subtype /Image From recruiting and onboarding to people management, compliance and more, we provide technology and expertise to help business leaders solve problems and grow their businesses. #block-googletagmanagerfooter .field { padding-bottom:0 !important; } Lets create value across your portfolio. (This is a large PDF with multiple articles; scroll down to Article 12 on page 94. Is any of our data outdated or broken? The Oregon minimum wage is adjusted annually on July 1 based on a set formula. ol{list-style-type: decimal;} << 6 0 obj THIS POSTER MUST BE CONSPICUOUSLY DISPLAYED IN A PLACE THAT IS. Automate routine tasks, mitigate compliance risks, and drive efficiencies across your organization. The site is secure. Some of these also will see increases in 2023. After that, as with the state minimum, adjustments would be made based on inflation.The Tucson ordinance, though, is designed so that workers get the benefit of whatever calculation is more generous. The initiative would also establish a Department of Labor Standards by April 1, 2022. Arizona's state minimum wage rate is $13.85 per hour. And even if there were deflation, there is no provision for it to ever go down.What restaurants are preparing to do is limit labor costs. While we strive to keep But you can take the manual work out of payroll with Hourly, which automatically deducts taxes and pays them for you. endobj 8 0 obj The current minimum is $12.80 an hour. Arizonas labor laws also state that employees are entitled to overtime pay (of at least time and a half) when they work more than 40 hours in one week. /Height 6 If the highest federal minimum wage is increased in excess of the State minimum wage in effect, then the State minimum wage will increase to the same amount, effective on the same date as the increase in the federal minimum wage. Associated Press Minimum wage set to increase in Arizona in 2022 Arizona's minimum wage will increase from $12.15 an hour to $12.80 an hour on Jan. 1, 2022. PHOENIX Arizona's minimum wage is set to increase again for the fifth straight year in 2022. The two states with the lowest minimum wage are Georgia and Wyoming, both sitting at $5.15; however, employers in Georgia and Wyoming that are subject to the Fair Labor Standards Actmust still pay the $7.25 Federal minimum wage. That's when the state's minimum wage, already one of the highest in the nation, will rise again, with the increase tied to inflation. Living wage: $18.71. 15 However, one state business leader said there's no reason to think. In no case shall the Massachusetts minimum wage rate be less than $0.50 higher than the effective federal minimum rate. @media only screen and (min-width: 0px){.agency-nav-container.nav-is-open {overflow-y: unset!important;}} An official website of the United States government. @media (max-width: 992px){.usa-js-mobile-nav--active, .usa-mobile_nav-active {overflow: auto!important;}} Arizona, Colorado and Maine will incrementally increase their minimum wages to $12 an hour by 2020. . >> Use the legend on the left to highlight different minimum wage categories, and click on The Iowa minimum wage equals the federal minimum wage rate if it is set below the federal rate. Applicable to all employees covered by the federal Fair Labor Standards Act (FLSA) except for agricultural employees and employees of municipalities and the Commonwealth of Puerto Rico. While many states increase the minimum wage in accordance with the cost of living or inflation, Arizona minimum wage from 2017 through 2022 was dictated by a schedule laid out in the 2016 Fair Wages and Healthy Families Act. Arizona Minimum Wage Laws - 2023. endobj The minimum wage will be adjusted annually based upon a set formula. The Arizona Minimum Wage Increase Initiative may appear on the ballot in Arizona as an initiated state statute on November 5, 2024 . How is Arizonas minimum wage changing in the future? 23-363(B), Arizona's minimum wage will increase from $12.80 to $13.85 effective January 1, 2023. Our team of experienced sales professionals are a phone call away. Arizona's minimum wage will increase to $13.85 an hour. Workers' Comp + Payroll made 100% for you. Reach the reporter at russ.wiles@arizonarepublic.com. For employers with fewer than 10 full-time employees at any one location who have gross annual sales of $100,000 or less, the basic minimum rate is $2.00 per hour. 1 The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified. Arizona is seventh-highest in 2022. Control costs and mitigate risk with accurate timekeeping. endobj endobj endobj .manual-search-block #edit-actions--2 {order:2;} The information provided on this publication is for general informational purposes only. 8 0 obj The minimum wage may be adjusted annually based on a set formula. No. /Type /XObject /Border[ 0 0 0]/Rect[ 458.88 170.88 482.88 185.28]/Subtype/Link/Type/Annot>> /ColorSpace /DeviceGray <> But there is more to the Tucson ordinance than just a pay increase for minimum wage workers. While we take all precautions to ensure that the data on this site is correct and up-to-date, we cannot be held liable for the accuracy of the labor law data we present. Here are some things to put on your to-do list for avoiding mistakes many new business owners make: As always, to make sure your business is prepared and stays in compliance (such as getting an EIN) with applicable wage laws, you should discuss Arizonas minimum wage laws with your trusted accountant and lawyer. 