Assigned to CE                                                                                                                                 FOR COMMITTEE

 

 

 

 

ARIZONA STATE SENATE

Fiftieth Legislature, Second Regular Session

 

FACT SHEET FOR H.C.R. 2056

 

minimum wage; younger workers

 

Purpose

 

            Subject to voter approval, statutorily sets the minimum wage at $7.65 per hour or an amount equal to the federal minimum wage, whichever is greater, and eliminates the requirement that the minimum wage increase on an annual basis.

 

Background

 

In 2006, Arizona voters passed Proposition 202, the Arizona Minimum Wage Act (Act), which increases the minimum wage every January 1 based on changes in the cost of living.  Every employer covered under the Act is required to pay each employee wages not less than this amount.  As of January 1, 2012, the minimum wage in Arizona is $7.65.  There are some minor exceptions to the requirement to pay the minimum wage, such as paying persons that are employed by a parent or a sibling, babysitters and employees of the state.

 

The current minimum wage established by the federal government is $7.25 per hour.  According to the U.S. Department of Labor, in all states, if there is a different minimum wage rate between the federal and state law, the higher standard applies.

 

Employees that regularly receive tips may be paid at a wage that is at least $3.00 less than the minimum wage per hour ($4.65 per hour, with the current minimum wage).  However, the tips they receive combined with their hourly wage must at least equal the minimum wage.

 

The fiscal impact of this legislation is unknown.

 

Provisions

 

  1. Sets the minimum wage at $7.65 per hour or an amount equal to the federal minimum wage, whichever is greater.

 

  1. Eliminates the requirement that the minimum wage increase every January 1 by the cost of living, as determined by the Consumer Price Index.

 

  1. Requires the Secretary of State to submit the proposition to the voters at the next general election.

 

  1. Becomes effective if approved by the voters and on proclamation of the Governor.

 

 

 

House Action

 

COM               2/15/12            DPA    5-3-0-0-0

3rd Read           3/6/12                          39-18-3-0-0

 

 

Prepared by Senate Research

March 11, 2012

JT/tf