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.
Under ARS Section 23-363 (Arizona Fair Wages and Healthy Families Act), the minimum wage adjusts each January based on the Consumer Price Index. The 2024 rate is $14.35; tipped workers may be paid up to $3.00 below provided tips bring them to the full minimum. Cities may set higher wages for their own employees but cannot impose higher wages on private employers (HB 2579, 2016 reaffirms preemption). Flagstaff, governed by its own voter-passed local minimum, is the only Arizona city with a higher rate. Maricopa County government pays its employees at or above the state floor; private Maricopa employers comply with the state rate. The Industrial Commission of Arizona enforces.
Underpayment claims go to the Industrial Commission Labor Department or superior court. Employers face triple damages, civil penalties up to $250 per day per violation, plus attorney fees. Retaliation is independently actionable under ARS 23-364.
See how Tempe's minimum wage preemption rules stack up against other locations.
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