minimum wage; definitions; increase

HB 2849, the "One Fair Wage Act," gradually increases Arizona's minimum wage from $10 hourly in 2017 to $18 hourly by 2027, with automatic annual adjustments starting in 2021 based on the U.S. Consumer Price Index (CPI) to account for cost-of-living changes. It temporarily allows employers to pay tipped workers a base wage $3.00 below the minimum wage if tips bring their total earnings up to the minimum, but this exception ends on January 1, 2030. The bill requires a three-fourths vote in both legislative chambers to take effect, as mandated by the Arizona Constitution. This directly affects all Arizona hourly workers and their employers, particularly those in service industries relying on tips.