Arizona
Arizona Minimum Wage (2027): $15.65 an Hour From Jan. 1
Independently fact-checked against primary sources (last audited September 30, 2026). · Law checked current as of November 7, 2026. · 11 primary sources cited on this page. How we verify our legal content
Arizona's minimum wage is $15.15 per hour in 2026, effective January 1, 2026 under A.R.S. 23-363. The Industrial Commission of Arizona has announced that the rate becomes $15.65 per hour on January 1, 2027, according to its 2027 minimum wage poster. Employers may pay tipped employees up to $3.00 per hour less than the minimum wage if tips make up the difference. Arizona law lets cities and towns set higher local minimum wages, and Flagstaff and Tucson have them.
Information last verified on September 30, 2026, with the 2027 section checked on November 6, 2026. This article has not been reviewed by a licensed lawyer.
Jurisdiction scope: This page covers the Arizona Fair Wages and Healthy Families Act minimum wage provisions (A.R.S. Title 23, Chapter 2, Article 8) and the federal Fair Labor Standards Act (FLSA) minimum wage overlay. It does not cover paid sick leave, overtime detail or other states.
Arizona minimum wage in 2027: what changes January 1
Arizona's minimum wage rises to $15.65 per hour on January 1, 2027, as announced by the Industrial Commission of Arizona (ICA) on its 2027 minimum wage poster.
Status as of November 6, 2026: Announced. The 2027 poster states "Effective January 1, 2027, Arizona's Minimum Wage Is: $15.65 per hour." It keeps the tip credit at a maximum of $3.00 per hour less than the minimum wage, and only if the employer's records show that wages plus tips reached the minimum wage for each week.
Two cities have announced higher 2027 rates. Flagstaff's minimum wage will be $18.95 per hour from January 1, 2027, and the city requires all employees to receive the full minimum wage whether or not they regularly earn tips. Tucson's minimum wage rises to $16.00 per hour from January 1, 2027 through December 31, 2027, and employers there may claim a tip credit of up to $3.00 for tipped employees.
What is the minimum wage in Arizona in 2026?
Arizona's minimum wage is $15.15 per hour, effective January 1, 2026. In its September 29, 2025 release, the Industrial Commission of Arizona (ICA) said the wage would rise from $14.70 to $15.15 in accordance with A.R.S. 23-363(B), a $0.45 increase based on inflation between August 2024 and August 2025.
What will Arizona's minimum wage be in 2027?
The ICA's 2027 poster states "Effective January 1, 2027, Arizona's Minimum Wage Is: $15.65 per hour." That is an announcement by the agency, and it takes effect on January 1, 2027. The statute sets the method: on January 1 of each year, the minimum wage increases by the percentage increase in the consumer price index (all urban consumers, U.S. city average, all items) as of August of the preceding year over August of the year before, with the increase rounded to the nearest multiple of five cents (A.R.S. 23-363(B)).
| Effective date | State minimum wage | Status |
|---|---|---|
| January 1, 2026 | $15.15 | In force |
| January 1, 2027 | $15.65 | Announced by the Industrial Commission of Arizona |
Tipped workers in Arizona
Arizona allows a tip credit of up to $3.00 per hour. A.R.S. 23-363(C) lets an employer pay an employee who customarily and regularly receives tips a wage up to $3.00 per hour less than the minimum wage. The employer must be able to establish, from its records of charged tips or the employee's declaration for Federal Insurance Contributions Act purposes, that for each week the employee received not less than the minimum wage for all hours worked once tips are added to wages.
Subtracting $3.00 gives a minimum cash wage of $12.15 in 2026, and $12.65 under the announced 2027 rate. The poster states the $3.00 maximum rather than a dollar cash wage. Compliance is determined by averaging tips over the payroll period or another period consistent with the commission's regulations. If tips fall short, the employer owes the difference.
Local minimum wages in Arizona
Arizona law expressly allows local rates. A.R.S. 23-364(I) states that a county, city or town may by ordinance regulate minimum wages and benefits within its geographic boundaries but may not provide for a minimum wage lower than the state rate.
