What the Arizona Minimum Wage Increase Means for You

February 1, 2019

Arizona employers and employees can expect big changes this year. With stock markets climbing higher than ever, labor groups across the United States have been campaigning and protesting for an increase to the minimum wage. Although these plans have been in effect since 2016, Arizonans will see the latest increase to their minimum wage.

How Much Will It Increase?

Starting January 1st, the minimum wage for Arizona employees rose from the existing $10.50 per hour to $11.00 per hour. Arizona isn’t the only state to face a minimum wage increase, as 20 states and 12 cities across America are moving forward with increased wages as well.

The minimum wage increase does come with some stipulations, however, as federal and state employees, individuals employed by family members, and those whose company makes less than $500,000 per year will not be entitled to the new minimum wage.

Restaurant employees and other occupations that receive tips will see a reduced increase at just $8.00 per hour to compensate for their income from gratuities.

How Will The Increase Affect the Economy?

Arizona’s economy has undergone rapid expansion over the last decade, with unemployment shrinking from 10.9% in November 2009 to 4.8% in December 2018, and experts saying it will only shrink further.

The new wage increase is the third step in a four-year strategy for improving employee pay, with the minimum wage expected to increase to $12 by 2020. While some were concerned about the impact that an increased wage would have with employers, communities across Arizona are optimistic about the increase and going even further by promising to raise their own minimum wage to $15.50 per hour by 2022.

Approximately 520,000 Arizonans make the minimum wage or will be affected by the increase, and with full-time workers expected to see an annual increase of $1,000, more families will have a disposable income and the economic boost to Arizona will be substantial.

Minimum wage increases are just one part of the complex machine that is Arizona’s economy, but we at YAVAPAI@WORK are here to help you understand and succeed. Give our employment experts a call today at 928-778-1422 or visit us online to find a job that works for you.

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