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. Paycors HR software modernizes every aspect of people management, which saves leaders time and gives them the powerful analytics they need to build winning teams. Here are some things to put on your to-do list for avoiding mistakes many new business owners make: As always, to make sure your business is prepared and stays in compliance (such as getting an EIN) with applicable wage laws, you should discuss Arizonas minimum wage laws with your trusted accountant and lawyer. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. /Length 9 0 R Save time, pay employees from wherever you are, and never worry about tax compliance. That ballot measure bumped up the minimum wage in four steps, from $8.05 an hour in late 2016 to $12 an hour by Jan. 1, 2020. 7 0 obj How should Arizona business owners prepare for changes to the minimum wage? You are entitled to be paid the higher state minimum wage. A full time minimum wage worker in Arizona working 40 hours a week, 52 weeks a year, will earn $110.80 per day, $554.00 per week, and $28,808.00 per year 1. Another exemption applies to individuals working at small businesses that generate less than $500,000 in annual revenue. endobj Attract top talent, develop employees, and make better decisions with actionable data. Organize your team, manage schedules, and communicate info in real-time. If you have questions about the Arizona minimum wage, please ask us and someone will respond to you as soon as possible. Proposition 206 was designed to increase the city's minimum wage incrementally from $12.15 to $15 by January 1, 2025. Track your regular work hours, break time, and overtime hours. Employers with annual gross receipts of $372,000 or more, Employers with annual gross receipts under $372,000, The minimum wage is adjusted annually based on a set formula, Employers of ten or more full time employees at any one location and employers with annual gross sales over $100,000 irrespective of number of full time employees. 11 Check out Hourly, an easy-to-use payroll service that lets you update payroll in seconds. Voters in Arizona, Colorado, Maine and Washington approved November ballot measures to raise their respective minimum wages. The Texas State minimum wage law does not contain current dollar minimums. "And in the back of the house, we're also seeing the introduction of robotic arms that are working in certain parts of the kitchen, whether it's turning over fries or flipping burgers, whatever the case might be,'' he said.Arizona voters mandated in 2006 that the state have its own minimum wage not tied to the federal figure. Use the free Arizona job search utility to find local job openings hiring now. Tipped Employees: Employers may pay tipped employees up to $3 less than the applicable minimum wage (or $9.80 per hour in 2022), provided the employee's direct cash wage and tips equal or exceed the minimum wage. Increase engagement and inspire employees with continuous development. Georgia and Wyoming have the lowest minimum wage. That set the bottom of the pay scale here at $6.75 an hour, $1.60 higher than what federal law mandated at the time.Plus there were inflation adjustments.A decade later, voters decided to turbocharge the raises, imposing a $10 minimum with automatic increases up to $12 as of 2020.Two years ago, with inflation at just 1.3%, that gave workers at the bottom an extra 15 cents an hour.By last year, inflation hit 5.3%, adding another 65 cents to reach the current $12.80.What's driving this year's inflation figure, not surprisingly, is the cost of fuel.There has been a sharp drop recently, including a 10.6% reduction just last month. Applicable to employers of two or more employees. /Filter /FlateDecode The 7th day overtime law, which is separate from the minimum wage law, requires employers who permit covered employees to work seven days in any one workweek to pay the employee at a rate of time and one-half for hours worked on the seventh day when employees work all seven days of the workweek. 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. /Length 11 0 R <>/Border[ 0 0 0]/Rect[ 90.24 318.72 195.84 330.24]/Subtype/Link/Type/Annot>> Also, you can only use the tipped minimum wage to pay employees who regularly receive tips from customers, such as servers, bellhops, bussers, hairdressers, car wash attendants, and valets.. 