Arizona and Flagstaff minimum wage rises again on January 1, 2023

On January 1, 2022, Arizona’s minimum wage increased to $12.80 per hour, making it the sixth highest among the 50 states (according to the minimum wages posted on laborlawcenter.com). While we continue to see an increase in state and local minimum wage statutes, according to minimum-wage.org, 21 states either had no minimum wage laws or had adopted the federal minimum wage of $7.25 per hour. Many other states and cities across the country enacted laws that implement periodic increases either based on the passage of time or based on the cost of living. Although Arizona has held strong in its ranking among the states, many localities across the country, including Flagstaff have minimum wage rates at $15 per hour or higher.

Cue the increase

On September 15, 2022, the Industrial Commission of Arizona announced the state’s minimum wage will increase by $1.05 to $13.85, an even larger increase than the one we saw this year. The bump is based on the increase in inflation between August 2021 and August 2022, which we all know has been significant (as published by the U.S. Bureau of Labor Statistics’ Consumer Price Index).

As a reminder, Arizona’s minimum wage law permits employers of tipped employees to take a $3-per-hour tip credit. Keep in mind that tips must make up the difference, so employees make at least the state minimum wage counting tips.

Flagstaff’s rate remains higher than state’s