HB 2295 would raise Arizona’s statutory minimum wage from $12 per hour to $18 per hour beginning January 1, 2027. It would also keep the state’s annual inflation adjustment in place, but shift the start of that cost-of-living increase from January 1, 2021 to January 1, 2028 and continue it each year thereafter based on the Consumer Price Index for urban consumers, rounded to the nearest five cents.
The bill also preserves Arizona’s tip-credit framework for tipped workers. Employers could continue to pay up to $3.00 per hour less than the minimum wage to employees who customarily receive tips, so long as records or employee declarations show that tips plus wages bring the worker up to at least the minimum wage for all hours worked. The measure amends A.R.S. § 23-363, the state minimum wage statute, and would change the wage floor applicable to most covered employees statewide.
HB 2295 includes a special enactment clause requiring approval by at least three-fourths of the members of each house of the Legislature. That means the bill would not take effect unless it clears a supermajority threshold, reflecting that it changes a voter-established wage framework and would likely have broad fiscal and policy implications for employers, workers, and wage enforcement.
Because there are no committee transcripts or recorded votes provided, there is no direct evidence of debate or formal support/opposition in the materials. Based on the bill’s subject matter, the likely general sentiment is that it is a pro-worker wage increase proposal, while also potentially drawing concern from employers and business groups about higher labor costs, effects on small businesses, and the pace of the increase. The main point of contention is likely the size and timing of the jump to $18 per hour and the continued annual indexing, especially given the supermajority requirement.
Impact
HB 2295 would amend Arizona Revised Statutes section 23-363 to set a higher statewide minimum wage and preserve annual inflation indexing. It would directly affect employers subject to Arizona’s minimum wage law, including those paying tipped employees under the state’s tip-credit rules, and would increase wage obligations beginning in 2027 if enacted. The bill also changes the timing of the cost-of-living adjustment, pushing the annual indexed increase to begin in 2028 under the amended language.
Sentiment
No committee discussion or vote record is available, so there is no documented legislative sentiment in the provided materials. The bill’s title and text indicate a clear pro-wage-increase posture, suggesting support from lawmakers favoring higher pay for low-wage workers. At the same time, the size of the increase and the supermajority enactment requirement suggest the proposal may face resistance from members concerned about employer costs, inflationary effects, or impacts on small businesses and the service sector.
Contention
The likely central controversy is the magnitude of the increase—from $12 to $18 per hour—and whether Arizona should continue automatic annual inflation adjustments after such a large jump. Another likely point of contention is the effect on employers, especially small businesses and industries with many tipped workers, since the bill preserves but does not eliminate the tip-credit structure. The requirement for a three-fourths vote in each chamber signals that the measure touches a sensitive area of state wage policy and may be difficult to enact without broad bipartisan support.