The proposed bill amends section 23-363 of the Arizona Revised Statutes, concerning the state's minimum wage. The bill introduces a new minimum wage of $15 per hour, effective from January 1, 2025. Additionally, it updates the annual cost of living adjustment to the minimum wage to begin on January 1, 2026, with the increase based on the consumer price index rounded to the nearest multiple of $0.05.

The bill also clarifies language regarding tipped employees, allowing employers to pay them up to $3.00 per hour less than the minimum wage, provided that the combination of tips and wages meets or exceeds the minimum wage. Compliance with this provision is determined by averaging the employee's tips over the employer's payroll period or another compliant period. The bill requires a three-fourths majority vote in each house of the Arizona legislature for it to become effective.

Statutes affected:
Introduced Version: 23-363