Under Arizona’s Fair Wages and Healthy Families Act, the state’s minimum wage will increase to $14.35 an hour effective January 1, 2024.

The increase will not apply under the following circumstances:

• If an individual is employed by a parent/sibling, the State of Arizona or the federal government.
• If a business grosses less than $500,000 in annual revenue and is exempt from paying minimum wages under Title 29 United States Code Section 206.

To remain compliant, employers should update existing handbook policies and mandatory wage and hour posters to reflect the increase. Additional minimum wage information for employers can be found on the Industrial Commission of Arizona’s website.