This bill proposes significant updates to the current statutes regarding minimum wage in Arizona. It would repeal remove the existing sections 23-362 added by laws in 1997 and by Proposition 202 in 2006, and introduce a new section 23-362 that establishes a new minimum wage structure. The new law would set the minimum wage at $18 per hour starting January 1, 2020, and would include provisions for annual increases based on the cost of living, as well as additional increases of $1 per hour in 2026 and 2027. Furthermore, the bill clarifies definitions related to employment, such as "employer," "employee," and "tipped employee," and outlines specific wage requirements for tipped employees, allowing employers to pay them less than the minimum wage under certain conditions. The act also includes provisions for severability, ensuring that if any part of the act is found invalid, the remaining provisions will still apply. Additionally, it stipulates that the act will only take effect upon a three-fourths affirmative vote from both houses of the legislature.

Statutes affected:
Introduced Version: 23-362, 23-363