May 2022

State Updates

 

Arizona – City of Tucson voters approve new minimum wage

01/06/22

Author: ADP Admin/Tuesday, January 4, 2022/Categories: Compliance Corner , State Compliance Update, Arizona

Tucson, Arizona voters have approved a ballot measure (Proposition 206) that will increase the city’s minimum wage. Employers must pay employees at least the city's minimum wage rate for work done within Tucson as follows: 

  • $13.00 per hour beginning April 1, 2022.
  • $13.50 per hour beginning Jan. 1, 2023.
  • $14.25 per hour beginning Jan. 1, 2024.
  • $15.00 per hour beginning Jan. 1, 2025.

Section 17-82 of the proposition provides a tip credit of no more than $3.00 per hour for tipped workers. Consequently, the minimum cash wage an employer must pay a tipped employee is:

  • $10.00 per hour beginning April 1, 2022.
  • $10.50 per hour beginning January 1, 2023.
  • $11.25 per hour beginning January 1, 2024.
  • $12.00 per hour beginning January 1, 2025.

Starting in 2026, the minimum wage rate will be annually adjusted based on inflation. Proposition 206 also notes that if the federal or state minimum wage increases above the city minimum wage, that federal or state minimum wage will become the city's rate on its effective date.

The current Tucson minimum wage adheres to the Arizona state minimum wage which is $12.15 per hour and $9.15 per hour for tipped employees. The state minimum wage will increase to $12.80 per hour and $9.80 per hour for tipped employees on Jan. 1, 2022. 

Proposition 206 also provides that “large employers,” defined as an employer that employed, on average, 26 or more employees during the final quarter of the previous calendar year, must pay a minimum of three hours of wages when an employee's shift is cut short or canceled with less than 24 hours’ notice. The 26-employee threshold also includes part-time-employees, temporary employees, and employees located outside of Tucson.  

Please contact your dedicated service professional with any questions.

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Tags: 01/06/22

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