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Beginning January 1, 2017, the Arizona minimum wage will increase from $8.05 per hour to $10.00 per hour. The Industrial Commission's 2017 model minimum wage notice is available here. $10.50 per hour in 2018; $11.00 per hour in 2019; and $12.00 per hour in 2020.
Arizona law requires employers to pay a minimum wage of $8.05 an hour in 2016 instead of the federal minimum wage of $7.25 an hour. The state rate is adjusted annually for changes in the federal consumer price index (CPI).
The minimum wage in Arizona is determined by the Industrial Commission of Arizona (ICA). ICA has the option to increase the rate on Jan. 1 of each year. That decision is made based on the increase in the cost of living, which is measured by the Consumer Price Index (CPI).
§ 23-363(B), Arizona's minimum wage will increase from $12.80 to $13.85 effective January 1, 2023. The $1.05 increase in minimum wage is based on the increase in inflation between August 2021 and August 2022, as published in the U.S. Bureau of Labor Statistics' Consumer Price Index.
Hear this out loud PauseFrom 2023 onward, California's minimum wage will be adjusted based on the national consumer price index (CPI), which measures variation in the cost of living over time.