FLAGSTAFF, Ariz – Following this morning’s press release regarding the Flagstaff Minimum Wage effective Jan. 1, 2027, City staff identified the need to revise the calculation. After revising the calculation, the minimum wage will increase to $18.95 per hour Jan. 1, 2027, not $19.00 per hour as previously reported.
The Ordinance requires annual increases be rounded to the nearest multiple of five cents ($0.05). The revised calculation applies the cost-of-living increase (CPI adjustment) to the rounded minimum wage from the prior year. Past adjustments applied the increase to the unrounded minimum wage from the prior year. This is the first year the two methodologies resulted in different increases, and after reviewing the Ordinance, City staff determined the correct application is to apply the CPI adjustment to the rounded minimum wage from the prior year.
On November 8, 2016 the voters of Flagstaff wrote and passed The Minimum Wage Act as a citizen’s initiative (Proposition 414). Accordingly, the City’s minimum wage is adjusted annually by the change in the cost of living.
On Sept. 11, 2026, the U.S. Bureau of Labor Statistics released the consumer price index (CPI) numbers for August of 2026. The CPI for August 2026 was 3.40% greater than for August 2025. Accordingly, the minimum wage in the City of Flagstaff will increase to $18.95 per hour on January 1, 2027.
The Act also stipulates that employees who regularly receive tips must receive the same minimum wage as non-tipped employees.
For any questions or inquiries regarding the Flagstaff Minimum Wage, please contact Sarah Langley, City of Flagstaff Public Affairs Director, at sarah.langley@flagstaffaz.gov. Additional information and resources can also be found at flagstaff.az.gov/MinWage.