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March 2022: City of Tucson Increases Minimum Wage

Update Applicable to:
All employers in the city of Tucson, AZ

What happened?
On November 2, 2021, Tucson, Arizona voters passed Proposition 206, officially known as the “Tucson Minimum Wage Act,” (the Act) increasing the City’s minimum wage to $15.00 an hour by 2025.

What are the details?
Effective April 1, 2022, the minimum wage in Tucson will increase to $13, but future increases will take place on January 1 each year. After 2025, increases will be tied to the Consumer Price Index.

The schedule for future increases is:

  • January 1, 2023 – $13.50
  • January 1, 2024 – $14
  • January 1, 2025 – $15

Tip Credit

Employers may take a tip credit of no more than $3 for employees who regularly receive tips. The City’s definition of tipped employee “essentially matches” that found under the federal Fair Labor Standards Act.

Independent Contractor

While independent contractors are not considered employees, under the Act an individual is assumed to be an employee unless the employer can establish that:

  1. the individual is free from the control and direction of the hiring entity in connection with the performance of the work;
  2. the individual performs work that is outside the usual course of the hiring entity’s business; and
  3. the individual is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed for the hiring entity.

Method of Payment

The Act also prohibits employers from requiring employees “to receive minimum wage payments using a pay card, reloadable debit card, or similar method that requires the employee to possess a valid social security number.” Whether this means that an employer may require such methods of payment for compensation in excess of minimum wage is unclear.

Scheduling Pay

The minimum wage in Tucson also includes some predictive scheduling provisions. Under the Act, “large” employers, defined as those that averaged at least 26 employees (full-time, part-time, or temporary) during the last quarter of the previous year, must pay at least three hours of minimum wage compensation when:

  1. an employee is scheduled to work at least three hours, the employee timely reports for duty, the employee can work the entire shift, and the employer engages the employee for fewer than three hours; or
  2. an employee is scheduled to work at least three hours and the employer cancels the employee’s shift with less than 24 hours’ notice.

The law also includes anti-retaliation language and fines (and repayment) for violations.

For more information, please see the links below:

Tucson Minimum Wage Act

Fair Labor Standards

Consumer Price Index

Article 1Article 2

What do employers need to do?
Employers should review the links above and make sure they have the correct rates for their employees to abide by the City’s new law.

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