This bill proposes updates to section 23-363 of the Arizona Revised Statutes regarding the minimum wage. The current law mandates that employers pay employees not less than the minimum wage, which is set at $10 per hour starting January 1, 2017, and increases annually to $12 per hour by January 1, 2020. The bill introduces an additional wage increase to $18 per hour effective January 1, 2025, and modifies the timeline for future cost-of-living adjustments to begin in 2026 instead of 2021. It also clarifies that the increase in the cost of living will be based on the consumer price index published by the United States Department of Labor, with adjustments rounded to the nearest five cents.

Furthermore, the bill maintains the provision allowing employers to pay tipped employees up to $3.00 less than the minimum wage, provided that the total of tips and wages meets the minimum wage requirement. It also establishes that compliance with this provision will be determined by averaging tips over the employer's payroll period. Lastly, the bill stipulates that its amendments will only take effect if approved by a three-fourths majority vote in both houses of the legislature.

Statutes affected:
Introduced Version: 23-363