AZ HB2295

Raises Arizona's minimum wage to $18 per hour effective January 1, 2027, up from the current $12 per hour rate established in 2020.

Annual cost-of-living adjustments will begin January 1, 2028, based on the Consumer Price Index, with increases rounded to the nearest $0.05.

Maintains the tip credit provision allowing 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 a three-fourths supermajority vote in both chambers of the legislature to take effect, as mandated by the Arizona Constitution for amendments to voter-approved initiatives.