Glendale’s Prop 499 Crushed by Coalition to Protect Local Jobs

By Matthew Holloway |

Glendale’s Proposition 499, known as the “Hotel and Event Center Minimum Wage and Wage Protection Act,” faced a significant defeat on Election Day. This decision appears to reflect widespread resistance against the initiative pushed by Worker Power, a California-based interest group that aimed to promote economic justice. The measure saw robust opposition from “Save Glendale Jobs,” a coalition backed by local business leaders and endorsed by three Glendale Councilmembers: Lauren Tolmachoff, Joyce Clark, and Vice Mayor Ian Hugh.

Prop 499 proposed a new minimum wage of $20.00 per hour for hotel and event center employees, alongside service charge payments and heightened regulatory oversight by a newly established city labor department, which would have investigated wage payment violations. The mandate raised concerns about its potential impacts on the local economy, particularly during a critical phase of downtown revitalization.

Chris DeRose, president of CivicGroup LLC, expressed significant apprehension about how the proposition could hinder economic growth. During a conference call leading up to the vote, he outlined the uncertainty the proposal introduced for potential investors and stated, “Unfortunately, that’s frozen us in our tracks.” The hospitality industry, especially limited-service hotels, would bear the brunt of increased labor costs, which DeRose described as a primary expense, directly threatening ongoing development plans.

DeRose likened the proposition to a “Trojan horse,” asserting that it masked a broader regulatory agenda under the guise of a wage increase. He emphasized the unprecedented productivity cap outlined in the measure, limiting facilities to 3,500 square feet—equivalent to roughly ten hotel rooms. This limit could significantly constrain business operations in Glendale.

Councilmember Clark voiced her concerns about Glendale’s potential competitive disadvantage, noting the proposal’s implications for local businesses. “Glendale would be the only city in Arizona mandating such rates,” she remarked, warning that it could result in annual costs exceeding one million dollars, due to both enforcement and lost economic opportunities.

Tolmachoff echoed these worries, emphasizing that the city’s involvement in wage disputes would place it in an unwelcome regulatory role. She expressed skepticism about the city’s capacity to mediate between employers and employees, calling it an inappropriate responsibility for local government.

In a statement following the defeat of Prop 499, Save Glendale Jobs Chair Kim Grace Sabow expressed gratitude to voters for their decision, framing it as a victory for local employment opportunities. She recognized the coalition’s efforts, appreciating the support from business leaders, lawmakers, law enforcement, and volunteers who actively campaigned against the measure.

As reported by Maricopa County Elections, the proposition was defeated by a margin of 15.32 percentage points, equating to approximately 10,338 votes.

Matthew Holloway is a reporter for AZ Free News. Follow him on X for his latest stories or email tips to Matthew@azfreenews.com.