Measure on the ballot in the 2024 Arizona General Election in Arizona.
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Get StartedThis amendment permits employers to pay employees up to 25% less than the minimum hourly wage if the employer can establish that the employee's wage plus tips or gratuities is at least $2 more than the minimum wage per hour worked.
A “yes” vote shall have the effect of amending the Arizona Constitution to allow employers to pay employees up to 25% less than the minimum hourly wage if the employer can establish that the employee’s wage plus tips or gratuities is at least $2 more than the minimum wage for every hour worked.
A “no” vote shall have the effect of maintaining the current laws regarding minimum wage.
"Arizona tipped workers that it knows best how they should be compensated — ignoring that a large majority of restaurant workers prefer the current compensation structure and don't want it to change...protects tipped workers' pay, preserve jobs and save Arizona small businesses." - Steve Chuchri, President & CEO of Arizona Restaurant Association, in support of Proposition 138 (Learn more)
""We all know that the restaurant industry is a very small profit industry... If you have a disparity in a forced raise of costs for a business, they will either shut down, limit staff or make other alternatives.'' - AZ Representative Justin Wilmeth, in support of Proposition 138 (Learn more)
The measure was challenged in court back in June by Raise the Wage AZ, a political action committee that has been advocating for increasing the minimum wage. In its lawsuit, Raise the Wage AZ claimed that the ballot proposition sent to voters by Republican state lawmakers was deceptive and "creates a significant danger of electorate confusion and unfairness." - Raise the Wage Arizona, in opposition to Proposition 138 (Learn more)
"Well, if they're saying that the restaurants need to use the tips that the servers earn to cover their responsibility to pay the worker, then that restaurant's not a very good business," - Jim Barton, attorney at One Fair Wage AZ, in opposition to Proposition 138 (Learn more)
Permits employers to pay up to 25% less than the minimum hourly wage for employees whose compensation includes tips or gratuities from patrons, but only if the employer can establish that the employee ultimately received the minimum wage plus $2 for every hour worked.
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