FLAGSTAFF — On January 1, 2026, the minimum wage in the City of Flagstaff will increase to $18.35 for all workers. There will no longer be a lower minimum wage for tipped employees.
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 January of 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 11, 2025, the U.S. Bureau of Labor Statistics released the consumer price index (CPI) numbers for August of 2025. The CPI for August 2025 was 2.9% greater than for August 2024. Accordingly, the minimum wage in the City of Flagstaff will increase to $18.35 per hour on January 1, 2026.
The Act also prescribes that “On and after January 1, 2026, an employer shall pay a tipped employee not less than the minimum wage set forth in this section for all hours worked” (15-01-001-0003(E)). This means that starting in 2026, employees who regularly receive tips must receive the same base minimum wage as non-tipped employees.
For any questions or inquiries regarding the Flagstaff Minimum Wage, please contact Chris Rhode, City of Flagstaff Special Programs Manager, at LaborStandards@flagstaffaz.gov or 928-213-2078. Additional information and resources can also be found at flagstaff.az.gov/MinWage