Tipped Workers to Make More in Arizona

As of January 1st, 2024 the minimum wage in Arizona has been increased to $14.35 an hour. This is nearly double the federal minimum wage of $7.25 an hour, and a huge step for labor in the state of Arizona.

Housing and food have gotten more and more expensive in the state, and legislators are trying to lighten the load. By lowering the minimum wage, they're actually trying to help workers more.

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Minimum Wage Changes

In a roundabout way, Arizona's plan actually involves raising the minimum wage. Due to tipping practices in the United States, employers are legally allowed to pay their workers $3 less than the minimum wage, as long as their tips make up the gap.

One national organization known as "One Fair Wage" is pushing for a radical change in Arizona that would put tipped employees on a level playing field.

Read More: Stop Sending Checks Through the Mail in Arizona

The Plan

In order to end dependence on tips by the end of 2027, One Fair Wage wants to slightly increase the state minimum wage every year until we reach $18. To balance this out, restaurants will be allowed to pay 25% less than the minimum wage, bringing tipped employees minimum to $13.50 an hour.

In order to garner support for the bill and start bringing benefits now, all restaurants will be raising their minimum wage by $2, which brings the average tipped wage to $13.50 an hour, and should balance out to $20 per hour with tips included.

The bill goes to a vote on Tuesday evening, and will hopefully begin to help tipped workers earn a fair share.

[Market Realist]