Minimum Wage Preemption: Phoenix vs Tempe
How do minimum wage preemption rules compare between Phoenix, AZ and Tempe, AZ?
Tempe has fewer restrictions than Phoenix.
Phoenix, AZ
Maricopa County
Phoenix cannot set its own minimum wage. Ariz. Rev. Stat. § 23-364(I) preempts local wage ordinances by tying the minimum wage to a uniform statewide rate set by Prop 206 (2016 Fair Wages and Healthy Families Act). The Arizona state minimum is $14.70/hour for 2025 and $15.15/hour for 2026, indexed annually. Tipped wage: $3/hour less than full rate.
View full Phoenix rules →Tempe, AZ
Maricopa County
Arizona voters passed Proposition 206 in 2016 setting a statewide minimum wage indexed annually to inflation. The 2024 rate is $14.35 per hour. State law preempts Maricopa County and its cities from setting a higher local wage.
View full Tempe rules →Key Facts Comparison
| Fact | Phoenix | Tempe |
|---|---|---|
| State Minimum Wage 2025 | $14.70/hr | - |
| State Minimum Wage 2026 | $15.15/hr | - |
| Tipped Wage 2025 | $11.70/hr cash + tips | - |
| Preemption Statute | Ariz. Rev. Stat. § 23-364 | - |
| Source | Prop 206 (2016) | - |
| 2024 rate | - | $14.35 per hour |
| Tipped credit | - | $3.00 below |
| Authority | - | ARS 23-363 |
| Enforcement | - | Industrial Commission AZ |
Highlighted rows indicate differences between cities.
Phoenix FAQ
Is Phoenix's minimum wage higher than Arizona's?
No. Phoenix follows the Arizona state minimum wage of $14.70/hour (2025), rising to $15.15 on 1/1/2026. Only Flagstaff (grandfathered Prop 414) has a higher local rate.
Can Phoenix adopt a $20 minimum wage?
No. Arizona's Prop 206 framework preempts local wage ordinances above the state CPI-indexed rate. Only voter-initiated city measures (like Flagstaff's Prop 414) and statewide ballot measures can raise the floor.
What's the tipped minimum wage in Phoenix?
$11.70/hour cash (2025) = state minimum minus $3.00 tip credit (Ariz. Rev. Stat. § 23-363(C)), provided tips bring the worker to $14.70 full minimum. Rises to $12.15 cash on 1/1/2026.
Tempe FAQ
Can Phoenix or Mesa set a higher minimum wage?
Not for private employers. State law preempts local wage floors above the Prop 206 rate. Cities may pay their own employees more if budgeted.
How do I report wage theft in Maricopa County?
File with the Industrial Commission of Arizona Labor Department online. You may also sue in Maricopa Superior Court for triple damages plus attorney fees.
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