Arizona Laws 23-363. Minimum wage
Terms Used In Arizona Laws 23-363
- Commission: means the industrial commission of Arizona, any successor agency, or such other agency as the governor shall designate to implement this article. See Arizona Laws 23-362; Version 2
- Employee: means any person who is or was employed by an employer but does not include any person who is employed by a parent or a sibling, or who is employed performing babysitting services in the employer's home on a casual basis. See Arizona Laws 23-362; Version 2
- Employer: includes any corporation, proprietorship, partnership, joint venture, limited liability company, trust, association, political subdivision of the state, individual or other entity acting directly or indirectly in the interest of an employer in relation to an employee, but does not include the state of Arizona, the United States, or a small business. See Arizona Laws 23-362; Version 2
- Wage: means monetary compensation due to an employee by reason of employment, including an employee's commissions, but not tips or gratuities. See Arizona Laws 23-362; Version 2
(Caution: 1998 Prop. 105 applies)
A. Employers shall pay employees no less than the minimum wage, which shall be not less than:
1. $10 on and after January 1, 2017.
2. $10.50 on and after January 1, 2018.
3. $11 on and after January 1, 2019.
4. $12 on and after January 1, 2020.
B. The minimum wage shall be increased on January 1, 2021 and on January 1 of successive years, by the increase in the cost of living. The increase in the cost of living shall be measured by the percentage increase as of August of the immediately preceding year over the level as of August of the previous year of the consumer price index (all urban consumers, U.S. city average for all items) or its successor index as published by the U.S. department of labor or its successor agency, with the amount of the minimum wage increase rounded to the nearest multiple of five cents.
C. For any employee who customarily and regularly receives tips or gratuities from patrons or others, the employer may pay a wage up to $3.00 per hour less than the minimum wage if the employer can establish by its records of charged tips or by the employee’s declaration for federal insurance contributions act (FICA) purposes that for each week, when adding tips received to wages paid, the employee received not less than the minimum wage for all hours worked. Compliance with this provision will be determined by averaging tips received by the employee over the course of the employer’s payroll period or any other period selected by the employer that complies with regulations adopted by the commission.