Make sure you’re compliant with Arizona’s wage payment statutes

Over the past year, I’ve responded to several “Notice of Payment Compliance Complaints” from the Industrial Commission of Arizona (ICA), the state agency responsible for enforcing Arizona wage payment compliance. These notices are issued when an employee complains to the ICA that an employer isn’t following one of the several basic tenets involving the timing requirements of wage payments in Arizona. So long as the employer is following the law, a simple signed “acknowledgment” to the ICA will suffice. But are you certain you’re following Arizona’s wage payment statutes?

What is Arizona’s minimum wage?

As an initial reminder, Arizona’s minimum wage increased to $15.15 per hour ($12.15 if taking the tip credit) on January 1, 2026. Tucson’s minimum wage is set slightly higher than the state minimum wage this year at $15.45 per hour ($12.45 for tipped employees).

Flagstaff eliminated the tip credit in 2026, so all employees in the city must be paid the significantly higher city minimum wage of $18.35 per hour.

How often must I pay my employees?