One text conflict is worth knowing about. Arizona's code has two sections numbered 23-362. The one in the minimum wage article (Article 8) is a definitions section adopted by voters in 2006 (Proposition 202). A separate 1997 section with the same number, titled "Minimum wage; prohibition" and listed under Article 7 (Payment of Wages), says in subsection B that no political subdivision may establish a minimum wage that exceeds the federal minimum wage. Both appear on the legislature's website. This page relies on 23-364(I) for local authority and did not find a court ruling resolving the difference.
- Flagstaff: the City of Flagstaff has a local minimum wage higher than the state rate. Its page states that the rate will be $18.95 per hour effective January 1, 2027, and that all employees must receive the full minimum wage regardless of tips. Check the City of Flagstaff minimum wage page for the current rate and any scheduled increase.
- Tucson: the City of Tucson's Minimum Wage Act page states that the rate rises to $16.00 per hour from January 1, 2027 through December 31, 2027, with a tip credit of up to $3.00 for tipped employees. Check the city's page for coverage rules.
If you work in a city with its own ordinance, read that city's page, because its coverage rules, such as hours-worked thresholds, may differ from the state's.
Who is not covered
The definitions section of the minimum wage article (A.R.S. 23-362, Article 8) and the ICA poster exclude these workers. The poster says the Act does not apply to any person employed by a parent or a sibling, any person employed performing babysitting services in the employer's home on a casual basis, any person employed by the State of Arizona or the United States government, or any person employed in a small business that grosses less than $500,000 in annual revenue, if that small business is exempt from paying a minimum wage under section 206(a) of title 29 of the United States Code.
This page did not find a youth or training sub-minimum in the rate provision, A.R.S. 23-363. It has not reviewed the learner and apprentice provisions elsewhere in Title 23, so contact the ICA about a specific arrangement.
How Arizona's minimum wage relates to the federal minimum wage
The federal minimum wage is $7.25 per hour. Where both laws apply, the higher standard governs: the FLSA does not excuse noncompliance with a state law establishing a higher minimum wage (29 U.S.C. 218(a)). Arizona's $15.15 is well above $7.25, so covered Arizona employees are owed the Arizona rate. Read the federal minimum wage page for how the FLSA works. To compare other states, see minimum wage by state.
For comparison with neighboring states, see New Mexico, Utah and Colorado.
What to do if you are paid less than the Arizona minimum wage
The ICA Labor Department handles minimum wage claims where an employer does not pay Arizona's minimum wage or does not meet posting or recordkeeping requirements. It offers a minimum wage claim form and a separate claim form for retaliation. Claims can begin on the ICA minimum wage claim form.
The Industrial Commission says a minimum wage claim must be filed within one year from the date the wages were due, and it dismisses claims for wages that were due more than one year earlier. The longer periods below apply to a lawsuit.
The remedies in A.R.S. 23-364 include:
- Civil action: a law enforcement officer or any private party injured by a violation may sue (23-364(E)).
- Time limit for a lawsuit: no later than two years after a violation last occurs, or three years for a willful violation, with the period tolled during a commission investigation (23-364(H)).
- Damages: the balance of wages owed plus interest and an additional amount equal to twice the underpaid wages. A prevailing plaintiff also recovers attorney's fees and costs (23-364(G)).
- Retaliation: an adverse action within 90 days of protected activity raises a presumption of retaliation, which the employer can rebut by clear and convincing evidence (23-364(B)). Retaliation damages are set by the commission or court, not less than $150 per day.
- Records and posting: employers must keep payroll records for four years (23-364(D)) and face a civil penalty of at least $250 for a first recordkeeping or posting violation and at least $1,000 for a subsequent or willful one (23-364(F)).
For the wider process of collecting what you are owed, see unpaid wages, and use the overtime calculator to check overtime hours.
Disclaimer: This page provides general legal information, not legal advice. It covers A.R.S. Title 23, Chapter 2, Article 8 and the federal Fair Labor Standards Act as verified on September 30, 2026. For your situation, consult a lawyer licensed in Arizona or the Industrial Commission of Arizona Labor Department.
