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Arizona's minimum wage to increase for 2021


Author: ADP Admin/Wednesday, September 30, 2020/Categories: Compliance Corner

Arizona's minimum wage will increase to $12.15 per hour on January 1, 2021. The change is a result of an adjustment for inflation.

Tipped Employees:

Employers may pay tipped employees up to $3 less than the applicable minimum wage (or $9.15 per hour in 2021), provided the employee's direct cash wage and tips equal or exceed the minimum wage. If the combination of direct cash wages and tips falls below the minimum wage, employers must make up the difference.

Compliance Recommendations:

Arizona employers should ensure that all non-exempt employees are paid at least the $12.15 per hour beginning January 1, 2021. Employers should also ensure that an up-to-date minimum wage notice is posted in the workplace. Please contact your dedicated service professional with any questions.