Az Supreme Court Dismisses Claims of Deception in Tipped Workers’ Pay Ballot Measure

The Arizona Supreme Court has upheld the inclusion of Proposition 138, known as the “Tipped Workers Protection Act,” on the upcoming November ballot.

This decision follows a lawsuit filed in June by Raise the Wage AZ, a political action committee advocating for an increase in the minimum wage. The committee argued that the ballot measure devised by Republican state lawmakers was misleading, claiming it poses a “significant danger of electorate confusion and unfairness.”

Raise the Wage AZ sought to have the proposed constitutional amendment struck from the ballot, asserting that it violates the Arizona Constitution. Although a lower court ruled in favor of Prop 138, the case was escalated to the Arizona Supreme Court.

Despite its efforts, Raise the Wage AZ had failed to qualify its own minimum wage increase measure for the 2024 ballot. As it stands, Arizona law permits restaurants to pay tipped workers $3 less than the minimum wage by applying tips to bridge the gap.

If approved, Prop 138 would allow businesses to pay tipped employees 25% less than the minimum wage, provided their combined tips and hourly wage exceed the minimum wage by at least $2 per hour.

Steve Chucri, President and CEO of the Arizona Restaurant Association, expressed gratitude for the ruling. “Arizona servers and tipped employees work hard, and Prop 138 will protect their pay and jobs. We thank the Arizona Supreme Court for allowing voters to weigh in on this important issue,” he stated.

The Arizona Restaurant Association initially brought this measure to the legislature, also forming an advocacy group that claimed to represent tipped workers supporting the proposition. However, connections between this group and the ARA were not disclosed by its representatives.

Jim Barton, an attorney for Raise the Wage AZ, criticized the court’s decision. He cautioned that the ruling may deceive voters, equating the act’s title with a decrease in workers’ wages. “It is called the Tipped Worker Protection Act, and it LOWERS tipped workers’ wages. It never raises their wages. It never provides them any protection,” he stated in an email to the Arizona Mirror. Barton urged voters to be vigilant regarding the clarity of legislative referrals this election cycle.