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_STATUTE23-363. 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.