New Report Sounds Alarm on Job Losses and Economic Fallout from Glendale’s Minimum Wage Plan

By Matthew Holloway |

The Common Sense Institute of Arizona (CSI) has published a report addressing the potential economic ramifications of Glendale’s proposed “Hotel and Event Center Minimum Wage Protection Act.” Voters will evaluate this initiative on November 5.

Originating from the Worker Power Political Action Committee, this initiative is under legal scrutiny. The City of Glendale argues it breaches Arizona’s “Single Subject Rule,” which restricts initiatives to a solitary issue. This case is now proceeding to the State Supreme Court, according to AZ Central.

The CSI report indicates that if enacted, the initiative would require hotel and event center employers to pay a minimum wage of $20 per hour. Furthermore, it implements strict limitations on employee duties and work hours. For instance, employers could face increased pay obligations based on specific cleaning parameters, which include how many square feet a worker can clean within a designated time frame, as highlighted by Brunner.

Additionally, the act necessitates the establishment of a new enforcement division within the City of Glendale to oversee compliance. This could effectively raise costs for businesses, marginalizing non-union labor, the report notes.

CSI’s analysis points to a drastic reduction in Glendale’s Gross Domestic Product (GDP)—potentially between $120 million and $1.9 billion. This could severely impact the city’s tax base, as the accommodation sector comprises about 8.2% of Glendale’s economy.

Job losses could vary significantly. Estimates suggest that as many as 32,000 positions might be at risk, with repercussions including job eliminations, reduced hours, or even relocations of employment outside the city.

The CSI elaborates that the Minimum Wage Act will place considerable financial burden on Glendale. They project the city may need to allocate between $995,000 and $1.9 million annually to support the enforcement of the initiative.

Comparisons with similar initiatives across the U.S. illustrate the potential fallout. California’s recent introduction of a $20 minimum wage for fast food workers led to reduced staff hours and layoffs. Long Beach, CA, has raised the minimum wage for hotel workers to $23, prompting significant cost adjustments for employers. With the proposed $20 minimum wage in Glendale, employers could incur additional costs of up to $10,756 per affected worker, typically passed on to consumers through increased prices and fees.

The upcoming Mattel Adventure Park at the VAI Resort, scheduled to open in late 2024, and the expanding Westgate Entertainment District could complicate matters further. These developments represent crucial drivers for Glendale’s economy, underscoring the high stakes involved with the minimum wage proposal.

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