Minimum Wage Increase
Effective January 1, 2025, Arizona’s minimum wage will increase by 35 cents – from $14.35 to $14.70 per hour, representing a 2.4 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. This includes Flagstaff, which will increase its minimum wage to $17.85 per hour effective January 1, 2025. Tucson will increase its minimum wage to $15 per hour effective January 1, 2025.
Arizona minimum wage will continue to increase on an annual basis, based on the Consumer Price Index.
The 2025 Arizona State Minimum Wage Poster can be found at the Arizona Industrial Commission website here.
FLSA Overtime Rule Vacated
On November 15, 2024, the United States District Court for the Eastern District of Texas vacated the Department of Labor’s attempt to increase the minimum salary needed for an employee to be exempt from the requirements under the Fair Labor Standards Act (FLSA), such as the right to overtime wages. A significant raise went into effect on July 1, 2024, and another was set to go into effect on January 1, 2025, creating more stringent requirements for employers to exempt employees from the FLSA. These raises were nullified by the District Court decision.
For the time being, employees that perform certain executive, administrative, and professional duties and are paid a salary of at least $35,568 annually are exempt from the FLSA. This is a developing situation as the Department of Labor may seek to appeal the decision.
Have questions about how this may affect you or your business?
Contact:
Gina Carrillo at GCarrillo@GBLaw.com
or
Rick Mahrle at RMahrle@GBLaw.com
