Legal Alert: Arizona Minimum Wage Increase

Effective January 1, 2026, Arizona’s minimum wage will increase by 45 cents – from $14.70 to $15.15 per hour, representing a 3 percent raise. This jump reflects the continued wage increase initiative started by The Fair Wages and Healthy Families Act, which voters approved in 2016.

In addition to the statewide minimum wage requirements, employers should be aware of local minimum wage requirements. Several Arizona municipalities have independent minimum wages, including Flagstaff, which will increase its minimum wage to $18.35 per hour effective January 1, 2026, and Tucson, which will increase its minimum wage to $15.45 per hour effective January 1, 2026.

Arizona minimum wage will continue to increase on an annual basis, based on the Consumer Price Index. The 2026 Arizona State Minimum Wage Poster, which all employers need to have, can be found at the Arizona Industrial Commission website here.

If you would like to discuss how this change or any other employment law issue may affect your business, please contact Rick Mahrle or Gina Carrillo.