This bill proposes significant updates to the current minimum wage statutes in Arizona. Under the new provisions, the minimum wage will be set at $18 per hour starting January 1, 2027, replacing the previous incremental increases that began at $10 in 2017 and rose to $12 by 2020. Additionally, the bill mandates annual cost-of-living adjustments to the minimum wage starting January 1, 2028, with an added increase of $1 per hour on January 1, 2028, and again on January 1, 2029, following the cost-of-living adjustment. The bill also clarifies that if the cost of living decreases, the minimum wage will remain unchanged for that year.

Furthermore, the bill eliminates the provision that allowed employers to pay a lower wage to employees who receive tips, establishing that all employees must be paid the minimum wage regardless of tips starting January 1, 2030. Additional language is included to ensure that the statute does not conflict with federal law and to clarify the severability of its provisions. The act is titled the "One Fair Wage Act" and requires a three-fourths affirmative vote from both houses of the legislature to take effect.

Statutes affected:
Introduced Version: 23-363