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What is the minimum wage in Arizona?

Federal & State Law Editorial TeamLast reviewed: 2026-04-30

Arizona's minimum wage is set by the Fair Wages and Healthy Families Act (Prop. 206, voter-approved Nov. 2016), codified at A.R.S. §§ 23-362 to 23-364.

1. Current Rate

  • $14.70/hour as of January 1, 2025.
  • Annually adjusted to CPI-U (US city average) by the Industrial Commission of Arizona.

    • 2. Tipped Workers

    Tipped employees may be paid up to $3.00/hour less than minimum — so cash wage of $11.70/hour in 2025 — provided tips bring the employee to $14.70 (A.R.S. § 23-363(C)). If not, employer must make up the difference.

    3. Local Minimum Wages (2025)

  • Flagstaff: $17.85 (Prop. 414, 2016) — Flagstaff phased ahead of state and continues to rise. Tipped cash wage in Flagstaff: $16.85.
  • Tucson: $15.00 (Prop. 206 city version, 2021) — phasing to a level $2 above state, indexed.
  • Local preemption was attempted via SB 1487, but Arizona courts have allowed Flagstaff's voter-initiated wage to stand under the state constitution's local-control provisions.

    • 4. Paid Sick Time (Earned)

    A.R.S. § 23-372 — Prop. 206 also requires earned paid sick time:

  • Employers with 15+ employees: accrue 1 hour per 30 worked, up to 40 hours/year.
  • Employers with <15 employees: up to 24 hours/year.

    • 5. Overtime

    Arizona has no state overtime law. Federal FLSA controls: 1.5x after 40 hours/week.

    6. Exemptions (A.R.S. § 23-362(E))

  • Persons employed by parents or siblings.
  • Babysitters working in employer's home on casual basis.
  • Persons employed by the State or U.S. government.
  • Small business owners with gross annual revenue < $500,000 not subject to FLSA.

    • 7. Salary Threshold

    Arizona follows the federal $684/week threshold for the white-collar exemptions.

    8. Enforcement

    Industrial Commission of Arizona, Labor Department. Private right of action under A.R.S. § 23-364:

  • Treble damages for unpaid wages.
  • 2-year statute of limitations (3 years willful).
  • Attorney's fees and costs.
  • Anti-retaliation protections with rebuttable presumption.

    • This is legal information, not legal advice.

    When to Talk to a Lawyer
    • Your Flagstaff or Tucson employer pays only the state minimum
    • Your tip credit shortfall is unpaid
    • Your employer denied earned paid sick time under § 23-372
    Related Statutes & Laws
    • A.R.S. § 23-362
    • A.R.S. § 23-363
    • A.R.S. § 23-364
    • A.R.S. § 23-372
    • Ariz. Const. Art. II, § 7
    • Flagstaff Prop. 414

    This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.