2021 minimum wage changes by state Alaska $10.34 Arizona $12.15 Arkansas $11 California Small employers w/ 25 employees or less $13. Through interviews with local newsmakers, KAWC keeps you informed on issues in the region. endobj .agency-blurb-container .agency_blurb.background--light { padding: 0; } Employees receive 1 hour of pay at minimum wage rate in addition to owed wages when spread of hours exceeds 10 hours, there is a split shift, or both. Read these case studies to see why. The minimum wage rate does not apply to any person who is employed by a parent or a sibling; any person who is employed performing babysitting services in the employers home on a casual basis; any person employed by the State of Arizona or the United States government; or any person employed in a small business that grosses less than $500,000 in annual revenue, if that small business is exempt from having to pay a minimum wage under section 206(a) of title 29 of the United States Code. So, whats the current minimum wage in Arizona, and is it going up anytime soon?. Applicable to employers of 4 or more employees, Premium Pay After Designated Hours 1 : Weekly - 40. Employees under 18 years may be paid 85% of the minimum hourly wage rate. p4K"oXaIRG0unk):v=k,Qck5vQ99X`ZjaKcp 'Q$?>hl}/pwpQ!u2tBZOVPO|0S}0z,X%v`J0+X!L`uRlEr-].AJRxaCucL/#u!{he[&\18 [r(,WBVNei"F,F&U X1l {`k-3V.u6X@(Hg9&\.WXwh{Zl2x=QPZLB-)jL b X,qPAx#:uj&Fsl/Co`q7X6Czzb7NR"vX0$KFw`@Fy%8FF0}L,F[P0[a`HrTas6plfEJCQH}:/GE*Tkv-'pc5xX8A $qJ3!>ag7=O_uPnY-QI `B8;fmhmXKg 9Qpx4b`?R%8N`\]9 ^@L $13.85. New 2022 Minimum Wage - Effective January 1, 2022 Phoenix 9/16/2021 Greetings! Paycors compliance solutions help ensure accurate filing and mitigate risk. /ImageMask true Employees who work fewer than 40 hours per week or 52 weeks in a year will earn less. >> Employees 16-17 years of age may be paid 85% of the minimum hourly wage rate. Effective January 1, 2023, through December 31, 2023, Arizona's minimum wage will be $13.85 per hour. Hire and retain staff with earned wage access. endobj Voters in Arizona, Colorado, Maine and Washington approved November ballot measures to raise their respective minimum wages. endobj ''That is borne out by a report from the state Office of Economic Opportunity.For 2021, the most recent data available, fast food cooks already were earning an average $13.58 an hour. A full time minimum wage worker in Arizona working 40 hours a week, 52 weeks a year, will earn $110.80 per day, $554.00 per week, and $28,808.00 per year1. <>/Border[ 0 0 0]/Rect[ 244.8 52.8 348.48 64.32]/Subtype/Link/Type/Annot>> Georgia and Wyoming have the lowest minimum wage. Get insights into your workforce to make critical business decisions. Domestic workers are entitled to 24 hours of consecutive rest each week, and receive premium pay if they work during such period. A business not covered by the federal Fair Labor Standards Act whose gross annual sales are $110,000 or less may pay $4.00 per hour. Break-Even Point Formula and Analysis: How to Calculate BEP for Your Business, How to Accept Apple Pay at Your Small Business, Bank Transfers: What They Are and How to Do Them, Staff Scheduling: How to Make Employee Work Schedules. <>/Border[ 0 0 0]/Rect[ 288 71.04 393.6 95.04]/Subtype/Link/Type/Annot>> The current Arizona minimum wage of $13.85 per hour is the lowest amount a non-exempt employee in Arizona can legally be paid for hourly work. If approved, the amendment would raise the minimum wage in Ohio starting on Jan. 1, 2025. An employee who works a full-time workweek of 40 hours will make $554 per week at the states minimum wage. .h1 {font-family:'Merriweather';font-weight:700;} As summer approaches, $10 million was approved to be added into the HVAC repair and replacement fund for Maricopa County homeowners. The state with the highestminimum wage in 2023 is Californiaat $15.50. For the 12 months ending in August, which is what the Arizona minimum-wage increase is pegged to, Phoenix-area inflation was even higher 13%. The .gov means its official. The State law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act unless the State wage rate is higher than the federal rate. Applicable to employers of two or more employees. That will rise to $13.85 an hour, an increase of $1.05, starting Jan. 1. Everything You Need to Know About the Arizona Minimum Wage, Product Photography 101: How to Photograph Products for eCommerce, How to Start a Free Online Store from Your Square Account, Five Ways Conversational Commerce Strengthens Customer Relationships, Omnichannel Marketing: Definition, Strategy, Tools, and Examples, What to Consider When Creating a Return and Exchange Policy, How To Use Customer Segmentation To Grow Your Business, How to Create a Marketing Strategy for Your Business, 3 New Payment Methods You Should Start Accepting Now, How to Create and Use QR Codes for Your Business, Self-Serve Kiosks: How They Could Work for Your Business. 