As we approach the year 2024, businesses in Arizona need to start preparing for the upcoming rise in the minimum wage. This increase will have significant implications for businesses of all sizes and across various industries.

Come Jan. 1, 2024, Arizona will be raising the minimum wage for workers in the state.

As of the start of the New Year, the Industrial Commission of Arizona has declared a 50 cent raise in Arizona’s minimum wage to $14.35 per hour. This raise is linked to the 3.7% inflation rate increase from August 2022 to August 2023.

For the past eight years, Arizona’s minimum wage has been on the rise. It currently ranks in the top 10 for the highest minimum wage in the country. On the first of the year in 2023, the state’s minimum wage was increased by one dollar and five cents, with the new rate being $13.85.

The evidence suggests that a number of employers are already paying employees more than the minimum wage and that the majority of workers will not receive an increase mandated by the government come January 1st. Nonetheless, the fact remains that the implementation of a minimum wage rise in 2024 will cause more wages to go up.

The upcoming increase in Arizona’s minimum wage will have several implications for businesses. One of the most significant impacts will be the rise in labor costs. Businesses will need to allocate additional funds to meet the increased wage requirements, which can strain their budgets, especially for small and medium-sized enterprises. Moreover, the rise in minimum wage may lead to higher employee expectations and demands, especially among those who are currently earning just above the minimum wage. Businesses must be prepared to address these concerns to maintain a motivated and productive workforce.