The City of Flagstaff’s Minimum Wage Law, passed in 2017, set a schedule of annual increases. Effective January 1, 2021, the minimum wage jumps to $15.00 an hour for all covered employees, those who worked or are expected to work 25 hours or more in any given calendar year within the city limits of Flagstaff, Arizona. The law also provides annual incremental increases for tipped employees, those individuals in positions that regularly or customarily receive $30 or more in tips per month. Tipped employees are often subject to a “tip credit” reducing their hourly minimum wage by $3. As such, as of the New Year, tipped employees working in Flagstaff must be paid no less than $12.00 an hour. In 2022, the Flagstaff minimum wage again rises to $15.50 an hour (or $2 above the State of Arizona minimum wage, whichever is higher), and the tipped employee credit is incrementally reduced by .50 a year until it is eliminated entirely. Employers with workers within the Flagstaff city limits should update payroll practices now to be ready for the changes. Remember, even employees who are exempt under the FLSA must be paid at least the state, or in this case, the City of Flagstaff’s minimum wage for all hours worked. Employees cannot agree to waive or otherwise “opt-out” of state or local wage laws, including for “training” or in many cases, what is referred to as unproductive “waiting time.”
If you are an employee who has not been paid at least minimum wage for all hours worked, we can help you obtain all that you are due. Don’t delay. There are timeframes to seek unpaid or underpaid wages.