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Az minimum wage increasing to $8.05
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Az minimum wage increasing to $8.05

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Arizona's lowest paid workers will see another nickel and dime added to their hourly wages, as the state's minimum wage will increase from $7.90 to $8.05 per hour on Jan. 1, 2015.

A 2006 ballot measure pegged the lowest legal rate of pay to inflation. With the increase, approved by the Industrial Commission of Arizona in October, the state's rate will be 80 cents higher than the federal minimum.

Less than 1 percent of the state's workforce — about 17,000 workers, according to 2013 data from the Bureau of Labor Statistics — were paid less than the new rate last year. Most of those work in food service, where tipped workers can be paid less than the standard minimum.

The bottom rate for tipped workers will be bumped will also be bumped 15 cents, to $5.05, on Jan. 1, as the new minimums take effect. Under the law, employers may pay up to $3 an hour less than the standard minimum wage to tipped employees.

A person earning the new minimum wage would be paid $322 per week, or $16,744 annually.

Under Proposition 202, passed in 2006 by 65 percent of Arizona voters, increases in the state's minimum wage are automatic every year, and based on the Consumer Price Index, a measure of inflation.

Minimum wage by year

  • 2007: $6.75 (federal: $5.85)
  • 2008: $6.90 (federal: $6.55)
  • 2009: $7.25 (federal: $7.25)
  • 2010: $7.25 (federal: $7.25)
  • 2011: $7.35 (federal: $7.25)
  • 2012: $7.65 (federal: $7.25)
  • 2013: $7.80 (federal: $7.25)
  • 2014: $8.05 (federal: $7.25)

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