Arizona Minimum Wage — tipped & Flagstaff calculator

Frequently Asked Questions

• What is Arizona's minimum wage in 2026?

  Arizona's minimum wage is $15.15 per hour, effective January 1, 2026, under Proposition 206 (ARS 23-363, Fair Wages and Healthy Families Act). The rate is indexed to the Consumer Price Index (CPI) each year and announced by the ICA each October. It exceeds the federal FLSA floor of $7.25/hr by more than 100%.

• What is the minimum wage for tipped employees in Arizona in 2026?

  Employers may pay tipped employees a direct wage of $12.15/hr — up to $3.00 below the $15.15/hr state minimum (the Arizona tip credit). Tips must bring the employee's total hourly earnings to at least $15.15/hr in any given workweek. If tips fall short, the employer must make up the difference dollar-for-dollar.

• What is Flagstaff's minimum wage in 2026?

  Flagstaff's minimum wage is $18.35 per hour effective January 1, 2026, under the city's Minimum Wage Ordinance. Flagstaff does not allow a tip credit — all workers (including tipped employees) who work 25 or more hours per year within Flagstaff city limits must receive the full $18.35/hr directly from the employer.

• Are there other Arizona cities with a minimum wage higher than the state rate?

  Flagstaff is the only Arizona city with its own minimum wage ordinance above the state floor. Arizona state law generally preempts municipalities from setting wages below the state rate; Flagstaff's higher ordinance pre-dates that framework. Phoenix, Tucson, Scottsdale, Mesa, Chandler, and all other Arizona cities use the statewide $15.15/hr rate.

• How does Arizona's tip credit work compared to the federal FLSA tip credit?

  Federal FLSA allows a tip credit of up to $5.12/hr (direct wage floor: $2.13/hr). Arizona's tip credit is more employer-restrictive: only $3.00/hr (direct wage floor: $12.15/hr). In both systems, tips must bring the total to the applicable minimum; Arizona's higher baseline means the absolute total owed to tipped workers is much higher than under federal law.

• Does Arizona's minimum wage increase automatically each year?

  Yes. Proposition 206 (ARS 23-363) requires the ICA to calculate and announce the new rate each October, effective the following January 1, using the prior year's Consumer Price Index increase. The rate can only go up or stay flat — it cannot decrease. Employers must comply from January 1 with no further legislative action required.

• Are small employers or part-time workers exempt from Arizona's minimum wage?

  No. Arizona's minimum wage applies to virtually all employers and employees regardless of business size or hours worked per week. There is no small-business exemption. Part-time, seasonal, and temporary workers all receive the same minimum hourly rate. Limited exemptions exist for certain government entities and specific training programs.

• Who enforces Arizona's minimum wage and where do I file a complaint?

  The Industrial Commission of Arizona (ICA) Labor Department enforces minimum wage claims. File a wage claim at azica.gov/labor-wage-claims-main-page or call (602) 542-4515. Employees who prevail may recover unpaid wages plus damages equal to twice the unpaid wages, plus reasonable attorney fees under ARS 23-364. Claims must be filed within one year of the violation.

• What notice must Arizona employers post about the 2026 minimum wage?

  Arizona employers must display the ICA's official minimum wage poster in a conspicuous location accessible to all employees. The poster is updated annually and available free at azica.gov/document-category/labor-posters. Flagstaff employers must additionally post the city's Minimum Wage Ordinance notice. New employees must receive written notice of their applicable wage rate at time of hire.

• How does Arizona's 2026 minimum wage compare to neighboring states?

  Arizona's $15.15/hr (2026) is higher than Nevada's $12.00/hr, Utah's $7.25/hr (federal floor), and New Mexico's $12.00/hr, but lower than California's $16.50–$17.00/hr range and Colorado's $14.81/hr. Among neighboring states, Arizona is second only to California in minimum wage for general private-sector workers.