Arizona Minimum Wage 2026: $14.70/Hour Guide

Quick Answer: Arizona's minimum wage is $14.70/hour in 2026—more than double the federal minimum of $7.25. Tipped workers must receive at least $11.70/hour in cash wages, with tips bringing total to $14.70. Arizona's minimum wage increases annually based on cost of living.

Arizona has one of the higher state minimum wages in the nation.

Arizona Minimum Wage Rates

2026 Rates

Standard minimum wage: $14.70/hour

Tipped employee minimum: $11.70/hour (plus tips to reach $14.70)

Maximum tip credit: $3.00/hour

Annual Increases

Prop 206 provides:

• Automatic annual adjustments
• Based on cost of living
• Calculated by Industrial Commission
• Announced each year

History

Recent rates:

• 2024: $14.35
• 2023: $13.85
• 2022: $12.80
• Steady increases from Prop 206

Who's Covered

Most Employees

Arizona minimum wage applies to:

• Most private sector workers
• Part-time employees
• Temporary workers
• Most industries

Exemptions

May be exempt:

• Small business exemption (limited)
• Some agricultural workers
• Certain youth workers
• State/federal minimum wage exemptions

Tipped Employees

Tip Credit System

How it works:

• Employer pays $11.70/hour cash wage
• Tips counted toward minimum
• Total must reach $14.70/hour
• Employer makes up shortfall

Better Than Federal

Arizona advantage:

• $11.70 base vs. $2.13 federal
• Much better tipped worker protection
• Only $3.00 tip credit allowed

Requirements

Employer must:

• Inform employee of tip credit
• Employee must keep all tips
• Ensure total reaches minimum
• Track hours and tips

Recovering Unpaid Wages

Industrial Commission

File complaint:

• Labor Department
• Phone: 602-542-4515
• Wage claim process

Private Action

May also:

• File lawsuit
• Small claims court
• Recover damages

Penalties

Violations may result in:

• Back wages owed
• Civil penalties
• Enforcement action

Common Scenarios

Scenario 1: Paid Below Minimum

Situation: Employer paying $12/hour.

Analysis: Violation. Must pay at least $14.70. File wage complaint.

Scenario 2: Tipped Employee Shortfall

Situation: Cash wage plus tips doesn't reach $14.70.

Analysis: Employer must make up difference every pay period.

Scenario 3: Small Business Claims Exemption

Situation: Employer says minimum wage doesn't apply.

Analysis: Very limited exemptions. Most businesses must comply.

Scenario 4: No Records of Tips

Situation: Employer doesn't track tips.

Analysis: Employer must ensure minimum is met. May be violation.

Employer Obligations

Posting

Must:

• Post minimum wage notice
• Display prominently
• In workplace

Recordkeeping

Must track:

• Hours worked
• Wages paid
• Tips received (tipped employees)

Retaliation Prohibited

Cannot:

• Fire for wage complaints
• Discipline for exercising rights
• Retaliate for reporting violations

Local Minimum Wages

Cities May Set Higher

Check:

• Flagstaff may have higher minimum
• Local ordinances
• City-specific rates

Frequently Asked Questions

What is Arizona's minimum wage?

$14.70/hour in 2026.

Does it increase annually?

Yes. Prop 206 ties it to cost of living increases.

What about tipped workers?

$11.70/hour cash wage, with tips bringing total to $14.70.

Is Arizona's minimum wage higher than federal?

Yes. Arizona's $14.70 is more than double federal $7.25.

How do I report violations?

Contact the Industrial Commission at 602-542-4515.

Related Topics

• Arizona Wages and Hours
• Arizona Overtime Laws
• Arizona Unpaid Wages
• Arizona Employment Law Hub

Take Action

If not receiving minimum wage:

1. Calculate wages owed
2. Gather pay stubs
3. Document hours worked
4. Contact Industrial Commission
5. Consider consulting attorney

Legal Disclaimer

This article provides general information about Arizona minimum wage and is not legal advice. For specific advice, consult a licensed Arizona employment attorney.

For official information:

• Industrial Commission of Arizona: https://www.azica.gov | 602-542-4515
• U.S. Department of Labor: 1-866-487-9243