At their meeting today the Industrial Commission took action to set Arizona’s minimum wage for 2008. Based upon that action, effective Jan. 1st, 2008, Arizona’s minimum wage will be $6.90 per hour.
In accordance with Arizona’s Minimum Wage Initiative, the Commission is required to adjust the state’s minimum wage annually. The specific language of the initiative found in A.R.S. §23-363 (B) states, “The minimum wage shall be increased on Jan. 1st, 2008 & on Jan. 1st 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 Aug. 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 Dept. of Labor or its successor agency, with the minimum wage increase rounded to the nearest 5 cents”.
Based upon the Dept. of Labor’s Consumer Price Index (CPI) for All Urban Consumers for Aug. 2007, the unadjusted 12 months CPI rate ending in Aug. 2007 for “all items” category increased by 2%. Using this figure as the adjusting factor, the minimum wage ($6.75) will increase by 13.5 cents to $6.885. Given the initiative requirement, that all increases must be rounded to the nearest 5 cents, the new minimum wage (effective Jan. 1st, 2008) will be $6.90 per hour.
This change will mean that Arizona’s minimum wage in 2008 will exceed the Federal minimum wage. The Federal minimum wage increased to $5.85 per hour in July of 2007. In July of 2008, the Federal minimum wage will increase to $6.55. In July of 2009 the federal minimum wage will rise to its statutory maximum of $7.25 per hour.
Information about the minimum wage initiative can be found on the Industrial Commission’s website at ica.state.az.us.