Flagstaff Minimum Wage in 2026: Everything You Need to Know

Last Updated: March 9, 2026

Since the introduction of Proposition 414 on January 1, 2017, the City of Flagstaff has adopted its own minimum wage ordinance separate from the Arizona state minimum wage law.

In Accordance with Flagstaff’s Minimum Wage Law established as Title 15 of the Flagstaff City Code, the minimum wage in Flagstaff, Arizona, increased to $18.35 per hour in 2026. This rate took effect on January 1, 2026, and will remain in place through the remainder of the year.

Minimum wage rates are adjusted annually on January 1 to reflect changes in inflation. At this time, there are no updates announced for the minimum wage rate in 2027.

Minimum Wage in Flagstaff, Arizona​

As of January 1, 2026, the current minimum wage rate in Flagstaff is $18.35 per hour.

As per Title 15 and the updates on January 1, 2026, tipped employees in Flagstaff, Arizona, are also entitled to receive the full minimum wage rate regardless of the amount of tips earned. Previously, employers could take a maximum tip credit of $1.00 per hour, provided employees’ total earnings met the city's minimum wage requirement.

Below is a historical chart showing changes to Flagstaff's minimum wage throughout recent  years:

Flagstaff Minimum Wage - Historical Rates Table

Who Is Covered Under the Flagstaff Minimum Wage Law?

Employees entitled to the Flagstaff minimum wage include those who:

• Work or are expected to work at least 25 hours or more in any given calendar year; and
  

• Perform work within the Flagstaff city limits
  

All employers, regardless of size, must pay their employees at least the current Flagstaff minimum wage for all hours worked, regardless of the employee’s compensation method (hourly, salary, piece rate, etc.). Both full-time and part-time employees are covered equally.

Additionally, the ordinance applies to employees working under collective bargaining agreements (working as part of a union) unless a specific exemption is negotiated within the agreement.

Flagstaff Minimum Wage Exceptions

While most employers operating within Flagstaff must follow the local minimum wage ordinance, certain exceptions apply.

The following workers working within the Flagstaff city limits do not qualify for the local minimum wage rate:

• Federal government employees (governed by the federal minimum wage instead)
  

• Arizona state government employees (governed by the Arizona statewide minimum wage instead)
  

How the Flagstaff Minimum Wage is Determined

As with many jurisdictions for state and local minimum wage laws, Flagstaff adjusts its minimum wage annually based on the Consumer Price Index (CPI). The CPI measures the average change over time in prices paid by urban consumers for a market basket of consumer goods and services (food, fuel, housing, clothing, etc.).

Previously, Flagstaff calculated the minimum wage using the greater of:

• The determined CPI-based adjustment; or

• $2.00 above the Arizona state minimum wage
  

Beginning January 1, 2023, and for each year thereafter, the minimum wage is adjusted based only on CPI increases.

Compliance Requirements for Flagstaff Employers

Flagstaff employers must stay up-to-date with the latest requirements, especially when annual adjustments take effect.

Here’s a quick checklist employers can use to meet the specific local wage requirements:

Track Employee Work Locations

Employers should track where an employee performs work to determine whether the Flagstaff minimum wage applies. Because any employee performing work within the city limits may qualify for the local minimum wage rate, it’s crucial to track where work is done to ensure accurate pay based on the local legislation. 

Display Updated Posters

Employers are required by law to display the most current Flagstaff minimum wage poster in a conspicuous location within the workplace where it is accessible to all members of the organization. Labor law poster services eliminate the struggle while ensuring your posters stay up to date each year.

Maintain Payroll Records

Accurately managing employee records effectively, particularly payroll records, is critical, especially in the event of an audit. Flagstaff law requires employers to keep payroll records for each employee for at least 4 years.

Managing Local Arizona Wage Laws

Understanding local labor laws is essential for employers, as local wage ordinances can override state minimum wage requirements. Accidentally compensating an employee the Arizona state minimum wage instead of the local rate may seem like an honest mistake, but violations can result in your business paying out up to $1,000 per violation.

Using the right HR compliance solutions can help your business stay aligned with federal, state, and local requirements. Schedule a compliance check-up if your business needs help staying compliant with Flagstaff, Arizona, or other labor laws.