Related
- Federal minimum wage
- Arizona final paycheck laws
- Arizona at-will employment laws
- Unpaid wages
- Overtime calculator
Last updated: November 6, 2026.
Frequently Asked Questions
What is the minimum wage in Arizona?
$15.15 per hour since January 1, 2026, under A.R.S. 23-363(B) as announced by the Industrial Commission of Arizona.
What will the minimum wage be in Arizona in 2027?
$15.65 per hour effective January 1, 2027, according to the Industrial Commission's 2027 minimum wage poster, which keeps the maximum tip credit at $3.00 per hour. Flagstaff ($18.95) and Tucson ($16.00) have announced higher local rates for 2027.
What is the tipped minimum wage in Arizona?
Employers may pay tipped workers up to $3.00 per hour less than the minimum wage if wages plus tips reach the full minimum wage each week (A.R.S. 23-363(C)). That works out to $12.15 in 2026.
How does Arizona decide each year's increase?
On January 1 each year the wage rises by the August-to-August change in the consumer price index, rounded to the nearest five cents (A.R.S. 23-363(B)).
Can Arizona cities set a higher minimum wage?
Yes. A.R.S. 23-364(I) lets a county, city or town regulate minimum wages by ordinance if the rate is not lower than the state's. Flagstaff and Tucson have higher local rates.
Does A.R.S. 23-362 ban local minimum wages?
Arizona has two sections numbered 23-362. The one in the minimum wage article is a 2006 definitions section. A separate 1997 section with the same number, under Article 7, still displays on the legislature's website with language capping local wages at the federal level, which conflicts with 23-364(I). This page found no court ruling resolving the difference.
Who is exempt from the Arizona minimum wage?
Under the definitions section of the minimum wage article (A.R.S. 23-362, Article 8) and the ICA poster: people employed by a parent or sibling, casual babysitters in the employer's home, state and federal government employees, and workers at certain small businesses grossing less than $500,000 that are exempt under 29 U.S.C. 206(a).
How long do I have to sue for unpaid minimum wages in Arizona?
Two years after the violation last occurs, or three years for a willful violation (A.R.S. 23-364(H)).
How much can I recover for an Arizona minimum wage violation?
The unpaid wages plus interest and an additional amount equal to twice the underpaid wages, plus attorney's fees and costs for a prevailing plaintiff (A.R.S. 23-364(G)).
Updates
Governing law re-checked for recent changes
Independently fact-checked against the cited primary sources
The Law Behind This Article
This article rests on the statutory provisions below, held in our own legal record and retrieved from the official source. Tap a section to read the operative text.
Arizona Revised Statutes, Title 23 (Labor), Chapter 2 (EMPLOYMENT PRACTICES AND WORKING CONDITIONS), Article 8 (Minimum Wage and Employee Benefits)
§ 23-363Minimum wageIn force
(Caution: 1998 Prop. 105 applies) A. Employers shall pay employees no less than the minimum wage, which shall be not less than: 1. $10 on and after January 1, 2017. 2. $10.50 on and after January 1, 2018. 3. $11 on and after January 1, 2019. 4. $12 on and after January 1, 2020. B. The minimum wage shall be increased on January 1, 2021 and on January 1 of successive years, by the increase in the cost of living. The increase in the cost of living shall be measured by the percentage increase as of August of the immediately preceding year over the level as of August of the previous year of the consumer price index (all urban consumers, U.S. city average for all items) or its successor index as published by the U.S. department of labor or its successor agency, with the amount of the minimum wage increase rounded to the nearest multiple of five cents. C.
