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What is Arizona’s minimum wage?

Under the Fair Wages and Healthy Families Act (the “Act”), the minimum wage in 2018 is $10.50 per hour; $11.00 per hour in 2019; and $12.00 per hour in 2020. On January 1, 2021, the Arizona minimum wage will increase each year by the cost of living.

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The Fair Wages and Healthy Families Act (the “Act”) began as a ballot initiative (Proposition 206) on the November 8, 2016 ballot. It establishes a new state minimum wage each year through 2020, with annual raises thereafter based on the increase in the cost of living. It also entitles employees to accrue earned paid sick time.

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Which employers are subject to Arizona’s minimum wage laws?

Arizona’s minimum wage laws apply to all “employers.” Arizona law defines an “employer” in the minimum wage context as any corporation, proprietorship, partnership, joint venture, limited liability company, trust, association, political subdivision of the state, individual or other entity acting directly or indirectly in the interest of an employer in relation to an employee, but does not include the state of Arizona, the United States, or a small business.