minimum wage increase

HB 2295 raises Arizona's minimum wage to $18 per hour by January 1, 2027, with scheduled increases from $10 in 2017 up to $12 in 2020. After 2020, the wage will automatically adjust annually based on the Consumer Price Index (measuring cost-of-living changes) to maintain its value. The bill also allows employers to pay tipped workers a base wage up to $3 less per hour, provided total tips plus wages meet the minimum wage requirement. This applies to most hourly workers in Arizona covered by state minimum wage law, including those in restaurants and service industries. The bill requires a three-fourths legislative vote to take effect.