Flagstaff, AZ – City officials have announced that the minimum wage in Flagstaff will increase to $18.35 per hour, effective January 1, 2026, according to a statement released on September 11, 2025.
Key Changes
One major change is that tipped employees will no longer have a lower minimum wage, ending the previous practice of paying a reduced rate for tips. For 2025, tipped workers earn $16.85 per hour, which is $1 less than the standard minimum wage.
History of Minimum Wage Increases
The City of Flagstaff adjusts its minimum wage each year based on cost-of-living increases, a process approved by voters in Proposition 414 during the November 2016 election. As per Fox10Phoenix, the past increases include:
- $10.50 per hour between July–December 2017
- $15 per hour by 2021
- $17.85 per hour for 2025
Impact on Businesses and Workers
Officials say the wage increase is aimed at helping residents keep up with rising living costs. While workers will see a boost in earnings, some local businesses may face higher labor costs, which could influence staffing and pricing strategies. City leaders encourage businesses to plan ahead for the change to ensure a smooth transition.
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