By admin 
FLAGSTAFF, AZ (AZFamily) — Arizona’s minimum wage is expected to rise to $15.65 an hour at the beginning of 2027, based on data from the U.S. Bureau of Labor Statistics.
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The City of Flagstaff announced over the weekend that its minimum wage will rise from $18.35 to $18.95 an hour.
Business owners react
Armondo Garcia owns Baja Mar in downtown Flagstaff. During a lunch rush, Garcia took orders, ran food and managed the restaurant because he said he cannot afford to pay workers during slower weekdays.
“I can’t afford payroll right now,” Garcia said.
Garcia said the wage increase also affects his employees.
“And it’s sad because they want more hours, but I really can’t do that,” Garcia said.
Garcia said the wage increase has a ripple effect on tipped workers.
“People know that minimum wage is close to $20 right now. So they don’t get tipped well,” Garcia said.
City’s response
Sarah Langley, the city’s public affairs director, said the increase is tied to the Consumer Price Index (CPI).
“The federal government just let us know that, or they just published data to share that CPI has increased by 3.4% over the past year,” she said. “So we take that 3.4%, and we times that by the last year’s minimum wage to get the current minimum wage.”
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Langley said the city cannot change the minimum wage because it was chosen by Flagstaff voters.
“The city is in charge of administering and enforcing the minimum wage,” she said. “But because of the Federal Voter Protection Act, the city cannot change the minimum wage because it was established by voters.”
Garcia said he and other downtown business owners have talked with city leaders. He said they want to see more downtown events to draw in more customers.
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