View all Articles

Arizona Announces $12.80 Minimum Wage Rate for 2022

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.

Tipped Employees

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. 

Required Poster

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.

HR Works, headquartered in Upstate New York, is a human resource management outsourcing and consulting firm serving clients throughout the United States for over thirty years. HR Works provides scalable strategic human resource management and consulting services, including: affirmative action programs; benefits administration outsourcing; HRIS self-service technology; full-time, part-time and interim on-site HR managers; HR audits; legally reviewed employee handbooks and supervisor manuals; talent management and recruiting services; and training of managers and HR professionals.