On October 15, 2013, the Industrial Commission of Arizona announced Arizona’s minimum wage will increase by 10 cents to $7.90 per hour effective January 1, 2014. Every employer covered under the Act will be required to pay each employee wages not less than this amount.
Arizona’s minimum wage is adjusted for inflation each January 1 based upon the change in the Consumer Price Index for All Urban Consumers, U.S. City Average for All Items from August of the immediately preceding year over the level in August of the current year. The change in the CPI-U from August 2012 to August 2013 reflects a 1.5 percent increase in the cost of living. Applying the 1.5 percent increase to the current minimum wage of $7.80 per hour results in an increase of 11.7 cents to $7.917. The law requires the minimum wage to be rounded to the nearest $.05, making $7.90 per hour the minimum wage rate for 2014.
The Industrial Commission of Arizona, Labor Department, public notice of the minimum wage increase is located here.