However, Arizona doesnt have the highest minimum wage in the UnitedStates. Instead the state law authorizes the adoption of the federal minimum wage rate via administrative action. /ImageMask true Although the federal minimum wage of $7.25 has not budged since 2009, nearly half of the country increased their minimum wages for hourly workers after January 1, 2022 to compensate their employees, and more than twenty will provide additional increases going into 2023. Seiden said many businesses are already offering higher pay and still struggling to fill openings. @media (max-width: 992px){.usa-js-mobile-nav--active, .usa-mobile_nav-active {overflow: auto!important;}} This is greater than the Federal Minimum Wage of $7.25. Or use payroll software like Hourly that will automatically do it for you! However, one state business leader said there's no reason to think. The BLS doesn't track inflation at the state level. And that specifically includes the restaurant and fast food industry which fought hard -- and unsuccessfully -- to convince voters not to adopt a state minimum wage.Had those businesses been successful, Arizona would have the same $7.25 an hour minimum wage that has been federal law now since 2009.But Steve Chucri, president of the Arizona Restaurant Association, told Capitol Media Services neither the federal wage nor even the new state minimum wage is particularly relevant right now when members of his association are hiring. As an employer, its important to keep on top of these changes so youre paying your employees what is legally required. Premium Pay After Designated Hours 1 : Weekly - 40, 7th day. endobj Through interviews with local newsmakers, KAWC keeps you informed on issues in the region. The minimum wage will be adjusted annually based upon a set formula. Some states require workers who work over a certain number of daily hours to be eligible for this overtime rate as well (Arizona law does not specify a daily overtime limit). Large employer (enterprise with annual revenues of $500,000 or more), Premium Pay After Designated Hours 1 : Weekly - 48, Small employer (enterprise with annual revenues of less than $500,000), Employees under 18 years may be paid $8.63 per hour, Premium Pay After Designated Hours 2 : Weekly - 40. Last Updated: January 1, 2023 | Read Time: 12 min. 2 Poverty line for a family of two in the lower 48 published 2016 by the U.S. Department of Health & Human Services. The national poverty line for a family unit consisting of two people is $16,020.00 per year. More than 20 states will raise their minimum wage in 2023. PHOENIX The minimum wage in Arizona is going up by 65 cents to $12.80 per hour in 2022, officials announced last week. Qualifying health insurance NOT offered by employer: Qualifying health insurance offered by employer: The Nevada minimum wage is adjusted annually based on a set formula. On July 1, 2023, the minimum wage will increase to $11.25 for employees not offered qualifying health insurance and to $10.25 per hour for employees offered qualifying health insurance. California Labor Code section 510. Engage new hires with onboarding and control costs with timekeeping. Sen. Martin Quezada, D-Phoenix, recently introduced a bill that would increase the state's minimum wage to $20 an hour beginning Jan. 1, 2022, and increase it each year based on the rate of inflation. Heres our guide to choosing and moving to a better payroll provider. Manage all employee tasks and documents in one place. /BitsPerComponent 8 <>/Border[ 0 0 0]/Rect[ 90.24 380.16 240.96 391.68]/Subtype/Link/Type/Annot>> The Arizona minimum wage will increase yet again from $12.15 per hour to $12.80 per hour. Arizonas hourly minimum wage is higher than the federal minimum wage of $7.25 per hour, which is mandated by the U.S. Department of Labor in the Fair Labor Standards Act (FLSA). "We're well above the minimum wage in the back of the house. The State law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act unless the State wage rate is higher than the federal rate. Flagstaff is also gradually lowering the wage credit for tipped workers so they will eventually earn the regular hourly minimum wage plus their tips., The tipped minimum wage in the city will be as follows:. They work 20 hours in one week. Frequently Asked Questions About Wage and Earned Paid Sick Time Laws, Minimum Wage and Earned Paid Sick Time Rulemaking (begins on p. 2907). These rates are in effect from December 31, 2022 through December 30, 2023. After 2023, the city can continue to raise the minimum wage each year on Jan. 1. Tucson's minimum wage is currently $0.00 higher than the Arizona minimum wage, and it was last raised to $13.85 per hour on 01/01/2023. The average minimum wage of states with the top ten unemployment rates (ranging from 13.8% to 17.5% teen unemployment) was $11.90 per hour, while the average wage for ten states with the lowest unemployment rates (ranging from 5.9% to 7.1% unemployment) was $7.93 per hour. And even if there were deflation, there is no provision for it to ever go down.What restaurants are preparing to do is limit labor costs. 8 0 obj ACCESSIBLE TO EMPLOYEES. <> Workers' Comp + Payroll made 100% for you. The current minimum wage in Arizona is $13.85 per hour, which is $6.6 more than the federal minimum wage. Reduce tedious admin and maximize the power of your benefits program. /Height 6 <>/Border[ 0 0 0]/Rect[ 244.8 52.8 348.48 64.32]/Subtype/Link/Type/Annot>> #views-exposed-form-manual-cloud-search-manual-cloud-search-results .form-actions{display:block;flex:1;} #tfa-entry-form .form-actions {justify-content:flex-start;} #node-agency-pages-layout-builder-form .form-actions {display:block;} #tfa-entry-form input {height:55px;} The citys minimum wage will continue to increase each year on Jan. 1 as follows: Effective Jan. 1, 2023, Flagstaff's minimum wage is $16.80 for standard employees and $14.80 for tipped employees.. The information provided on this publication is for general informational purposes only. <> Intuitive software to help pay employees accurately and on time. Does your air conditioner make weird noises or a burning smell when it starts? And that is largely driven by a 17.1% year-over-year increase in housing costs, a reflection of sharply higher home prices and rents.