Arizona, Flagstaff, Tucson minimum wage rates rise January 1

On January 1, 2021, Arizona’s minimum wage increased to $12.15 per hour, establishing a rank of seventh highest among the 50 states (tied with Maine). At the time of this writing, seven states either had no minimum wage laws or had established a minimum wage below the federal minimum wage of $7.25 per hour. Many other states across the country enacted laws that implement periodic increases either based on the passage of time or the cost of living. With changes coming across the country in January 2022, Arizona will hold steady in seventh place among the states.

Cue the increase

On September 16, 2021, the Industrial Commission of Arizona announced the state’s minimum wage will increase by 65 cents to $12.80, one of the largest increases Arizona has seen since the lockstep jumps mandated by the 2016 Arizona Fair Wages and Healthy Families Act ceased. The increase is based on the increase in inflation between August 2020 and August 2021, as published by the U.S. Bureau of Labor Statistics’ Consumer Price Index.

As a reminder, the Act permits employers of tipped employees to take a $3.00 per hour tip credit. Keep in mind that tips must make up the difference, so employees make at least the state minimum wage counting tips.

Flagstaff’s rate higher than state’s