Arizona Minimum Wage to Increase to $7.25 per hour Jan. 1, 2009
The minimum hourly wage in Arizona will increase from $6.90 to $7.25 effective January 1, 2009, according to the Industrial Commission of Arizona.
In accordance with Arizona's Minimum Wage Initiative, the Industrial Commission is required to adjust the state's minimum wage annually. The specific language of the initiative found in Arizona Revised Statutes Section 23-363 (B) states: “The minimum wage shall be increased on January 1, 2008 and on January 1 of successive years by the increase in the cost of living. 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. City, All Items) or its successor index as published by the Department of Labor or its successor agency, with the minimum wage increase rounded to the nearest five cents”.
Based upon the Department of Labor's Consumer Price Index (CPI) for All Urban Consumers for August 2007, the unadjusted 12 months CPI rate ending in August 2008 for “all items” category increased by 5.4%. Using this figure as the adjusting factor, the minimum wage ($6.90) will increase by 37.26 cents to $7.2726. Given the initiative requirement that all increases must be rounded to the nearest five cents, the new minimum wage (effective January 1, 2009) will be $7.25 per hour.
This change will mean that Arizona's minimum wage in 2009 will continue to exceed the federal minimum wage through the first half of 2009. The federal minimum wage increased to $6.55 per hour in July of 2008 and is scheduled to increase in July of 2009 to $7.25 per hour; at which time the Arizona and federal minimum wage rates will be the same. ( The Industrial Commission of Arizona Press Release, September 24, 2008.)
Reprinted with permission. © CCH
<p>Arizona Minimum Wage to Increase to $7.25 per hour Jan. 1, 2009  The minimum hourly wage in Arizona will increase from $6.90 to $7.25 effective January 1, 2009, according to the Industrial Commission of Arizona. In accordance with Arizona's Minimum</p>
Arizona Minimum Wage to Increase to $7.25 per hour Jan. 1, 2009