How can Arizona’s minimum wage be higher than the federal minimum wage?
Under federal law, a state may require a minimum wage that exceeds the federal wage as the federal law establishes only the minimum wage that must be paid. Which minimum wage law applies? An employer will likely be subject to both the federal and state minimum wage laws. When there are different requirements between the laws, the employer must follow the requirement that is the most beneficial to the employee. Since Arizona’s minimum wage law requires a higher minimum wage rate than does the federal law, an Arizona employer who is subject to both laws must pay the Arizona minimum wage rate.