Alongside the increase in the minimum wage, the proposed legislation also includes provisions for annual adjustments based on the cost of living, thus linking future wage increases to the consumer price index. This approach aims to maintain the purchasing power of minimum wage earners in Arizona by ensuring that the wage grows in accordance with inflation, thereby improving economic stability for lower wage workers.
Summary
House Bill 2292 seeks to amend section 23-363 of the Arizona Revised Statutes, which pertains to the state's minimum wage. The bill proposes to gradually increase the minimum wage to $15 per hour starting on January 1, 2025. This increase is part of a planned series of raises that began in 2017, with incremental increases already set for previous years. The new law would ensure that, on specified dates, employers must pay their employees no less than the stipulated minimum wage amounts.
Contention
One notable aspect of the bill is the provision allowing employers to pay employees who receive tips or gratuities a wage that is $3.00 less than the minimum wage, provided that their total earnings meet the minimum wage requirement when tips are included. This clause has the potential to spark debate among labor advocates and business owners regarding fair compensation practices and the impact of tipping on wage structures in the service industry. Furthermore, the enactment of this bill requires a three-fourths vote from both houses of the legislature, making the legislative process for this bill more stringent compared to typical legislation.