Key Points:

• Arizona’s minimum wage will rise to $15.15 an hour on January 1

• The increase is due to annual adjustments for inflation, as required by state laws

• Arizona’s inflation rate through August hit 2.9%, the highest since 2021

Arizona will soon require workers to be paid at least $15.15 an hour.

New figures Thursday from the Bureau of Labor Statistics show that year-over-year inflation through August hit 2.9%.

What makes that significant is that laws approved in Arizona by voters in 2006 and again in 2016 require the state’s minimum wage to be adjusted annually to match the change in the Consumer Price Index. That means the current floor of $14.70 will go up by 45 cents on January 1, a figure by law that is rounded to the nearest nickel.

People working in Tucson and Flagstaff will see an even higher minimum.

In Tucson, the minimum already is $15 an hour. It, too, will increase by 45 cents, to $15.45.

And in Flagstaff, the $17.85 minimum will hit $18.35 in January.

Meanwhile, the federal minimum wage remains at $7.25 an hour, a figure last adjusted in 2009. And that remains the law in 20 states. 

Many Arizonans will be affected by the latest boost.

The state Office of Economic Opportunity estimates there are about 230,000 individuals in Arizona who earn no more than $15 an hour. And that doesn’t count those who were already earning more than the old minimum, who may also get a pay bump to keep them above the new minimum.

But a proponent for what has been an ongoing fight for nearly two decades says that’s hardly a victory given how much costs have gone up since that $15 aspirational goal was announced.

Alejandra Gomez, executive director of Living United for Change in Arizona, said her group is now looking at ways to raise that to $20 an hour.

“Most Arizonans are suffering from the rising cost of housing,” said Gomez, whose organization was behind the successful 2016 initiative that took the then-current figure of $8.05 an hour up to $12 by 2020, with inflationary adjustments ever since.

“They are suffering from the rising cost of utilities,” she said.

The situation is quite different at the other end of the income spectrum, Gomez said, where wages of corporate executives are multiple times those of their employees.

Gov. Katie Hobbs said she could not say what would be an appropriate figure.

“I know that Arizonans are struggling,” she told Capitol Media Services, saying it is her job to “address that struggle.”

But the governor said it is legitimate to have a public discussion of how much people need to be paid.

“I think a living wage is where somebody can afford to keep a safe roof over their heads, that has functioning utilities and water and they can put food on the table to feed their families,” she said. “That is different for everyone.”

And what about supporting an initiative for a significant increase in the minimum wage?

“I cannot speak to language and a ballot measure I have not seen,” she said.

A ballot measure, if it proceeds, would pave the way for yet another high-profile battle with the business community which fought — and failed to defeat — both the 2006 and 2016 initiatives. And leading that opposition has been the Arizona Restaurant Association.

Steve Chucri, president of that group, is preparing his arguments. And one of them comes down to a simple question: Where does it end?

First, he said, was the fight to get wages up to $15 an hour.

“So we’re there,” Chucri said. “We’ve always stated in the past that it’s always going to be ‘Fight for $15,’ then ‘Fight for $20,’ then ‘Fight for $25.’ ”

He believes the public has had enough.

Consider, he said, the decision by California voters last year to reject Proposition 32, a proposal that would have raised the minimum hourly wage in the state to $18.

Chucri also said that an effort in Arizona to add an extra dollar to the state minimum wage — above and beyond the scheduled annual inflationary increases — failed here last year. That same measure also would have scrapped existing law that allows businesses to pay their tipped workers $3 an hour less as long as their tips reach the minimum wage requirement.

In fact, though, it wasn’t because Arizona voters rejected the measure. The failure was with the ability of proponents to get sufficient signatures to put the issue on the 2024 ballot.

Conversely, a measure offered by Churci’s organization to alter how the tip credit is calculated — and in a way that would have saved money for restaurant owners — did make the ballot. And voters rejected what the restaurants wanted by a 3-1 margin.

Gomez, for her part, said history is on her side.

Prior to the 2006 ballot measure, Arizona had no minimum wage of its own. Instead, employers were required to comply only with federal law and its $5.15-an-hour floor.

That measure, which provided for an immediate $1.65-an-hour boost and future increases linked to inflation, was approved by a margin of 2-1 despite objections from the Restaurant Association and other business groups.

The 2016 measure — the one that went to voters when the minimum hit $8.05 — also was approved handily by more than 58% of voters. Here, too, the restaurants and businesses financed the opposition.

It is that law which is now in effect, with the mandated annual inflation indexing bringing current wages to $14.70 — and $15.15 beginning next year.

Chucri said if and when a new ballot measure emerges, it will be his job to convince voters that there will be no adverse effects felt by consumers and workers.

It starts, he said, with the price tag. Chucri said the industry has reached the point where the cost of labor now is greater than the cost of the food being prepared. And to deal with that, he said restaurants are buying equipment to do what used to be done by staffers.

Chucri specifically cited a move by Chipotle, which has been using Autocado, a machine that can cut, core and peel avocados before they can be mashed into guacamole, the last part of that process the chain says, is done by hand.

“These entry-level spots in the restaurant industry that some of the workers depend on, you’re going to see replaced by technology,” he said. “They’re looking to automate more and more, given the cost of labor.”

Regardless of what the future holds, whether at the ballot box or due to inflation, that still leaves the new annual inflation figure of 2.9%, the highest since Trump took office.

But all prices are not up by the same margin.

BLS reports grocery prices were up 2.7% while the cost of eating out rose 3.9%.

Electricity prices are up 6.2% over the same time last year. But the agency figures that gasoline costs actually are 6.6% lower.

