Most Arizonans know that minimum wage is not a living wage for most people. While paying rent and other expenses with a minimum wage paycheck may be possible for a single person with no children, experts calculate that it takes around $240,000 a year for a family of four to live comfortably in Phoenix.
The upcoming increase in Arizona’s minimum wage will bring some relief to workers across the state. It will also help families keep up with inflation rates.
The Impact Of Proposition 206
Young workers who are currently seeking their first jobs may not remember Proposition 206. It was a law that Arizona voters approved in 2016 to raise the minimum wage from $8.05 to $10.00 an hour. Incremental annual increases were to roll out over nine years.
By 2024, the minimum wage had increased significantly to $14.35. That amount far outpaces the federal minimum wage, which has remained stagnant at $7.25 for the last 15 years.
Starting January 1, 2025, Arizona employers will have to begin paying minimum wage workers at least $14.70 an hour. The 35-cent increase is smaller than bumps received in previous years, but the amount is tied directly to the most current Consumer Price Index, which reports a 2.5% increase in inflation between 2023 and 2024.
More Good News
An increase of .35 an hour may not seem like much, but for full-time employees, an extra $56 a month can help them meet basic needs. In all, the state minimum wage has increased $6.65 since 2016. There is also evidence that a raise in the minimum wage creates a ripple effect that lowers wage inequality.
In addition, workers already earning more than minimum wage may see an increase in their pay as well. While employers are only mandated to increase pay for minimum wage workers, continuing to pay more experienced or more educated employees the same as new hires is unrealistic in most cases.
There is no guarantee your paycheck will get bigger, of course. However, seasoned workers are in a better position to negotiate for higher wages when the minimum wage increases.
What If My Employer Refuses To Pay The New Minimum Wage?
Minimum wage increases in Arizona are legally mandated. If your employer is not in compliance with the law, you may be entitled to file a complaint with the U.S. Department of Labor.
If you believe you are owed back wages or that your employer is breaking wage laws, contact an employment lawyer. An attorney with experience in Arizona employment law can provide up-to-date advice and help you protect your rights.
What About Tipped Workers?
Minimum wage laws differ for tipped employees. Some view this discrepancy as discrimination, but tips are considered part of your wages. Currently, tipped workers in Arizona are paid a minimum cash wage of $3 less per hour than the state minimum wage. When the minimum wage increases to $14.70 in 2025, tipped workers will be entitled to at least $11.70 per hour.
Make The Most Of Making More
The .35 increase to minimum wage is scheduled for January 1, 2025. This will be the last change related to Proposition 206.
An extra $672 a year isn’t life-changing, but it can make life a little easier. Workers already earning more than the minimum wage may also benefit from the increase. Some employers could be more open to offering raises if it means keeping seasoned workers on board.
If you have questions about these changes or believe your employer is not compliant, contact Houk Employment Attorneys to schedule a free consultation at (480) 569-2377.
Contact the Phoenix Employment Attorneys at Houk Employment Attorneys Today For Help With Your Case
For more information, please contact an experienced employment attorneys at Houk Employment Attorneys to schedule an initial consultation today. Our employment law firm is conveniently located near you. We have an office in Phoenix, AZ.
Houk Employment Attorneys
1850 N Central Ave Suite 2010, Phoenix, AZ 85004
(480) 569-2377
