Proposition 138: Arizona’s Tipped Worker Minimum Wage Debate
As Arizona voters gear up for the upcoming elections, one hotly contested topic on the ballot is Proposition 138, which revolves around the minimum wage for tipped workers. Proponents argue that it protects the existing tip credit system, while opponents claim it’s misleading to voters.
The Proposition Explained
Proposition 138 aims to amend Arizona’s constitution to change the minimum wage for tipped employees in the state. Currently, Arizona law mandates that tipped workers are paid $3.00 less than the state’s minimum wage of $14.35, resulting in a wage of $11.35 per hour for these employees.
Under Proposition 138, also known as the Tipped Worker’s Protection Act, tipped workers would earn 25% less than the minimum wage instead of a fixed $3.00 less. This means that if the state’s minimum wage is $14.35 an hour, a tipped employee would make $10.77 under this proposal.
Arguments For and Against
Supporters of the proposition, like Steve Chucri, President of the Arizona Restaurant Association, believe that the measure ensures tipped workers make $2.00 more with tips than they currently do, thereby complying with the law. Chucri emphasizes that 87% of tipped workers nationwide favor the tip credit system and that Proposition 138 enhances this by providing an additional guaranteed $2.00.
Chucri also asserts that the proposition safeguards the tip credit, preventing added surcharges that would burden customers. He believes that preserving the tipping structure in Arizona will foster growth in the restaurant industry, leading to more job opportunities and increased earnings for tipped workers.
However, critics, such as attorney Jim Barton and the political action committee Raise the Wage AZ, challenge the measure’s title, labeling it as deceptive. Barton argues that the proposition’s math conversions are intricate and potentially confusing for workers. He also claims that the $2.00 increase is a distraction and complicates the formula, making it challenging for workers to demand fair compensation.
What’s Next?
Despite these debates, Proposition 138 remains on the ballot following a ruling by a Maricopa County Superior Court judge. Barton has filed an appeal with the Arizona Supreme Court to remove the proposition from consideration. A decision is expected to be made the week of August 18.
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