Amendment to Adjust Tipped Workers’ Minimum Wage Sparks Legal Action

Amendment to Adjust Tipped Workers' Minimum Wage Sparks Legal Action
Image By: ABC15 Arizona

A legal action has been taken by a group attempting to increase Arizona’s minimum wage in response to a rival ballot issue that the Legislature passed that would alter the hourly compensation of tipped workers.

The tip credit in Arizona would be increased from a flat $3 to up to 25% of the hourly minimum wage under House Concurrent Resolution 1040, which would amend the state constitution and change the minimum wage for tipped workers.

Raise the Wage AZ declared that the proposed constitutional amendment is an effort to mislead the people of Arizona.

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“We’re here because we’re filing a lawsuit against the Legislature, against the state, for lying to voters and lying to workers, claiming that they are protecting them when, in fact, they are taking away their meager wages,” Saru Jayaraman, One Fair Wage president stated.

Employers are allowed to pay tipped employees $11.35, or $3 less than the hourly minimum, plus tips, under the current minimum wage.

Under HCR 1040, employers’ “tip credit” would be $3.59, which means that tipped workers would receive $10.76 in addition to tips.

Raise the Wage AZ is collecting signatures on a ballot proposal to eliminate the tip credit and increase the minimum wage to $18. Attorney Jim Barton of Raise the Wage Arizona claimed that HCR 1040 specifically targets their work.

Former busser and Raise the Wage AZ canvasser Kevin Smith claimed that withholding a percentage of pay affects employees.

“It’s not protecting people when you’re taking away that little bit of money you need to live, but it’s making it harder for people to live,” he stated.

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With more than two years of expertise in news and analysis, Eileen Stewart is a seasoned reporter. Eileen is a respected voice in this field, well-known for her sharp reporting and insightful analysis. Her writing covers a wide range of subjects, from politics to culture and more.