In 2006, the Raise the Arizona Minimum Wage for Working Arizonans Act became law. In part it provided for interim increases in the Arizona’s minimum wage. As of January 1, 2012, the minimum wage in Arizona became $7.65 per hour. The Act provides for increases in Arizona’s minimum wage based on cost of living increases and uses the Department of Labor, Consumer Price Index of All Urban Consumers (CPI-U). Arizona’s rate is .40 cents per hour higher than the federal minimum wage and you are required to pay the higher of the two wage rates.

Arizona's minimum wage law ("AMWA") has some important variations from the federal minimum wage law. The following entities are exempt from this law:

A person employed in a small business not subject to the Federal Fair Labor Standards Act (FLSA) and which has less than $500,000 in gross annual revenue; A person who is employed by a parent or a sibling; A person who is employed performing babysitting services in the employer's home on a casual basis; A person employed by the State of Arizona or the United States government; and there are also special rules regarding "tipped" employees.