By: Chris M. Mason
The passing of Proposition 206, referred to as the Healthy Working Families Initiative, raises the minimum wage in Arizona from $8.05 an hour incrementally over the next four years to $12 an hour. Businesses, especially small businesses, need to be aware of all aspects of the new wage and hour measure, which goes into effect January 1, 2017.
First, the $3 an hour credit for tipped workers will not change, as long as an employer can prove that its tipped employees are earning minimum wage or above with tips included. Below is the schedule for wage increases for both hourly and tipped workers:
- January 1, 2017: $10 an hour, $7 an hour for tipped workers
- January 1, 2018: $10.50 an hour, $7.50 an hour for tipped workers
- January 1, 2019: $11 an hour, $8 an hour for tipped workers
- January 1, 2020: $12 an hour, $9 an hour for tipped workers
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