Court Greenlights Ballot Measure for Tipped Workers

Arizona voters will soon face a pivotal decision regarding the wages of tipped workers in restaurants. The Arizona Supreme Court confirmed that a proposed measure, informally dubbed the “Tipped Workers Protection Act,” will appear on the ballot.

If passed, the law would allow restaurants to reduce their hourly pay for tipped employees from $11.35 to $10.76. This controversial proposal has drawn criticism for being potentially deceptive, leading Raise the Wage Arizona to label it “misleading to the point of fraud.” They argue that the title creates confusion among voters and should be disqualified from the ballot.

However, Chief Justice Ann Scott Timmer stated that the court unanimously agrees with Maricopa County Superior Court Judge Peter Thompson’s conclusion that the title is not misleading. The judge indicated that the title does not promise a wage increase and that proponents of the measure believe it could benefit both businesses and employees.

Thompson emphasized that while the measure can be referred to as the Tipped Workers Protection Act, its formal title clearly outlines its main provisions. He expressed that this provides necessary clarity on the implications of the proposed law.

Jim Barton, representing Raise the Wage Arizona, cautioned voters about the implications of Proposition 138. This initiative marks the third time minimum wage regulations are being contested in the past two decades.

Historically, Arizona voters approved the state’s first minimum wage in 2006, setting it at $6.75 per hour, which later increased to $12 an hour through a multi-step process in 2016. Presently, the minimum wage stands at $14.35, contrasting with the federal minimum wage of $7.25.

Currently, restaurants can pay tipped workers $3 less than the state minimum wage, provided that the total earnings, including tips, meet the minimum. The proposed amendment, crafted by the Arizona Restaurant Association, aims to enshrine a provision into the state constitution allowing restaurants to pay tipped workers 25% less than the minimum wage, while ensuring their total earnings exceed the minimum by at least $2.

Steve Chucri, president and CEO of the restaurant association, asserts that nobody would lose money if the proposition passes, as most tipped workers already earn more through gratuities. He argues that the change would alleviate financial pressures on restaurants, ultimately protecting jobs and allowing for greater workforce retention.

The court’s decision allows the Restaurant Association to present its case to voters, characterizing the ongoing debate as a conflict over differing economic viewpoints regarding employee welfare and business sustainability.