Americans in 18 states, including Arizona, started the new year off with a raise. Minimum wage in Arizona went up to $10.50 per hour from a flat $10.00. The state is on track to raise the minimum wage to $12.00 an hour by 2020.
Arizona’s minimum wage was previously only $8.05 an hour before residents voted to raise it to what they believe is a more livable wage. Employees with exceptions to being paid at least minimum wage include tipped employees, some student workers, and other exempt occupations:
Under 20 Minimum Wage – Arizona employers may pay employees under the age of 20 $4.25 for training purposes for the first 90 days of their employment.
Student Minimum Wage– Certain employers who employ high school or college students who work part-time may be able to pay them 85% of Arizona’s minimum wage, $8.93 per hour, for up to 20 hours per week.
Tipped Minimum Wage– Employees who get paid with tips can be paid a lower cash minimum wage, but their tips and wages must add up to at least $10.50 an hour.
Casual Domestic Employees– People employed by their parents or siblings to do work like babysit are not entitled to be paid minimum wage.
Government Employed– Anyone employed by the federal or Arizona government is not required to be paid minimum wage.
Small Businesses– Businesses grossing under $500,000 per year may pay employees under the minimum wage as long as the business is not covered by the FLSA.
Local minimum wage means that cities can set their own higher minimum wage that employers in the city must follow. In Flagstaff, minimum wage is currently $11.00, $0.50 higher than the state minimum wage.
All employees who work at an hourly rate are entitled to be paid 1.5 times higher than their normal wage if they exceed 40 hours in a work week. Those overtime hours have a minimum wage of at least $15.75 per hour.