Flagstaff mandates $18.35/hr with NO tip credit for covered workers.
Effective January 1, 2026, the City of Flagstaff's minimum wage rises to $18.35 per hour. Crucially, Flagstaff's ordinance eliminates the tip credit, meaning employers cannot count tips towards meeting this minimum wage. Teambridge ensures compliance for all employees working 25+ hours annually within city limits.
Flagstaff $18.35 No Tip Credit
Routes Flagstaff workers to $18.35 with NO tip credit. Coverage: 25+ hours per year in Flagstaff city limits. Title 15 of Flagstaff City Code.
What these rules do as a Flagstaff shift is created.
Teambridge automatically applies the correct minimum wage and tip credit rules based on location and worker type. For any shift worked within Flagstaff city limits by a covered employee, the system ensures the $18.35/hour rate is met without accounting for tips.
Set Base Rate
If a shift occurs within Flagstaff city limits and the worker is covered, Teambridge sets the minimum base pay rate to $18.35/hour, regardless of their tipped status.
Disregard Tip Credit
For Flagstaff shifts, the system explicitly disables any tip credit calculation, ensuring that all tips earned are in addition to the $18.35 minimum hourly wage.
Flag for Review
If a manual override attempts to set a base wage below $18.35 for a Flagstaff shift, or apply a tip credit, the system flags the shift for immediate review by a manager.
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Flagstaff's minimum wage is $18.35/hr with no tip credit, effective January 1, 2026.
The City of Flagstaff's Minimum Wage Ordinance establishes a higher local minimum wage than the state or federal rate, with specific provisions regarding tip credits and coverage. This local ordinance significantly impacts employers operating within the city.
Flagstaff City Code, Title 15, Chapter 15-01-001 et seq.
The Flagstaff Minimum Wage Ordinance (FM furthestWO) sets the minimum wage for employees working within the geographic boundaries of the City of Flagstaff. The ordinance is adjusted annually based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Western Region. For 2026, this adjustment brings the minimum wage to $18.35 per hour.
A key distinguishing feature of the FM furthestWO is its explicit prohibition of a tip credit. Unlike federal or state law, employers in Flagstaff are not permitted to count any portion of an employee's tips towards satisfying the minimum wage obligation. Tipped employees must receive the full minimum wage of $18.35 per hour directly from their employer, with tips being additional compensation.
Who is covered by the Flagstaff Minimum Wage Ordinance?
The ordinance covers any employee who performs at least 25 hours of work within the geographic boundaries of the City of Flagstaff in a calendar year for an employer. This broad coverage means that even employees who primarily work outside Flagstaff but perform some duties within the city may be subject to the higher local minimum wage for those hours. There are limited exemptions, including certain casual babysitters, federal employees, and individuals employed by a parent or spouse.
Enforcement and Penalties
The City of Flagstaff is responsible for enforcing its minimum wage ordinance. Employers found in violation may be subject to administrative penalties, including fines and orders to pay back wages. Employees have the right to file a complaint with the city or pursue civil action to recover unpaid wages, damages, and attorney's fees. Non-compliance can result in significant financial liability and reputational damage for businesses operating in Flagstaff.
Compliance, on autopilot.
Teambridge encodes Arizona's complex wage and hour rules, including Flagstaff's specific minimum wage and tip credit provisions, directly into your scheduling and payroll processes. This ensures real-time compliance and eliminates manual guesswork.
Location-aware wage assignment.
When a manager schedules a shift in Flagstaff, Teambridge automatically applies the $18.35/hour minimum wage. The system recognizes the city boundary and disallows any tip credit application for that shift.
Guaranteed correct payouts.
During payroll, the system verifies that all Flagstaff-based hours for covered employees are compensated at or above the $18.35 rate, without deducting for tips, flagging any discrepancies before payment.
Comprehensive compliance logs.
Teambridge maintains detailed records of all wage calculations, including location-specific adjustments, providing an auditable trail to demonstrate adherence to Flagstaff's minimum wage ordinance.
People also ask.
What is the minimum wage in Flagstaff, Arizona for 2026?
Effective January 1, 2026, the minimum wage in Flagstaff, Arizona, is $18.35 per hour. This rate is adjusted annually based on the Consumer Price Index.
Does Flagstaff allow a tip credit for its minimum wage?
No, the City of Flagstaff Minimum Wage Ordinance explicitly prohibits employers from using a tip credit. Tipped employees must be paid the full Flagstaff minimum wage of $18.35 per hour directly by their employer, with tips being additional compensation.
Who is covered by the Flagstaff Minimum Wage Ordinance?
The ordinance covers any employee who performs at least 25 hours of work within the geographic boundaries of the City of Flagstaff in a calendar year for an employer. There are limited exemptions, such as certain casual babysitters and federal employees.
How often is the Flagstaff minimum wage updated?
The Flagstaff minimum wage is updated annually on January 1st. The adjustment is based on the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Western Region.
What are the penalties for not complying with Flagstaff's minimum wage law?
Employers found in violation of the Flagstaff Minimum Wage Ordinance may face administrative penalties, including fines, and could be ordered to pay back wages to affected employees. Employees can also pursue civil action to recover unpaid wages and damages.
Does the state of Arizona's minimum wage apply in Flagstaff?
While Arizona has a statewide minimum wage ($15.15/hour in 2026), Flagstaff's local ordinance mandates a higher rate. Employers in Flagstaff must comply with the higher of the two rates, which is the Flagstaff minimum wage of $18.35 per hour.