minimum wage; definitions; increase

HB2849 - 572R - I Ver

REFERENCE TITLE:
minimum wage; definitions; increase

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 2849

Introduced by

Representative
Sandoval

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
less than

at least
the minimum wage, which shall
be not less than
:

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

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

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

4. $12

$18 per
hour
on and after January 1,
2020

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
as
described in subsection c of this section
.
In
addition, on January 1, 2028 and again on January 1, 2029, the minimum wage
shall increase by $1 per hour after the increase attributable to the cost of
living issued pursuant to this subsection and subsection C of this section.

C.
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 successor agency, with the amount of
the minimum wage increase rounded to the nearest multiple of
five
cents

$0.05
.
if the
change in the cost of living as measured in this subsection is negative, the
minimum wage will remain unchanged for that year.

C. For any employee who customarily
and regularly receives tips or gratuities from patrons or others, the employer
may pay a wage up to $3.00 per hour less than the minimum wage if the employer
can establish by its 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
the minimum wage for all hours worked.� Compliance with this provision will be
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.

D. On or after January 1, 2030, an
employer shall pay an employee the minimum wage regardless of whether the
employee customarily and regularly receives tips or gratuities from patrons or
others.

END_STATUTE

Sec. 2.
Conflicts with federal law

This statute shall not be
interpretated or applied so as to create any power or duty in conflict with
federal law.

Sec. 3.
Severability

If a
provision of this act or its application to any person or circumstance is held
invalid, the invalidity does not affect other provisions of applications of the
act that can be given effect without the invalid provision of application, and
to this end the provisions of this act are severable.

Sec. 4.
Short title

This act may be cited as the "One
Fair Wage Act".

Sec. 5.
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.