Everything You Need to Know About the Arizona Minimum Wage

Everything You Need to Know About the Arizona Minimum Wage
Small business employers and their employees should be aware of the minimum wage requirements in Arizona.
by Meredith Galante Nov 01, 2022 — 3 min read
Everything You Need to Know About the Arizona Minimum Wage

Arizona is one of the many states that have passed a law to gradually raise the minimum wage. For small business owners in the state, this is an essential topic.

As an employer, it’s important to keep on top of these changes so you’re paying your employees what is legally required. We pulled together an overview of Arizona’s minimum wage increases as well as some ideas about how to prepare for those costs.

What is the minimum wage in Arizona?

The new minimum wage in Arizona will increase to $12.80 on January 1, 2022, up from $12.15 per hour the previous year. This will be $1.55 more than the federal minimum wage. Some cities in Arizona are raising their minimum wages faster than the state. Flagstaff and Tuscan, for instance, are raising their minimum wages to $15 an hour. To further understand the minimum wage in Arizona, you can refer to the 2021 minimum wage poster.

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.

Minimum Wage in Arizona

January 1, 2018 $10.50
January 1, 2019 $11.00
January 1, 2020 $12.00
January 1, 2021 $12.15
January 1, 2022 $12.80

How is Arizona’s minimum wage changing in the future?

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 Arizona minimum wage in 2023 and beyond will adjust based on inflation and cost of living.

Will there eventually be a $15 minimum wage in Arizona? In some parts of the state, it’s already getting closer. 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). Beyond that, the Arizona minimum wage will increase based on inflation (a function of the Consumer Price Index).

Flagstaff Minimum Wage Schedule

2018 $11
2019 $12
2020 $13
2021 $151
2022 $15.501

1This wage or $2.00 more than the state minimum wage, whichever is greater. Increases to the Arizona minimum wage will be subject to increases in the cost of living in that state. The minimum wage in Flagstaff will be affected by that measure.

How should Arizona business owners prepare for changes to the minimum wage?

As the Arizona minimum wage is set to increase over the next few years, it’s time to get prepared. 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 Arizona’s minimum wage laws with your trusted accountant and lawyer.

Meredith Galante
Meredith Galante is a freelancer writer based in New York City. She's been writing for Square since 2017 where she's covered everything from the best software for restaurants to use to maximize profit, minimum wage laws across the country, and tips for entrepreneurs to maximize their impact.


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