1 st January 2022. So, if you have an employee that works 45 hours in one week, they will earn $554 for the first 40 hours ($13.85 per regular hour x 40).. The increase will either correlate to a rise in the cost of living or a flat rate of $2.00 above the state minimum wage, whichever is higher. 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. The Utah state minimum wage law does not contain current dollar minimums. << (This is a large PDF with multiple articles; scroll down to Article 12 on page 94. Therefore, Arizona's overtime minimum wage is $20.78 per hour, one and a half times the regular Arizona minimum wage of $13.85 per hour. Certain other conditions must be met. All communication from Paycor should be confirmed by your companys legal, tax, benefit, accounting or investment advisor before making any decisions. By law, Arizona's minimum wage now is pegged to inflation. An agency within the U.S. Department of Labor, 200 Constitution Ave NW 2 0 obj <> 3 0 obj The State law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act. 5 0 obj For employees of employers with gross annual sales of less than $371,000, the state minimum wage is $7.25 per hour. In 2022, the Arizona state minimum wage increased by $0.65 in January 2022, from $12.15 (2021) to $12.80 per hour. For . However, one state business leader said there's no reason to think. Arizona employers may pay 18 year olds and minors the youth minimum wage of $4.25 for the first 90 days of employment. Eliminate large down payments and end-of-year surprises. People need workers, so theyre offering bonuses theyre paying above minimum wage on average in most counties now.. State requires employers to pay tipped employees a minimum cash wage above the minimum cash wage required under the federal Fair Labor Standards Act ($2.13/hour) At least $10 weekly for full-time employees or $2.00 daily for part-time in hotels and restaurants. But you can take the manual work out of payroll with Hourly, which automatically deducts taxes and pays them for you. Heres our guide to choosing and moving to a better payroll provider. endobj Paycors expertise goes far beyond minimum wage. View our product demos to get a deeper dive into the technology. Federal minimum wage is still $7.25, but more than 20 states will increase minimum wage in 2023. 1) endobj /Width 32 Automate routine tasks, mitigate compliance risks, and drive efficiencies across your organization. /CreationDate (D:20210916172516-04'00') Some of these also will see increases in 2023. <>/Border[ 0 0 0]/Rect[ 292.8 187.2 363.84 198.72]/Subtype/Link/Type/Annot>> 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). Amounts considered to be wages for federal tax . In fact, had my 2015 bill to increase the minimum wage to $15 an hour that was indexed to median wages became law, the federal minimum wage this January would be at least $17.40 an hour. /ca 1.0 Help us keep Minimum-Wage.org up-to-date! While Phoenix follows the minimum wage rate of the state of Arizona, Tucson and Flagstaff have their own set of labor lawsincluding a separate minimum wagefor workers in those cities. If you are a full-time worker on the Arizona state minimum wage, your earnings could be as follows: Daily Minimum Wage: $110.80 (based on an 8-hour day) Weekly Minimum Wage: $554 (based on a 40-hour week) /Subtype /Image As an employer, its important to keep on top of these changes so youre paying your employees what is legally required. The current Arizona minimum wage of $13.85 per hour is the lowest amount a non-exempt employee in Arizona can legally be paid for hourly work. the information up to date, we make no representations or warranties of any kind about the completeness, accuracy, In no case shall the Massachusetts minimum wage rate be less than $0.50 higher than the effective federal minimum rate. To further understand the minimum wage in Arizona, you can refer to the 2021 minimum wage poster. <> (Arizona's minimum wage currently is $12.80 per hour.) Thereafter it will increase annually based on the Consumer Price Index, and rising automatically to match any higher federal or state minimum wage. Beyond that, the Arizona minimum wage will increase based on inflation (a function of the Consumer Price Index). ''That is borne out by a report from the state Office of Economic Opportunity.For 2021, the most recent data available, fast food cooks already were earning an average $13.58 an hour. PHOENIX - The minimum wage in Arizona is going up by 65 cents to $12.80 per hour in 2022, officials announced last week. endobj So, whats the current minimum wage in Arizona, and is it going up anytime soon?. Arizona is one of the many states that have passed a law to gradually raise the minimum wage. Join us at our exclusive partner conference. For 2023, thats $13.85 per hour for non-tipped employees and $10.85 for tipped employees. p4K"oXaIRG0unk):v=k,Qck5vQ99X`ZjaKcp 'Q$?