January 1, 2019, Arizona businesses will see the minimum wage increase to $11.00 per hour.
This is a scheduled bump approved by voters in 2016 through The Fair Wages and Healthy Families Act. The ballot measure gradually increases Arizona’s minimum wage over a period of three years and also requires earned paid sick time for Arizona employees.
The Minimum Wage Schedule Under the “Act”:
January 1, 2018, $10.50 per hour
January 1, 2019, $11.00 per hour
January 1, 2020, $12.00 per hour
There are exceptions to the minimum wage rule including the hourly wage for Tipped Employees.
Employers can pay tipped employees a maximum $3.00 less per hour as long as the employee makes the equivalent of minimum wage for all hours worked each week (tips included). If a tipped employee does not earn the required equivalent, the employer must make up the difference.
Also, tipped employees must receive the tip(s) without influence from the employer.
A tipped employee is one who customarily and regularly receives tips from customers. Waiters, Waitresses, Bellhops, Busboys, Car Wash Attendants, Hairdressers, Barbers, Valet and Service Bartenders, etc. are considered tipped employees.
To speak with Focus HR, Inc. about minimum wage and paid sick time compliance, click here for a free consultation.
To stay on top of important business news in Arizona, bookmark our blog and sign up for our monthly newsletter.