HB2295 • 2026

minimum wage increase

HB2295 - minimum wage increase

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 official source does not provide information on specific requirements for enactment beyond needing a three-fourths majority vote.

Minimum Wage Increase in Arizona

HB2295 increases the minimum wage in Arizona to $18 per hour starting January 1, 2027 and adjusts it annually based on cost-of-living changes.

What This Bill Does

Increases the hourly minimum wage from $12 to $18 as of January 1, 2027.
Adjusts the minimum wage each year starting in 2028 by the percentage increase in the consumer price index (CPI) for urban consumers in the U.S.
Limits employers to pay tipped employees up to $3 less than the minimum wage if they can show that tips plus wages meet or exceed the minimum wage.

Who It Names or Affects

Employees who earn the current minimum wage and will benefit from a higher hourly rate starting in 2027.
Employers who must pay their employees at least $18 per hour beginning January 1, 2027.

Terms To Know

Consumer Price Index (CPI): A measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Limits and Unknowns

This bill requires at least three-fourths vote from each house of the Arizona Legislature to be enacted.
It is unclear when exactly the bill will take effect after passing through legislative processes.

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.