Effective January 1, 2022, Arizona’s minimum wage will increase to $12.80 per hour. Arizona’s minimum wage rate is adjusted annually to reflect changes in the cost of living.
Arizona allows employers to pay their tipped employees a minimum wage rate that is $3 lower than the state’s minimum wage rate. For 2022, the tipped employee minimum wage rate is $9.80.
Employers are required to subsidize a tipped employee’s minimum wage rate if the employee’s tips and gratuities are insufficient to allow the employee to receive wages that are at least equal to the state’s minimum wage rate.
Arizona employers must display a minimum wage poster to notify employees of their rights under state law. The Industrial Commission of Arizona has published an updated minimum wage model poster which employers can use to satisfy this requirement.
Next Steps for Employers
Arizona employers should review and adjust their payroll systems to make sure non-exempt employees receive wages that are at least equal to the state’s minimum wage rate and ensure that an updated poster is displayed in a prominent location at the workplace.