On October 16, 2014, the Industrial Commission of Arizona (ICA) announced an increase to Arizona’s minimum wage. Effective January 1, 2015, Arizona’s minimum wage will increase to $8.05 per hour. This 15 cent increase over the 2014 minimum wage of $7.90 per hour is based on the 1.7 percent increase in the cost of living for Arizonans over a one-year period beginning in August 2013 using the national Consumer Price Index.

Effective January 1, 2015, employers must pay tipped employees not less than $5.05 per hour in direct wages. The ICA defines a “tipped” employee as “an employee who customarily and regularly receives tips, including the occupation of waiter, waitress, bellhop, busboy, car wash attendant, hairdresser, barber, valet, and service bartender.” The employee must receive the tip free of any control by the employer.

Employers should remember to post the revised Arizona minimum wage poster with the 2015 rate, but the ICA has not yet released the new poster.

Note: this article was published in the October 29, 2014 issue of Arizona eAuthority.