Client Alert
#NewYearNewMeNewWageLaws: Arizona’s Minimum Wage Increased Nearly 10% on January 1, 2020.
January 13, 2020
With the new year comes new resolutions, new goals, and, sadly, often new regulations and laws. This year is no different. Under Arizona’s minimum wage law, the state-mandated minimum wage increased from $11.00 to $12.00 on January 1, 2020 – a 9.1% increase. The increase at the beginning of this year reflects the last of Arizona’s predetermined wage increases. Although the minimum wage will continue to increase on January 1, 2021, and each successive year (until the statute is revised), it will increase only by the cost of living. There are several cities, towns, and other local jurisdictions within Arizona that have set their own minimum wage, and they should be evaluated for minimum wage compliance as well.
How does this affect overtime pay? Arizona does not have a state-mandated overtime law of general application. But Arizona employers are subject to the federal overtime laws, meaning Arizona employers must provide overtime pay—namely, one and one-half times the base rate—for every hour worked over 40 in a workweek. Thus, as of January 1, 2020, the minimum overtime wage for Arizona employees is $18.00 per hour, subject to local jurisdictional requirements.
What can employers do?
- Audit employee classifications. The new year presents a convenient and consistent time to audit employee classifications, particularly with the passage and implementation of new laws and legal requirements;
- Review handbook and overtime policies. Overtime pay is much more expensive than it was one or two years ago. It is that much more important that employers have overtime policies and that those policies are effective and enforced.
For more information on this topic, please contact Chris M. Mason, Daniel Peabody, or another member of the Jennings Strouss Labor and Employment practice.
ABOUT THE AUTHORS
Chris M. Mason | Read Bio
Daniel Peabody | Read Bio
About Jennings, Strouss & Salmon, P.L.C.
For over 75 years, Jennings Strouss has been dedicated to providing clients with strategic legal guidance to help them seize every opportunity. The firm is well-known for its rich heritage, commitment to community, and long-lasting relationships. We have a deep understanding of business and law. When you work with us, you’ll have a team of legal experts who are dedicated to your vision of success.
Through our offices in Phoenix, Peoria, and Tucson, Arizona, and Washington, D.C., we leverage resources both regionally and nationally to serve our expanding client base. Jennings Strouss is deeply rooted in each of our locations’ legal and business communities, and especially instrumental in helping shape the dynamic growth of Arizona and many of its institutions. The firm promotes a pragmatic, results-oriented approach, coupled with a healthy, well-managed, and friendly atmosphere of collaboration.
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