Official text (excerpt) · last checked 2026-08-04 · Read the full text in our law library · Verify at azleg.gov
§ 23-364EnforcementIn forcecited in 2 of our articles
(Caution: 1998 Prop. 105 applies) A. The commission is authorized to enforce and implement this article and may promulgate regulations consistent with this article to do so. For purposes of this section: (1) "article" shall mean both article 8 and article 8.1 of this chapter; (2) "earned paid sick time" is as defined in section 23-371, Arizona Revised Statutes; (3) "employer" shall refer to the definition of employer in section 23-362, Arizona Revised Statutes, for purposes of minimum wage enforcement and shall refer to the definition of employer in section 23-371, Arizona Revised Statutes, for purposes of earned paid sick time enforcement; and (4) "retaliation" shall mean denial of any right guaranteed under article 8 and article 8.1 of this chapter and any threat, discharge, suspension, demotion, reduction of hours, or any other adverse action against an employee for the exercise of any right guaranteed herein including any sanctions against an employee who is the recipient of public benefits for rights guaranteed herein. Retaliation shall also include interference with or punishment for in any manner participating in or assisting an investigation, proceeding or hearing…
Official text (excerpt) · last checked 2026-08-04 · Read the full text in our law library · Verify at azleg.gov
Cited in 114 court opinions in our collectionLatest citing opinion in our collection: 2026
Opinions citing this section in our collection:
- Meyer v. State (Court of Appeals of Arizona 2019, 246 Ariz. 188)“…issue in this appeal falls under the enforcement provision, A.R.S. § 23-364, which empowers a county, city, or town…”
- ASSOCIATED v. CITY OF PHOENIX (Court of Appeals of Arizona 2026)“…zsos.gov/election/2006/info/ PubPamphlet/english/Guide.pdf; A.R.S. § 23-364(I) (2007). We decide whether the 2006 l…”
- Arizona Chamber of Commerce & Industry v. Kiley (Arizona Supreme Court 2017, 242 Ariz. 533)“…206 provides a funding source for the ICA tasks by amending A.R.S. § 23-364(G) to permit the imposition of civil pe…”
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
Also relied on in: Unpaid Wages: How to File a Claim and Recover What You're Owed
Arizona Revised Statutes, Title 23 (Labor), Chapter 2 (EMPLOYMENT PRACTICES AND WORKING CONDITIONS), Article 7 (Payment of Wages)
§ 23-362Minimum wage; prohibitionIn force
(L97, Ch. 51, sec. 1. Caution: 1998 Prop. 105 applies.) A. The legislature declares that the establishment of a uniform minimum wage is a matter of statewide concern. B. No political subdivision of this state may establish, mandate or otherwise require a minimum wage that exceeds the federal minimum wage prescribed in 29 United States Code section 206.
Official text (excerpt) · last checked 2026-08-04 · Read the full text in our law library · Verify at azleg.gov
United States Code Title 29
§ 206Minimum wageIn forcecited in 49 of our articles
Every employer shall pay to each of his employees who in any workweek is engaged in commerce or in the production of goods for commerce, or is employed in an enterprise engaged in commerce or in the production of goods for commerce, wages at the following rates: except as otherwise provided in this section, not less than— $5.85 an hour, beginning on the 60th day after May 25, 2007; $6.55 an hour, beginning 12 months after that 60th day; and $7.25 an hour, beginning 24 months after that 60th day; if such employee is a home worker in Puerto Rico or the Virgin Islands, not less than the minimum piece rate prescribed by regulation or order; or, if no such minimum piece rate is in effect, any piece rate adopted by such employer which shall yield, to the proportion or class of employees prescribed by regulation or order, not less than the applicable minimum hourly wage rate. Such minimum piece rates or employer piece rates shall be commensurate with, and shall be paid in lieu of, the minimum hourly wage rate applicable under the provisions of this section.
