Arizona’s minimum wage is going up on Jan. 1 - Phoenix Business Journal

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The latest hike is directly tied to the 8.3% increase in inflation from August 2021 to August 2022. phoenix

Yet while inflation spurred the latest increase, consumer price pressures and other economic issues already forced Arizona employers to pay well above the minimum wage in 2022 and most likely going forward in 2023.

Of the 22 industries examined in the 2021 wage and occupation data, all of them in the Phoenix area paid over $13 an hour, higher than the minimum wage at the time and all but five – health care support, sales, personal care and services, building and grounds cleaning and maintenance, and food preparation and service – paid more than the upcoming $13.85 an hour.

In industries where the minimum wage used to be normal compensation – health care, restaurants, retail, hotels, etc. – employers have had to advertise paying a certain amount over the minimum wage to attract new workers. Now those entry level numbers will have to increase.

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