The Arizona minimum wage is set to increase from the current rate of $7.35 per hour to $7.65 per hour on January 1, 2012. The federal minimum wage is only $7.25 putting Arizona’s minimum wage $.40 from the federal minimum. The $.30 increase is the result of the Raise the Minimum Wage for Working Arizonans Act that was passed in 2006. This act states that when the Consumer Price Index for All Urban Consumers (CPI-U) increases so does the minimum wage in Arizona. From August of 2010 to August of 2011 the CPI-U increased 3.8% which resulted in the raise in the Arizona minimum wage. Tipped employees’ wage will increase to $4.65 per hour as they can be paid at $3.00 below the minimum wage as long as the employer can establish they meet the minimum wage with combined hourly wage and tips.
All Arizona employers will need to update their Minimum Wage Poster for 2012. You can visit to obtain the most current poster.