This wage and hour Law Firm Publication by Ogletree, Deakins, Nash, Smoak & Stewart, P.C. discusses Arizona's announcement of an increase in its minimum wage from $7.90 to $8.05 per hour. The increase is based on a 1.7 percent increase in the cost of living for Arizona residents over a one-year period beginning August 2013. In addition, employers must pay tipped employees a minimum of $5.05 per hour in cash wages. Both rates become effective January 1, 2015.