AZ HB2545

Repeals section 23-362 of Arizona Revised Statutes and amends minimum wage provisions in sections 23-363 and 23-364 to establish a new minimum wage adjustment mechanism.

Sets base minimum wage at $6.75 per hour starting January 1, 2007, with annual adjustments based on the consumer price index rounded to the nearest five cents.

Establishes a new automatic adjustment every four years starting December 31, 2016, to set minimum wage at a rate allowing a full-time employee to earn at least 15% above the federal poverty guideline for a family of four with two children.

Allows employers to pay tipped employees up to $3.00 per hour less than minimum wage if tips bring total compensation to at least minimum wage.

Requires employers to maintain payroll records for four years, post workplace notices, and comply with enforcement provisions; violations subject to civil penalties of at least $250 for first offense and $1,000 for subsequent violations.