Arizona Raises The Minimum Wage
s business owners, you are
all aware of the recent OVERTIME
vote to raise the state The increase in wages will
minimum wage to $6.75 per hour, obviously effect overtime pay,
per Arizona voter approval of whereas one who earns $6.75 per
Proposition 202. In addition, hour, will earn $10.13 per hour
the new law mandates annual wage for hours worked over 40 in a
adjustments according to workweek This change will effect
increases in the cost of living the ways in which employers
(CPI). As an Arizona Human manage overtime of non-exempt
Resources Consultant, I am staff. Perhaps this encourages
working with clients to inform an emphasis on work/life balance
and educate on the new and reminds us the 40-hour
regulations and impact on workweek as originally defined by
businesses in the community. the Fair Labor Standards Act of
1938.
Most businesses will be required
to comply with the new state TIPPED EMPLOYEES
statue, however there are limited Currently, tipped employees are
exceptions, including any person paid a minimum of $2.13 per hour
who is employed by a parent or plus tips, which must equate to
sibling, “casual” babysitters, at least minimum wage in a
the Arizona state government, the workweek. When reported wages
federal government, employees who are less than minimum wage, the
regularly receive tips (may be employer is responsible for
paid a minimum of 3.75/hour), and adjusting the employee’s pay
businesses that have less than accordingly. Under the new
$500,000.00 in gross annual statute, employers may pay $3.00
revenue and that are exempt from per hour less than the state
the state minimum wage law. minimum wage ($3.75 per hour).
Arizona Restaurant Association significant cost saving measure.
was a big advocate in fighting
against the raise in minimum wage IMPACT ON WORKFORCE
hike. As low wage ($5.15 to $6.75 per
hour) earners will be impacted,
RECORD KEEPING thusly so will workers receiving
Proposition 202 requires new wages in excess of $6.75 per
measures in record keeping hour. Known as the “ripple
requirements. The Equal Pay Act effect,” Theoretically, all
and the Fair Labor Standards Act workers should experience a
both require retention of payroll positive impact with regard their
record information for three pay. Negative impacts may also
years; the new provisions arise from loss of jobs, higher
necessitate retaining records for income taxes and increased cost
four years. of products.
IMPACT ON BUSINESSES Since the passage of Proposition
Offsetting costs may be possible 202, there has been much to be
by passing it along to consumer. said on both the positive and
Some business may need to assess negative impact of raising the
their current workforce and state minimum wage.
reductions may be in order. Nevertheless, Arizona business
Businesses may consider owners and their employees are
automating processes that may likely to face significant
result in cost savings. changes in the coming months.
Outsourcing will likely become a
About the Author:
By a freelance writer for http://www.nationalpeo.com/ - National PEO, Arizona HR Consultants: http://www.nationalpeo.com/ provides HR services to hundreds of companies including PEO services. Please link to this site when using this article.
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