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Arizona’s Minimum Wage Increases Again on January 1, 2022

The Arizona minimum wage will increase yet again from $12.15 per hour to $12.80 per hour. The increase will take effect on January 1, 2022 and will remain in effect until December 31, 2022. This means that Arizona employers will need to start paying the higher minimum wage ($12.80 per hour) for all hours worked after January 1, 2022.

The Arizona minimum wage will likely increase yet again on January 1, 2023 because the Fair Wages and Healthy Families Act provides for a cost-of-living increase on January 1 of each year.

It is important to note that the federal minimum wage ($7.25 per hour) is much lower than the Arizona minimum wage. Arizona employers must pay the higher of the federal or state mandated minimum wage, which means Arizona employers have to pay the higher Arizona minimum wage. Some Arizona cities, such as Flagstaff, have a higher minimum wage. Employers in those cities must pay the higher minimum wage.

Arizona employers must also post the Arizona minimum wage poster in a conspicuous place. With many employees working remotely, employers should include a link to the poster with their employees’ paychecks or through an employee intranet or portal. The poster is available for free, and an employer can face fines and penalties if they fail to post it in a conspicuous place or make it reasonably available to employees working from home. 

The failure to comply with wage laws can be very costly for employers. Depending on the type of wages not paid, the employee can recover two or three times the amount they should have been paid. Employees can also recover an award of attorney fees, which often exceeds the amount in controversy.

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