HB2295 • 2026

minimum wage increase

HB2295 - minimum wage increase

Housing Labor

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Cesar Aguilar, Anna Abeytia, Lorena Austin, Seth Blattman, Junelle Cavero, Janeen Connolly, Patty Contreras, Quantá Crews, Brian Garcia, Aaron Márquez, Stephanie Simacek, Betty J Villegas
Last action: 2026-01-21
Official status: House second read
Effective date: Not listed

Plain English Breakdown

The bill has passed both chambers but its final status depends on whether the required three-fourths legislative vote was achieved, which is not explicitly confirmed in the provided metadata beyond 'Passed Legislature'.

HB2295: Minimum Wage Increase

This bill sets a new minimum wage rate for Arizona starting in 2027 and requires future yearly increases based on cost-of-living changes, but it only becomes law if three-fourths of lawmakers vote to approve it.

What This Bill Does

Sets the state minimum wage at $18 per hour starting January 1, 2027.
Requires the minimum wage to increase every year after 2028 by the amount of inflation measured in August.
Uses a specific government price index from the U.S. Department of Labor to calculate yearly cost-of-living changes.
Allows employers to pay tipped workers up to $3 less than the full minimum wage if their tips bring total earnings to at least that level.

Who It Names or Affects

Employers in Arizona who must follow new hourly pay rules.
Employees working for wages, including those who receive regular tips from customers.

Terms To Know

Consumer Price Index: A government measure that tracks how much prices for goods and services change over time.
Cost of Living Increase: An adjustment to wages meant to match the rising cost of everyday items like food and rent.

Limits and Unknowns

The law only becomes effective if at least three-fourths of lawmakers in both houses vote for it.
Future wage amounts depend on inflation data that will be published by federal agencies after the bill passes.
The text does not list specific dates or rates between 2021 and 2026, only setting a new rate for 2027.

Bill History

2026-01-21 House
House second read
2026-01-20 House
House Rules: None
2026-01-20 House
House Commerce: None
2026-01-20 House
House first read

Official Summary Text

HB2295 - minimum wage increase

Current Bill Text

Read the full stored bill text

HB2295 - 572R - I Ver

REFERENCE TITLE:
minimum wage increase

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 2295

Introduced by

Representatives
Aguilar: Abeytia, Austin, Blattman, Cavero, Connolly, Contreras P, Crews,
Garcia, M�rquez, Simacek, Villegas

AN
ACT

amending section 23-363, Arizona
Revised Statutes; relating to the minimum wage.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Subject to the requirements of
article IV, part 1, section 1, Constitution of Arizona, section 23-363,
Arizona Revised Statutes, is amended to read:

START_STATUTE
23-363.

Minimum wage

A. Employers shall pay employees
no
not
less than the minimum wage, which shall be
not
less than
at least
:

1. $10
per hour
on and after
January 1, 2017.

2. $10.50
per hour
on and
after January 1, 2018.

3. $11
per hour
on and after
January 1, 2019.

4. $12
per hour
on and after
January 1, 2020.

5. $18 per hour on and after January
1, 2027.

B. The minimum wage shall be increased on January 1,

2021

2028
and on January 1 of
successive years
,
by the increase in the cost of
living.� The increase in the cost of living shall be measured by the percentage
increase as of August of the immediately preceding year over the level as of
August of the previous year of the consumer price index (all urban consumers,
U.S.
United States
city average for all
items) or its successor index as published by the
U.S.
United States
department of labor or
its

the employer's
successor agency, with the amount of the minimum
wage increase rounded to the nearest multiple of
five cents
$.05
.

C. For any employee who customarily and regularly
receives tips or gratuities from patrons or others, the employer may pay a wage

up to

of not more than
$3.00 per
hour less than the minimum wage if the employer can establish by
its

the employer's
records of charged tips or by the
employee's declaration for federal insurance contributions act (FICA) purposes
that for each week, when adding tips received to wages paid, the employee
received
not less than

�at least
the
minimum wage for all hours worked. Compliance with this
provision will be
subsection is
determined
by averaging tips received by the employee over the course of the employer's
payroll period or any other period selected by the employer that complies with
regulations adopted by the commission.
END_STATUTE

Sec. 2.
Requirements for
enactment; three-fourths vote

Pursuant to article IV, part 1,
section 1, Constitution of Arizona, section 23-363, Arizona Revised
Statutes, as amended by this act, is effective only on the affirmative vote of
at least three-fourths of the members of each house of the legislature.