Arizona Minimum Wage Increases to $8.05 Per Hour January 1, 2015

At a public meeting on October 16, 2014, the Industrial Commission of Arizona calculated that Arizona’s minimum wage of $7.90 per hour would be increased to $8.05 for calendar year 2015. Arizona’s minimum wage of $8.05 per hour is already higher than the federal minimum wage of $7.25 per hour. Employers must pay the higher of the two rates.

In 2006, Arizona voters enacted the Raise the Minimum Wage for Working Arizonans Act, which provided for an annual increase to the state’s minimum wage based on the increase in the cost of living. The minimum wage increase is to be rounded to the nearest multiple of five cents.

The cost of living is based on the federal Consumer Price Index for All Urban Consumers, which is a national index covering the cost of goods and services. The CPI-U increased 1.7 percent comparing August 2013 to August 2014. Applying the 1.7 percent increase in the CPI-U to the 2014 Arizona minimum wage of $7.90 results in an increase of 13.4 cents to $8.03, which when rounded to the nearest multiple of five cents results in $8.05.

Click here to view the minimum wage resolution.