Prices on new cars rose just 0.7%, versus a 6.0% increase in purchasing used wheels.

And the cost of shelter — rent and equivalent costs for homeowners — is up 3.6%.

History of Arizona and federal minimum wage
Year / State / Federal
2006 / $5.15 / $5.15
2007 / $6.75 / $5.85
2008 / $6.90 / $6.55
2009 / $7.25 / $7.25
2010 / $7.25 / $7.25
2011 / $7.35 / $7.25
2012 / $7.65 / $7.25
2013 / $7.80 / $7.25
2014 / $7.90 / $7.25
2015 / $8.05 / $7.25
2016 / $8.05 / $7.25
2017 / $10.00 / $7.25
2018 / $10.50 / $7.25
2019 / $11.00 / $7.25
2020 / $12.00 / $7.25
2021 / $12.15 / $7.25
2022 / $12.80 / $7.25
2023 / $13.85 / $7.25
2024 / $14.35 / $7.25
2025 / $14.70 / $7.25
2026 / $15.15 / $7.25

The post Arizona minimum wage set to rise to $15.15 an hour in January first appeared on Arizona Capitol Times.

A recent headline in Politico asks, “Is anyone in charge of Los Angeles?” It’s a good question. The article charts the march of labor union Unite Here Local 11 through the city’s policymaking apparatus and the bruising fights the union has picked with the city’s job creators, especially those in the hospitality industry. 

Meanwhile, some members of the City Council express occasional concern about the damage that’s been done to the city’s reputation and whether it will be able to host a Super Bowl, World Cup, and Summer Olympic Games in successive years, but not enough, apparently, to do anything to broker a lasting truce between the union and the private businesses that are now looking for more welcoming environments. 

Instead of disputes being settled at the negotiating table with the help of elected officials, the voting booth is increasingly where Big Labor and job creators square off.  

We’re fortunate that in Arizona we don’t have city governments that are as openly hostile to job creation and a competitive business environment as L.A.  

Not yet, anyway. We can’t get too comfortable.  

That’s because Unite Here Local 11’s territory not only includes Southern California, but Arizona, too. The union is growing its presence here, organizing job-killing ballot measures, targeting specific businesses, throwing up roadblocks to development, and backing candidates for city council positions. 

In Glendale, the union was the driving force behind Proposition 499 in 2024, a measure that would have burdened the city’s hospitality sector and taxpayers with costly new mandates. A year later, the union was back at it again, organizing Propositions 401 and 402, which attempted to block the development of a critical phase of what is slated to be the state’s largest resort, employing more than 2,000 Arizonans. In each case, the business community rallied to stop the union. 

The pattern has been clear: if you’re a business that dares to succeed, you’re a target. Take Scottsdale, where Unite Here operatives helped circulate the petitions aimed at freezing the new Axon corporate headquarters development, an investment promising thousands of high-paying jobs. Stopping job creators in their tracks seems to be part of the union’s playbook. Like it did in Glendale, the business community came together to stand up for Scottsdale jobs. So did a bipartisan coalition of state lawmakers and Gov. Katie Hobbs. 

The union isn’t content to restrict its influence to ballot measures and development fights. Unite Here is increasingly active in Arizona municipal politics, lining up behind city council candidates in Tucson, Phoenix and Glendale who share their agenda. Their candidates may speak in platitudes about fairness and equity, but what they really offer is a city government more hostile to employers, less friendly to entrepreneurs, and far more willing to use public policy as a cudgel against job creation. 

We’re also seeing a similar playbook from other California-based unions. The Service Employees International Union just announced a ballot initiative to cap the salaries of Arizona hospital executives, regardless of the size or complexity of the health system they lead, never mind that the proposal tramples any semblance of the right to contract. 

Supporters may say the measure is about fairness, but it would just make it harder to recruit and retain the kind of medical leadership our state needs to ensure access to lifesaving care. It’s obvious that this isn’t about strengthening health care in Arizona – it’s about importing California’s labor fights to our ballot. 

Arizona can’t afford to import Los Angeles-style dysfunction. We’ve built a reputation as a state where job creators are welcomed, where investment is encouraged, and where opportunity is still available for those willing to work hard and take risks. That reputation is one of our greatest competitive advantages, but it won’t endure if we ignore the encroachment of those who would rather grind our economy to a halt in service of their narrow political agenda. 

Arizona’s job creators are resilient, but they need policymakers at all levels of government to stand firm and defend our pro-jobs environment, and call out efforts, no matter how cleverly disguised, that would weaken it.  

Danny Seiden is president and CEO of the Arizona Chamber of Commerce & Industry.

The post Arizona can’t afford L.A.-style dysfunction first appeared on Arizona Capitol Times.

The post Arizona taking steps to combat maternal mortality, one doula at a time first appeared on Arizona Capitol Times.

The post Arizona teachers not likely to mirror W. VA colleagues – yet first appeared on Arizona Capitol Times.

The post Immigrants, documented or not, play fundamental role in Arizona’s economy first appeared on Arizona Capitol Times.

The post Arizona economy improves, but faces another year of subpar growth first appeared on Arizona Capitol Times.

The post Arizona jobless rate inches up in January first appeared on Arizona Capitol Times.

The post Arizona House backs public vote on minimum wage first appeared on Arizona Capitol Times.

The post Arizona’s minimum wage to increase 30 cents at start of next year first appeared on Arizona Capitol Times.

The post Lawmaker: Regulating unions’ picketing methods would aid Arizona business first appeared on Arizona Capitol Times.