City of Flagstaff Announces Minimum Wage for 2023

On November 8, 2016 the voters of Flagstaff wrote and passed The Minimum Wage Act (“the Act”) as a citizen’s initiative (Proposition 414). The Act, which is codified in Title 15 of the Flagstaff City Code, prescribes that beginning in 2023, the Flagstaff minimum wage shall be increased annually by the increase in the cost of living. Pursuant to the Act, “[t]he increase in the cost of living shall be measured by the percentage increase as of August of the immediately preceding year over the level as of August of the previous year of the consumer price index (all urban consumers, U.S. city average for all items)” (15-01-001-0003(B)). The increase shall be rounded to the nearest $0.05.

On September 13, 2022, the U.S. Bureau of Labor Statistics released the consumer price index (CPI) numbers for August of 2022. The CPI for August 2022 (296.171) was 8.3% greater than for August 2021 (273.567). Accordingly, as of January 1, 2023, the minimum wage in the City of Flagstaff will increase from $15.50 per hour to $16.80 per hour.

The Flagstaff minimum wage applies to all employees who work or are expected to work at least 25 hours within the city limits in a single calendar year. For provisions of the Act pertaining to tipped employees, please refer to section 15-01-001-0003(E) of the Flagstaff City Code.

The Act is enforced by the Flagstaff Office of Labor Standards. Previously enacted provisions of Title 15 will remain in effect. These include requirements that employers maintain payroll records for a period of 4 years, allow the Office of Labor Standards to review these records to monitor compliance, and do not retaliate in any way against employees for asserting their rights under this law.

For any questions or inquiries regarding the Flagstaff Minimum Wage, please Contact Chris W. Rhode, Management Analyst, at LaborStandards@flagstaffaz.gov or 928-213-2078. Additional information and resources can also be found at flagstaff.az.gov/MinWage