Bill Text: AZ HB2899 | 2025 | Fifty-seventh Legislature 1st Regular | Introduced
Bill Title: Minimum wage; increase; definitions
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced) 2025-02-13 - House read second time [HB2899 Detail]
Download: Arizona-2025-HB2899-Introduced.html
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REFERENCE TITLE: minimum wage; increase; definitions |
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State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session 2025
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HB 2899 |
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Introduced by Representatives Austin: Sandoval
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an act
Repealing section 23-362, Arizona Revised Statutes, as added by laws 1997, chapter 51, section 1; repealing section 23-362, Arizona Revised Statutes, as added by proposition 202, election of November 7, 2006; amending title 23, chapter 2, article 8, arizona revised statutes, by adding a new section 23-362; amending section 23-363, Arizona Revised Statutes; relating to the minimum wage.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Repeal
Subject to the requirements of article IV, part 1, section 1, Constitution of Arizona, section 23-362, Arizona Revised Statutes, as added by laws 1997, chapter 51, section 1 and section 23-362, Arizona Revised Statutes, as added by proposition 202, election of November 7, 2006, are repealed.
Sec. 2. Subject to the requirements of article IV, part 1, section 1, Constitution of Arizona, title 23, chapter 2, article 8, Arizona Revised Statutes, is amended by adding a new section 23-362, to read:
23-362. Definitions
In this article, unless the context otherwise requires:
1. "Commission" means the industrial commission of Arizona or any successor agency or any other agency as the governor designates to implement this article.
2. "Employ":
(a) Means to suffer or allow an individual to work anywhere in this state, regardless of the individual's age or status as a learner, apprentice, vocational trainee or other status, wherein that individual provides labor regardless of any benefit to the individual.
(b) Does not include contracting for work with an independent contractor. The burden of proof is on the party for whom the work is performed to show independent contractor status by clear and convincing evidence.
3. "Employee":
(a) Means any person who is or was employed by an employer.
(b) Does not include a person who either:
(i) Is employed by a parent or a sibling.
(ii) Performs babysitting services in the employer's home on a casual basis.
4. "Employer":
(a) Includes any corporation, proprietorship, partnership, joint venture, limited liability company, trust, association, political subdivision of this state, individual or other entity acting directly or indirectly in the interest of an employer in relation to an employee.
(b) Does not include this state, the united states or a tribal entity.
5. "Individual" means a natural person.
6. "Law enforcement officer" means the attorney general, a city attorney, a county attorney or a town attorney.
7. "Tip" means a verifiable sum presented to an employee by a patron or others as a gift or voluntary gratuity in recognition of some service performed for or on behalf of the patron or others by the employee.
8. "Tipped employee" means an employee who customarily and regularly receives more than $30 per week in tips, who has been informed by the employer in writing about the tip requirements of this article, who retains all tips received and whose total compensation is at least the minimum wage. For the purposes of this paragraph, "Total compensation" means the sum of wages and tips.
9. "Wage" means monetary compensation due to an employee by reason of employment, including an employee's commission, but not tips or gratuities.
Sec. 3. Subject to the requirements of article IV, part 1, section 1, Constitution of Arizona, section 23-363, Arizona Revised Statutes, is amended to read:
23-363. Minimum wage
A. Employers shall pay employees no less than at least the minimum wage, which shall be not less than:
1. $10 on and after January 1, 2017.
2. $10.50 on and after January 1, 2018.
3. $11 on and after January 1, 2019.
4. $12 $18 per hour on and after January 1, 2020.
B. The minimum wage shall be increased on January 1, 2021 and on January 1 of successive years, by the increase in the cost of living as described in subsection c of this section. In addition, on January 1, 2026 and again on January 1, 2027, the minimum wage shall increase by $1 per hour after the increase attributable to the cost of living issued pursuant to this subsection and subsection C of this section.
C. The increase in the cost of living shall be measured by the percentage increase as of August of the immediately preceding year over the level as of August of the previous year of the consumer price index (all urban consumers, U.S. united states city average for all items) or its successor index as published by the U.S. united states department of labor or its successor agency, with the amount of the minimum wage increase rounded to the nearest multiple of five cents $0.05. if the change in the cost of living as measured in this subsection is negative, the minimum wage will remain unchanged for that year.
C. D. For any employee who customarily and regularly receives tips or gratuities from patrons or others, the employer may pay a wage up to $3.00 per hour less than the minimum wage as prescribed in this subsection if the employer can establish by its records of charged tips or by the employee's declaration for federal insurance contributions act (FICA) purposes that for each week, when adding tips received to wages paid, the employee received not less than at least the minimum wage for all hours worked. Compliance with this provision will be subsection is determined by averaging tips received by the employee over the course of the employer's payroll period or any other period selected by the employer that complies with regulations adopted by the commission. Not including any tips received by the employee, employers shall pay tipped employees at least:
1. $3 per hour less than the minimum wage described in subsection B of this section on or before December 31, 2026.
2. $2 per hour less than the minimum wage described in subsection B of this section, on or after January 1, 2027 through December 31, 2027.
3. $1 per hour less than the minimum wage described in subsection B of this section on or after January 1, 2028 through December 31, 2028.
4. The minimum wage described in subsection B of this section on or after January 1, 2029.
Sec. 4. Conflicts with federal law
This statute shall not be interpretated or applied so as to create any power or duty in conflict with federal law.
Sec. 5. Savings clause
This act applies prospectively only. Accordingly, it does not affect rights and duties that matured before the effective date of this act, contracts entered into before the effective date of this act or the interest rate on judgments that are based on a written agreement entered into before the effective date of this act.
Sec. 6. Severability
If a provision of this act or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions of applications of the act that can be given effect without the invalid provision of application, and to this end the provisions of this act are severable.
Sec. 7. Short title
This act may be cited as the "One Fair Wage Act".
Sec. 8. Requirements for enactment; three-fourths vote
Pursuant to article IV, part 1, section 1, Constitution of Arizona, section 23-362, Arizona Revised Statutes, as added by Laws 1997, chapter 51, section 1 and section 23-362, Arizona Revised Statutes, as added by Proposition 202, election of November 7, 2006 and repealed by this act, new section 23-362, Arizona Revised Statutes, as added by this act and section 23-363, Arizona Revised Statutes, as amended by this act, are effective only on the affirmative vote of at least three-fourths of the members of each house of the legislature.
