Judge Upholds ‘Tipped Workers Protection Act’ for Arizona’s November Ballot

Maricopa County Superior Court Judge Peter Thompson has ruled that Proposition 138, also known as the “Tipped Workers Protection Act,” will remain on the ballot for the November election.

Raise the Wage AZ, a political action committee advocating for wage increases for service workers, had challenged Proposition 138 in June. The group argued that the proposition was “sufficiently deceptive to the point of fraud” and could cause significant confusion among the electorate.

In their lawsuit, Raise the Wage AZ requested the court to declare the proposed constitutional amendment as a violation of the state constitution and to prevent the secretary of state from certifying it for the November ballot.

Raise the Wage AZ also plans to introduce its own ballot measure, the “One Fair Wage Act,” which seeks to raise the state minimum wage to $18 per hour. They argued that placing the competing measure on the ballot could hinder the exercise of free election rights.

However, Judge Thompson declined the challenge, noting that there is no specific legal authority that allows a court to remove an initiative or legislative constitutional amendment because it might affect the passage of a competing ballot measure.

The Raise the Wage ballot measure aims to gradually eliminate the practice of using workers’ tips to meet minimum wage requirements, ultimately requiring employers to pay the full state minimum wage regardless of tips.

By contrast, Proposition 138, introduced by the Arizona Restaurant Association, would permit employers to pay tipped workers 25% less than the minimum wage, provided the workers earn at least $2 per hour more than the minimum wage through tips.

Jim Barton, an attorney for Raise the Wage AZ, contended that Proposition 138 misleads voters into believing it protects tipped workers while actually lowering their minimum wage. However, Judge Thompson found that the proposition was neither misleading nor fraudulent.

The judge emphasized that both ballot measures have distinct titles and approaches to minimum wage policy and are legitimate procedures for ballot referrals. He also noted that the short title “Tipped Workers Protection Act,” which had been a point of contention, would not appear on November ballots.

Rep. Analise Ortiz, D-Phoenix, previously expressed feeling misled by advocates of the legislation who did not disclose their affiliation with the Arizona Restaurant Association. The act garnered support from all Republicans and some Democrats, ultimately passing in the Senate on June 12.

The Arizona Restaurant Association praised Judge Thompson’s ruling, with President and CEO Steve Chucri calling the lawsuit “bogus.” The trade group argued that special interests were attempting to block Arizona voters from expressing their views on the Tipped Workers Protection Act.

Danny Seiden, President and CEO of the Arizona Chamber of Commerce & Industry, also supported the decision, stating that the act would boost pay for tipped workers, protect their jobs, and control costs for small businesses.

Chucri expressed confidence that the balanced, bipartisan, and Arizona-led measure would gain voter approval this November.