The City of Flagstaff will raise its minimum wage to $17.40 cents at the beginning of next year.
The new rate for tipped workers will be $15.90.
The boost is based on annual cost of living increases related to the national consumer price index in August, which was 3.7% higher than the same month in the previous year.
Flagstaff voters in 2016 passed an initiative to raise the city’s minimum wage each year beginning in 2023 according to inflation.
The raise applies to all people in Flagstaff who work at least 25 hours in a single year and is enforced by the city’s Office of Labor Standards.
Flagstaff’s current minimum wage is $16.80 per hour with tipped workers making two dollars less.