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 a new minimum wage of $18 per hour effective January 1, 2025, and modifies the timeline for annual cost-of-living adjustments, changing the next increase from January 1, 2021, to January 1, 2026. Additionally, it 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 compensation (wages plus tips) meets or exceeds the minimum wage. It also includes a new stipulation that the amended section will only take effect if approved by a three-fourths majority vote in both houses of the legislature.

Statutes affected:
Introduced Version: 23-363