Official text (excerpt) · last checked 2026-07-28 · Read the full text in our law library · Verify at uscode.house.gov
Cited in 6,250 court opinions in our collectionLatest citing opinion in our collection: 2026
Opinions citing this section in our collection:
- Mark D. Tourscher v. Martin Horn, Secretary of the Pa. Dept. Of Corrections John McCullough Superintendent ,(d.c. Civil No. 98-Cv-00176j) (Court of Appeals for the Third Circuit 1999, 184 F.3d 236)“…wage provisions of the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 206 (a), for the work he was compelled to d…”
- Christensen v. Harris County (Supreme Court of the United States 2000, 529 U.S. 576)“…in the private sector of the economy or the public sector. 29 U. S. C. §§ 206 , 207 (1994 ed. and Supp. III). In 1985…”
- Barrentine v. Arkansas-Best Freight System, Inc. (Supreme Court of the United States 1981, 450 U.S. 728)“…a minimum wage under § 6 of the Fair Labor Standards Act, 29 U. S. C. § 206 , may not be waived through a collectiv…”
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
Also relied on in: Ohio Debt Collection Laws: Garnishment Formula, the 6-Year Consumer Debt Rule, and Repossession, South Dakota Debt Collection Laws: The 20% Garnishment Cap and 120-Day Lien, Wage Theft in the U.S.: Your Rights Regardless of Immigration Status
§ 218Relation to other lawsIn forcecited in 52 of our articles
No provision of this chapter or of any order thereunder shall excuse noncompliance with any Federal or State law or municipal ordinance establishing a minimum wage higher than the minimum wage established under this chapter or a maximum work week lower than the maximum workweek established under this chapter, and no provision of this chapter relating to the employment of child labor shall justify noncompliance with any Federal or State law or municipal ordinance establishing a higher standard than the standard established under this chapter. No provision of this chapter shall justify any employer in reducing a wage paid by him which is in excess of the applicable minimum wage under this chapter, or justify any employer in increasing hours of employment maintained by him which are shorter than the maximum hours applicable under this chapter.
Official text (excerpt) · last checked 2026-07-28 · Read the full text in our law library · Verify at uscode.house.gov
Cited in 312 court opinions in our collectionLatest citing opinion in our collection: 2026
Opinions citing this section in our collection:
- Philip Williamson Itzik Riefronda Kirlin Thomas Painter,plaintiffs-Appellants v. General Dynamics Corporation,opinion (Court of Appeals for the Ninth Circuit 2000, 208 F.3d 1144)“…wage, hour, and child labor legislation. See 29 U.S.C. § 218 (a). 1 *1151…”
- United States v. Klinghoffer Bros. Realty Corp., Irving Jacobson and Albert Klinghoffer (Court of Appeals for the Second Circuit 1961, 285 F.2d 487)“…agreement to accept reduced pay is valid, notwithstanding 29 U.S.C. § 218 . White v. Witwer Grocer Co., 8 Cir.,…”
- Pacific Merchant Shipping Ass'n v. Aubry (Court of Appeals for the Ninth Circuit 1990, 918 F.2d 1409)“…han the maximum workweek established under this chapter. 29 U.S.C. Section 218 (a). The employees and the United State…”
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
Also relied on in: Minimum Wage by State (2027): All 50 States and DC, Alabama Minimum Wage (2027): Still $7.25, No State Rate, Alaska Minimum Wage (2027): $14.00, Rising to $15.00 July 1
Sources and References
- Industrial Commission of Arizona, 2026 Minimum Wage(azica.gov).gov
- Industrial Commission of Arizona, 2027 Fair Wages and Healthy Families Act Poster(azica.gov).gov
- A.R.S. 23-363 (Minimum wage; tip credit)(azleg.gov).gov
- A.R.S. 23-364 (Enforcement; local authority)(azleg.gov).gov
- A.R.S. 23-362 (Definitions), minimum wage article (Article 8)(azleg.gov).gov
- A.R.S. 23-362 (Minimum wage; prohibition), 1997 section under Article 7(azleg.gov).gov
- City of Flagstaff, Minimum Wage(flagstaff.az.gov).gov
- Industrial Commission of Arizona, Labor Department(azica.gov).gov
- Industrial Commission of Arizona, Minimum Wage Claim Form(azica.gov).gov
- 29 U.S.C. 218 (Relation to other laws)(law.cornell.edu)
- U.S. Department of Labor, Minimum Wage FAQ(dol.gov).gov
- City of Tucson, Tucson Minimum Wage Act(www.tucsonaz.gov).gov