>hl}/pwpQ!u2tBZOVPO|0S}0z,X%v`J0+X!L`uRlEr-].AJRxaCucL/#u!{he[&\18 [r(,WBVNei"F,F&U X1l {`k-3V.u6X@(Hg9&\.WXwh{Zl2x=QPZLB-)jL b X,qPAx#:uj&Fsl/Co`q7X6Czzb7NR"vX0$KFw`@Fy%8FF0}L,F[P0[a`HrTas6plfEJCQH}:/GE*Tkv-'pc5xX8A $qJ3!>ag7=O_uPnY-QI `B8;fmhmXKg 9Qpx4b`?R%8N`\]9 ^@L The State law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act when the federal rate is greater than the State rate. We pulled together an overview of Arizonas minimum wage increases as well as some ideas about how to prepare for those costs. Control costs and mitigate risk with accurate timekeeping. The U.S. average unemployment rate for 16 to 19 year olds was 10.6%. The minimum wage is adjusted annually based on a set formula. Effective January 1, 2023, Arizona's Minimum Wage Is: HEALTHY FAMILIES ACT. Living wage: $18.71. If you forget (or fail) to change your payroll to reflect increases in the minimum wage, your employees can file a complaint using the states Minimum Wage Claim Form with the Arizona Industrial Commission. Instead the state adopts the federal minimum wage rate by reference. 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. 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. Hosted by Lou Gum, Arizona Edition, KAWC's news program, is our focus on the issues facing Arizona. (See Labor Code section 510 for exceptions). FOX 10's Matt Galka has. #block-googletagmanagerfooter .field { padding-bottom:0 !important; } /BitsPerComponent 8 While many states increase the minimum wage in accordance with the cost of living or inflation, Arizona minimum wage from 2017 through 2022 was dictated by a schedule laid out in the 2016 Fair Wages and Healthy Families Act. Starting Jan. 1, employers across the state will have to pay workers at least $12.80 an hour, the . There is a minimum wage of $12.93 per hour for seasonal and small employers who employee fewer than 6 people. If the highest federal minimum wage is increased in excess of the State minimum wage in effect, then the State minimum wage will increase to the same amount, effective on the same date as the increase in the federal minimum wage. Human resource teams need to gain efficiencies in their workday. California Labor Code section 510. Subscription implies consent to our privacy policy. Gross taxable wages refers to the amount that meets the federal definition of wages contained in U.S. Code 3401. The jobless rate in metro Phoenix has hovered around 3.5% for months, despite Federal Reserve efforts to slow the economy through interest-rate hikes. This will be $1.55 more than the federal minimum wage. Post-2020, the minimum wage is rising annually on 1st . The Arizona minimum wage in 2023 and beyond will adjust based on inflation and cost of living. Annual increases are mandated by Proposition 206, which statewide voters approved in 2016. States with higher minimums include California ($15 an hour), Washington ($14.49) and Massachusetts ($14.25), along with the District of Columbia ($16.10), according to a list compiled by the Labor Law Center. << How is Arizonas minimum wage changing in the future? The Commission will review complaints and ask you to pay the employees two or three times their wages owed if you skipped out on paying them.. An action plan to help you achieve HR excellence based on Paycors proprietary data and research. 4 0 obj Tucson: as of January 1, 2023 the minimum wage is $13.85 Tipped wage is $10.85. See our vetted tech & services alliances. The national poverty line for a family unit consisting of two people is $16,020.00 per year. Employers w/ 26 or more $14 The following California city and . Have a story idea or tip? However, their tipped minimum wage is $10.85 times 20 hours, which is $217. Leverage AI to automate sourcing and increase candidate diversity. The FLSA guarantees all AZ employees adequate overtime compensation for all qualifying overtime hours worked. For employers with fewer than 10 full-time employees at any one location who have gross annual sales of $100,000 or less, the basic minimum rate is $2.00 per hour. The higher state minimum wage in Arizona, and never worry about tax compliance 510 for exceptions ) changing! 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