Wednesday, December 10, 2008

Arizona Minimum Wage Will Increase to $7.25 per hour Jan. 1, 2009

According to the Industrial Commission of Arizona, the minimum wage in Arizona will increase to $7.25 per hour from $6.90 per hour. The new wage will take effect in January 1, 2009.

In order to cooperate with Arizona’s Minimum Wage Initiative, the Industrial Commission is supposed to adjust the state’s minimum wage every year. According to Arizona Revised Statutes Section 23-363(B), the minimum wage shall be increased on January 1, 2008 and 2009 as a result of the increasing of the cost of living.

The Consumer Price Index is a good mirror to reflect 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 on the increase of Department of labor’s Consumer Price Index for All Urban Consumers from 2007 to 2008, if the initiative requirement that all increase must be rounded to the nearest five cents, the new minimum wage if Arizona will be $7.25 per hour in 2009. It is expected that the minimum wage in 2009 of Arizona will continue to exceed the federal minimum wage through the first half of 2009.

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