Arizona Raises Minimum Wage for Employers to Follow
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Arizona Raises Minimum Wage for Payroll

arizona payroll minimum wageArizona employers paying workers the minimum wage will pay more per hour when the minimum wage increases to $7.65 on January 1, 2012. However, small businesses that are not covered by the federal Fair Labor Standards Act and gross less than $500,000 in annual revenue are exempt.

Employers can pay employees who earn tips or gratuities $3.00 less than the minimum wage, as long as the tips and wages earned add up to not less than the minimum wage. The employer must keep accurate payroll records of the wages and tips earned.

The 30-cent increase, from $7.35 to $7.65, represents a 3.8% increase for Arizona minimum wage earners. Arizona is one of 10 states that tie their minimum wage to increases in the cost-of-living index.

You can download the required 2012 Arizona minimum wage poster from the Industrial Commission of Arizona.  The poster includes more details about Arizona payroll rules.

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