The Minimum Wage is the minimum compensation an employee receives from an employer for the services performed throughout a specific period unless the employer or employee is exempt by state or federal law to do so. This minimum wage is not subject to decrease by individual contract or collective agreement.
This one mainly aims to protect the workers from any unfair payment policy. The Minimum Wage laws guarantee that everyone obtains an equal and fair share of the benefits of growth and a living wage for everyone employed and needs such protection.
In the USA, the minimum wage varies from state to state. If an individual thinks of shifting to Arizona for jobs or career aspects, stick around the article to get a clear understanding.
Minimum Wage in Arizona
From January 1, 2023, Arizona's minimum wage is $13.85/hour.
A full-time minimum wage employee in Arizona in 2023 will make $110.80/Day, $554.00/Week, and $28,808.00/Year, working 40 hours per week for 52 weeks.
This minimum wage is higher than the Federal Minimum Wage of $7.25.
It increased by $1.05 from $12.80 to $13.85, that is, by 8.20%. Arizona is one of 29 US states with a minimum wage higher than the federal minimum wage.
Based on the rise in inflation and cost of living between August 2020 and August 2021, as reported in the Consumer Price Index by the U.S. Bureau of Labor Statistics (BLS), the minimum wage was raised.
Overtime Minimum Wage
Every employee that works more than 40 hours per week is entitled to at least 1.5 times the standard applicable minimum wage. The minimum overtime pay is $20.73 / hour.
Who Qualifies for Minimum Wage?
Other than specific groups of student workers, tipped employees, and a few jobs considered exempt, all employees and workers in Arizona are entitled to receive minimum wage.
Region Wise Minimum Wages
Numerous municipalities and cities have recently set their minimum wage rates. The most recent rates are listed below:
- Tucson: Tucson voters approved Proposition 206 on November 2, 2021, to gradually raise the city minimum wage to $15/hour by 2025 and tie it to inflation subsequently. The minimum wage will rise to $14.25/Hour on January 1, 2024, and $15/Hour at the beginning of 2025. From January 1, 2023, the Tipped Wages will increase by $0.50 to $10.50.
- Flagstaff: The Minimum Wage is $16.80/Hour, and the Tipped Wage is $14.80/Hour.
Who is Exempt from Receiving Minimum Wage?
There are various exemptions from receiving the minimum wage in Arizona that allow some workers to receive a salary lower than it:
- Anyone babysitting or doing domestic work or employed by their relatives.
- Individuals hired by the government directly or the state of Arizona are exempt from minimum wage.
- Businesses with annual revenue lower than $500,000 are permitted to pay employees less than the minimum wage as long as they are not exempt by the FLSA. This is a limited exemption because FLSA covers most small firms.
Arizona Subminimum Wage
The FLSA specifies special minimum wage rates for several types of employees and any minimum wage exemptions mentioned above. If you fall into one of the following categories, employers may pay less than minimum wage in Arizona:
1. Minors and Young Workers
For the first 90 days of employment, workers under the age of 20 are entitled to a special minimum wage of $4.25/hour under the Youth Minimum Wage Program. Young workers are supposed to benefit from this exemption as a "training program."
The employee must be granted a raise to the full minimum wage once the first 90 days have elapsed (or, if earlier, when the employee turns 20).
2. Full-Time and Vocational Students
Some employers are allowed to pay full-time students (both from high school and college) as little as 85% of the minimum wage.
A registered student who is 16 years old or older and enrolled in a vocational school may also be hired for as little as 75% of the usual minimum wage, thanks to the "Student-Learner Program."
These exceptions are intended to serve as an "educational program" for the student workers by enabling businesses to recruit less-experienced workers at a lower rate.
For the above conditions, the business must get a certificate allowing them to do so from the Department of Labor under the "Full-Time Student Program.
3. Tipped Employee
A tipped employee (such as a waitress, barber, service bartender, etc.) is an employee who customarily and usually receives tips.
Employers may pay tipped workers up to $3.00 per hour less than non-tipped workers as long as they receive the minimum wage for all hours worked each week, including the tips. But the employer must compensate the difference if a tipped worker doesn't make the minimum wage even with tips.
Only the employee is entitled to the tips, and the employer has no control over them.
For 2023, the minimum wage for tipped employees is 10.85.
4. Employees with Disabilities
According to the Fair Labor Standards Act, any employer may pay a worker with a physical or mental impairment that affects the quantity and (or) quality of their job less than the minimum wage. Employers who wish to pay disabled workers less than the minimum wage must request a certificate from the Department of Labor.
With the help of this scheme, employers will be more likely to hire disabled individuals, assisting them in finding employment.
History of Minimum Wage in Arizona State
The Fair Wages and Healthy Families Act (the "Act"), Proposition 206, was an initiative that appeared on November 8, 2016, ballot in Arizona. More than 58% of voters voted in favor of it. The Act raises the state's minimum wage, which will take effect on January 1, 2017, and grants workers the right to start accruing earned paid sick time on July 1. Since then, Arizona's minimum wage has steadily increased in January of each year.
The history of Arizona's minimum wage since 2006 is shown in the table below.
1. What are Arizona Laws regarding Unions and Unionization?
Since Arizona is a state that is classified as a "right-to-work" state, employees who choose not to join a union at their place of employment are protected from termination. Similarly, a company has no right to utilize a candidate's union membership as a factor in deciding whether or not to hire them. Moreover, the right-to-work legislation safeguards workers' ability to leave unions without fear of dismissal.