On January 1, Arizona’s statutory minimum wage rose to $12.15 per hour for most wage-earners ($9.15 for workers who earn tips). The state minimum wage requirement applies to nearly all private-sector employees (see exceptions below1). In Flagstaff, the minimum wage is higher, at $15 per hour. The increase reflects the annual inflation adjustment required by the Fair Wages and Healthy Families Act, which Arizona voters approved in 2016 as Proposition 206.
Arizona employers are required to post an updated notice regarding the Fair Wages and Healthy Families Act. The notice can be downloaded from the Industrial Commission of Arizona website, which also offers an FAQ publication regarding minimum wage and earned paid sick time.
The state’s minimum wage does not apply to workers who are employed by a parent or a sibling; perform babysitting services in the employer’s home on a casual basis; employed by the State of Arizona or the federal government; or employed by a “small business” that has annual gross revenues under $500,000 and is exempt from paying minimum wage under Title 29, Section 206(a) of the U.S. Code (this exception is very limited).
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