PHOENIX — Arizonans have voted down Proposition 138, the Tipped Workers Protection Act, in Arizona, according to Decision Desk projections.
Under current state law, which will be unchanged, employers pay tipped workers $11.35 plus tips, which is $3 less than the state hourly minimum wage. That amount is referred to as the “tip credit.”
Prop 138 would have changed the subminimum wage for tipped workers. It would have allowed employers to pay their workers $10.77 per hour plus tips or 25% less than the state's hourly minimum wage of $14.35.
FULL RESULTS: 2024 general election results in Arizona
Opponents of Prop 138 argued the measure would cut pay for tipped workers while increasing profits for restaurant owners and shifting labor costs from restaurant owners to customers.
Supporters of Prop 138 argued the measure protects the restaurant industry’s tip credit system and provides a stable income by guaranteeing that tipped workers will make at least $2 per hour more than the state’s minimum wage.