1This wage or $2.00 more than the state minimum wage, whichever is greater. Here are the 2023 posters: Now that you know how minimum wage works in Arizona, make sure to update your payroll in time for each Jan. 1 increase. Organize your team, manage schedules, and communicate info in real-time. .dol-alert-status-error .alert-status-container {display:inline;font-size:1.4em;color:#e31c3d;} /Length 9 0 R Federal government websites often end in .gov or .mil. The minimum wage is adjusted annually based on a set formula. The Fair Labor Standards Act (FLSA) and Arizona labor law requires all employers in Arizona to visibly display an approved Arizona minimum wage poster, and other Arizona and federal labor law posters, to ensure that all employees are aware of federal and Arizona labor law and overtime regulations. This new city ordinance increases the minimum wage for virtually all employees working within the city limits to $13.00 per hour, effective April 1, 2022. (See Labor Code section 510 for exceptions). The 7th day overtime law, which is separate from the minimum wage law, requires employers who permit covered employees to work seven days in any one workweek to pay the employee at a rate of time and one-half for hours worked on the seventh day when employees work all seven days of the workweek. How should Arizona business owners prepare for changes to the minimum wage? endobj So, if you have an employee that works 45 hours in one week, they will earn $554 for the first 40 hours ($13.85 per regular hour x 40).. Reduce risk, save time, and simplify compliance management. By Howard FischerCapitol Media ServicesPHOENIX -- Workers at the bottom of the Arizona wage scale are going to be legally entitled to a pay hike of $42 a week beginning in January.And you can credit -- or blame inflation.New figures reported Tuesday by the Bureau of Labor Statistics show that costs as measure by the Consumer Price Index for urban consumers, have risen 8.3 percent between August 2021 and last month.What makes that important is that laws approved by voters in 2006 and again in 2016 require annual inflation adjustments based on the August annual figures.Rounded to the nearest nickel, as required by statute, that translates out to $1.05 an hour on top of the current $12.80 figure.A formal announcement, however, won't come until Thursday. Domestic service workers are subject to Hawaii's minimum wage and overtime requirements. Premium pay is required after 45 hours a week in seasonal amusements or recreational establishments. If the combination of direct cash wages and tips falls below Arizona's minimum wage ($12.80 per hour), employers must make up the difference. 1 0 obj Click on a link below to: Frequently Asked Questions About Wage and Earned Paid Sick Time Laws The Fair Wages and Healthy Families Act Minimum Wage and Earned Paid Sick Time Rulemaking (begins on p. 2907) Title: 2023 THE FAIR WAGES AND . KTAR News 92.3 FMs Jeremy Foster contributed to this report. Since then, increases have been tied to inflation, specifically the Consumer Price Index for urban workers, as tracked by the federal Bureau of Labor Statistics. Paycor delivers deep product functionality, standard integrations, and certified expertise in sales and service to meet the needs of the industries and organizations we serve. Get an Arizona all-in-one labor law poster, file an unpaid overtime claim with the Arizona Department of Labor, U.S. Department of Health & Human Services. If so, you may be due for an AC unit replacement. This is greater than the Federal Minimum Wage of $7.25. Ready to transform your business intro a profit-pumping machine? The current Arizona minimum wage rate is $13.85. ACCESSIBLE TO EMPLOYEES. What Is a POS System and How Does It Work? It raised from $12.80 to $13.85 effective from January 1, 2023. Basic Minimum Rate (per hour): $14.20; $15.00 (Long Island, Westchester, & NYC). Some cities in Arizona are raising their minimum wages faster than the state. Amounts considered to be wages for federal tax . /SMask /None>> After deducting income and FICA taxes, an employee working full time and earning minimum wage in Arizona will earn $21,432.03 in a year if they work all 52 weeks. The citys minimum wage will continue to increase each year on Jan. 1 as follows: Effective Jan. 1, 2023, Flagstaff's minimum wage is $16.80 for standard employees and $14.80 for tipped employees.. Beyond that, the Arizona minimum wage will increase based on inflation (a function of the Consumer Price Index). "We're well above the minimum wage in the back of the house. Effective Jan. 1, 2023, the minimum wage in Arizona is $13.85 per hour for standard employees and $10.85 per hour for tipped employees. That will rise to $13.85 an hour, an increase of $1.05, starting Jan. 1. 6 Oklahoma. Thank you! Build a great place to work where employees show up, make a difference and win together. So, they need to earn at least $60.00 in tips so that their total pay is $277. After 2023, the city can continue to raise the minimum wage each year on Jan. 1. Certain other conditions must be met. << Does your air conditioner make weird noises or a burning smell when it starts? So, if the server only makes $40 in tips that week, you have to pay the $20 difference to make sure their total pay is at least equal to the minimum wage rate. The Arizona minimum wage poster, and additional required Arizona labor law posters, are also available on the Arizona labor law posters download page. 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