Arizona workers earning minimum wage will see a pay increase at the start of the new year.
Beginning Jan. 1, Arizona’s minimum wage will increase by 45-cents, from $14.70 an hour to $15.15.
The increase is required under the Arizona Fair Wages and Healthy Families Act, a voter-approved law passed in 2016. The act established annual minimum wage adjustments and guaranteed paid sick leave for workers.
Not all workers are covered by the law. The minimum wage does not apply to people employed by a parent or sibling, casual babysitters working in private homes or employees of small businesses that bring in less than $500,000 in annual revenue.
There is also a provision for tipped workers. Employers may pay tipped employees up to $3 less than the standard minimum wage, as long as tips bring their total hourly earnings to at least $15.15.
Arizona workers aren’t the only ones set to see higher pay. At least 22 states will raise their minimum wages in 2026, with 19 of those increases taking effect on Jan. 1 and others rolling out later in the year.
The raises are expected to affect about 8 million workers nationwide, adding roughly $5 billion in total wages in 2026, according to the Economic Policy Institute.