Author: Richard K. Mahrle
Issue: January 10, 2019
With a new year come new changes. You may want to pull out your employee handbook or policy manual and consider revising it to meet the new requirements. We can help you with that.
As of January 1, 2019, the minimum wage has increased to $11.00 per hour. Tipped employees can be paid $8 an hour, but their hourly pay including tips must meet or exceed the $11.00 minimum.
There are very few exceptions to the Arizona minimum wage. State and federal employees are not covered by the Arizona minimum wage law. If you work for a parent or sibling, the law also does not cover you. You can still pay casual babysitters who come to your home to babysit less than $11.00 an hour as they are also exempt. Businesses that have less than $500,000 in annual revenue are exempt, but only if they are not covered by the federal Fair Labor Standards Act. Since almost all businesses are covered by the FLSA, this exemption is very narrow. Note also that employers in Flagstaff must pay workers $12.00 an hour.
All employers also will need to update their labor posters to make sure that the new Arizona minimum wage is shown.
I have been told by several of our clients that the increased minimum wage will have little effect on them because they can’t find even dishwashers willing to work for minimum wage. That is undoubtedly a sign of an improving economy and upward pressure on wages.
Under Arizona’s minimum wage law, if inflation picks up, the minimum wage is likely to increase in 2020.
If you have any questions about employment matters, including the higher minimum wage or Arizona’s required paid sick time, please contact me, Rick Mahrle, at 602 256-4433.