Minimum wage hike to go into effect for some across US
Workers in several states and cities will see minimum wage increases go into effect on January 1, 2025, as they continue to battle with high prices.
Arizona’s minimum wage is going up again.
Workers at the bottom of the pay scale will earn 35 cents an hour more starting Jan. 1, 2025, with a new level of $14.70 an hour compared with $14.35 in 2024.
Arizona’s minimum wage has climbed more than 80% since voters passed Proposition 206 in 2016, when the minimum stood at $8.05 an hour.
Arizona has one of the highest minimums in the nation, though the state still ranks near the bottom for overall incomes, despite a rising cost of living and a low unemployment rate.
Is Arizona’s minimum wage going up in 2025?
The Arizona statewide minimum wage increases to $14.70 an hour in 2025. The rise of 35 cents an hour reflects a cost of living boost of 2.4%. Under state law, Arizona adjusts its minimum wage once a year to reflect inflation.
The new minimum-wage rate is equivalent to $30,576 in annual pay, based on a full year of employment and a 40-hour workweek. That will rise from $29,848 in 2024.
All that stems from Proposition 206, which was approved by voters in 2016, when Arizona’s minimum wage stood at $8.05 an hour.
Who enforces Arizona’s minimum wage? Where can I make a complaint?
The Industrial Commission of Arizona oversees and enforces the wage law, along with that for sick time.
The commission’s Minimum Wage Claim Form is used for complaints related to wages that were paid below the current minimum wage. It can be submitted electronically, by fax or by U.S. mail.
How many people earn minimum wage in Arizona?
Relatively few people earn the minimum — only around 3% of Arizonans, according to one study by the Economic Policy Institute, which advocates for higher wages.
Are there exceptions to the new Arizona minimum wage?
Yes. For example, employers can pay tipped workers up to $3 an hour less, and the minimum wage doesn’t apply in several other situations such as for babysitters, people working for a parent or sibling and those employed by various small businesses, along with those working for the state itself or the federal government.
What about minimum wage in Flagstaff?
Flagstaff has a higher minimum wage than the state. The current minimum bumps up to $17.85 from $17.40 on Jan. 1, 2025.
How has the minimum wage risen in Arizona?
Arizona’s minimum has climbed more than 80% since voters passed Proposition 206 in 2016, when the minimum stood at $8.05 an hour. The measure sanctioned yearly increases reflecting inflation.
An especially big bump of $1 an hour happened in 2020, rising to $12 from $11 in 2019, and another large increase of $1.05 an hour came from 2022 to 2023.
Where does Arizona rank in terms of minimum wage?
Arizona’s minimum wage, which currently ranks 11th highest in the nation, compared with a federal minimum wage of $7.25 an hour that still applies in roughly 20 states.
Despite the upcoming New Year’s Day increase, Arizona will drop to 16th place in 2025, with several other states boosting their minimums. Washington, D.C., will top the list at $17.50 an hour in 2025, followed by Washington state ($16.66), California ($16.50) and the New York City area ($16.50), according to Paycom.
What states have the lowest minimum wage?
There is no one state with the lowest minimum wage, as many states default to the Federal Fair Labor Standards Act, which has a minimum wage of $7.25.
States that have a $7.25 minimum wage include:
- Alabama
- Georgia
- Idaho
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Mississippi
- New Hampshire
- North Carolina
- North Dakota
- Oklahoma
- Pennsylvania
- South Carolina
- Tennessee
- Texas
- Utah
- Wisconsin
- Wyoming
What states are raising the minimum wage?
These 23 states are raising the minimum wage effective Jan. 1, 2025:
- Alaska: $11.73 raising to $11.91
- Arizona: $14.35 raising to $14.70
- California: $16 raising to $16.50
- Colorado: $14.42 raising to $14.81
- Connecticut: $15.69 raising to $16.35
- Delaware: $13.25 raising to $15
- Illinois: $14 raising to $15
- Maine: $14.15 raising to $14.65
- Michigan: $10.33 raising to $10.56
- Minnesota: large and small employers raising to $11.13
- Missouri: $12.30 raising to $13.75
- Montana: $10.30 raising to $10.55
- Nebraska: $12 raising to $13.50
- New Jersey: $15.13 raising to $15.49
- New York (upstate): $15 raising to $15.50
- New York: $16 raising to $16.50
- Ohio: $10.45 raising to $10.70
- Rhode Island: $14 raising to $15
- South Dakota: $11.20 raising to $11.50
- Vermont: $13.67 raising to $14.01
- Virginia: $12 raising to $12.41
- Washington: $16.28 raising to $16.66
How has Arizona fared in terms of employment?
Both Arizona and metro Phoenix have been adding jobs and feature relatively low unemployment rates. The Arizona unemployment rate as of November stood at 3.7%, below the U.S. average of 4.2%. Arizona also generated a net 31,600 new jobs for the 12 months through November, continuing a cycle of growth.
The jobless number was better in metro Phoenix, with a 3.5% unemployment rate in November. Metro Phoenix accounts for about 72% of all employment in the state.
What about overall incomes by state?
A from payroll processor ADP showed median pay in Arizona at $52,700 as of October, well below the national median of $59,200. Arizona ranked 41st overall in median pay but ahead of several neighboring states including Utah ($52,100, 44th place), Nevada ($50,500, 47th place) and last-place New Mexico at $40,200.
Washington, D.C., led the nation with median pay of $100,400, according to the ADP report, which was based on millions of payroll transactions. Massachusetts was second at $75,800 and Alaska third at $69,600.
Might now be a good time to look for a new job?
That depends on many factors, including the occupation and industry that you’re targeting and the availability of benefits.
But one theme from the ADP report indicates that it often pays to job hop. According to the company’s report, median national pay for people who stayed put in their positions rose 4.8% over the past year, but job changers realized an average increase of 7.2%.
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