-30-On Twitter: @azcapmedia, History of Arizona and federal minimum wageYear / State / Federal2006 / $5.15 / $5.152007 / $6.75 / $5.852008 / $6.90 / $6.552009 / $7.25 / $7.252010 / $7.25 / $7.252011 / $7.35 / $7.252012 / $7.65 / $7.252013 / $7.80 / $7.252014 / $7.90 / $7.252015 / $8.05 / $7.252016 / $8.05 / $7.252017 / $10.00 / $7.252018 / $10.50 / $7.252019 / $11.00 / $7.252020 / $12.00 / $7.252021 / $12.15 / $7.252022 / $12.80 / $7.252023 / $13.85 / $7.25-30-, PublishedSeptember 15, 2022 at 5:08 PM MST. The following states have passed legislation to reach a $15 minimum wage in 2023 and beyond. Premium pay not applicable to employees who request compensating time off in lieu of premium pay. % If your employer does not pay adequate overtime wages, you can file an unpaid overtime claim with the Arizona Department of Labor. What is the Arizona under 18 minimum wage? FOX 10's Matt Galka has. Plan, manage, and execute pay increases and rewards. Voters in Arizona, Colorado, Maine and Washington approved November ballot measures to raise their respective minimum wages. >> If the combination of direct cash wages and tips falls below Arizona's minimum wage ($12.80 per hour), employers must make up the difference. However, their tipped minimum wage is $10.85 times 20 hours, which is $217. As for employees, about 34% of Arizonans earlier this year were earning $15 an hour or less, according to a recent report by Oxfam America. But that is conditional on proof that their tips are making up the difference.Where the higher wage may hurt, said Chucri, is down the road, after inflation has cooled and after there is better alignment between the number of open jobs and the number of people who want one.Under other circumstances, he said, that could allow employers to offer less.Only thing is, the state minimum wage law is a one-way ratchet: It can only go up. Get The 2022 Arizona Employment Law Handbook (Printable PDF) today! The minimum wage may be adjusted annually based on a set formula. A Veterans Affairs health care facility in Arizona endangered its maintenance employees by allowing them to work on steam lines that exposed them to hazards, according to federal inspectors. .paragraph--type--html-table .ts-cell-content {max-width: 100%;} Washington is the state with the highest minimum wage in 2023 at $15.74 per hour. /Type /XObject endobj $13.85. Any work in excess of 12 hours in one day or in excess of eight hours on any seventh day of a workweek shall be paid no less than twice the regular rate of pay. /Height 6 1 st January 2021. Well help reduce costs & mitigate risks. Get an Arizona all-in-one labor law poster, file an unpaid overtime claim with the Arizona Department of Labor, U.S. Department of Health & Human Services. 15 0 obj endobj Leave payroll and taxes to the experts so you can focus on your business. << (Arizona's minimum wage. Exceptions apply to an employee working pursuant to an alternative workweek adopted pursuant to applicable Labor Code sections and for time spent commuting. The current minimum wage rate is re-evaluated yearly based on these values. The minimum wage is adjusted annually on July 1 based on a set formula. At the other end of the scale, 20 states follow the federal minimum of $7.25 an hour, including Pennsylvania, Texas, North Carolina, Wisconsin, Utah and Idaho. By Howard FischerCapitol Media ServicesPHOENIX -- Workers at the bottom of the Arizona wage scale are going to be legally entitled to a pay hike of $42 a week beginning in January.And you can credit -- or blame inflation.New figures reported Tuesday by the Bureau of Labor Statistics show that costs as measure by the Consumer Price Index for urban consumers, have risen 8.3 percent between August 2021 and last month.What makes that important is that laws approved by voters in 2006 and again in 2016 require annual inflation adjustments based on the August annual figures.Rounded to the nearest nickel, as required by statute, that translates out to $1.05 an hour on top of the current $12.80 figure.A formal announcement, however, won't come until Thursday. Amounts considered to be wages for federal tax . Tucson: as of January 1, 2023 the minimum wage is $13.85 Tipped wage is $10.85. The .gov means its official. Applicable to employers of 4 or more employees, Premium Pay After Designated Hours 1 : Weekly - 40. Hire skilled nurses and manage PBJ reporting. The minimum wage in Ohio is $10.10 per hour. the information up to date, we make no representations or warranties of any kind about the completeness, accuracy, An action plan to help you achieve HR excellence based on Paycors proprietary data and research. endobj .usa-footer .grid-container {padding-left: 30px!important;} <>/Border[ 0 0 0]/Rect[ 243.84 1.92 366.72 13.44]/Subtype/Link/Type/Annot>> If you have read the FAQ and still cannot find the information you need, please contact us with your question. In 2023 choosing and moving to a better payroll provider employer does pay... Automatically do it for you Labor Code sections and for time spent commuting to a. Leave payroll and taxes to the experts so you can file an unpaid overtime with! 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