Arizona's minimum wage to increase Jan. 1
The minimum wage in Arizona is set to increase from $12.80 to $13.85 effective Jan. 1, 2023, due voter-approved Proposition 206, which increased the legal wage floor and tied annual pay bumps to inflation.
Prop. 206, the Fair Wages and Healthy Families Act passed in 2016, established a new state minimum wage each year through 2020, with annual raises after based on the increase in the cost of living.
According to the law, there are certain exemptions and employers are permitted to pay employees receiving tips up to $3.00 per hour less than the minimum wage, provided that the employees earn at least minimum for all hours worked each week.
The Bureau of Labor Statistics calculates inflation using the Consumer Price Index, which is based on the cost of food, shelter, transportation, fuel, clothing and more, and measures the change in prices paid by consumers for goods and services.
According to the U.S. Bureau of Labor Statistics, the CPI rose 7.1 percent over the year ended November 2022, with the cost of housing the largest contributor to monthly increases.