A group trying to raise Arizona’s minimum wage has filed suit over a competing ballot measure passed by the Legislature that would change the hourly wage for tipped workers.
House Concurrent Resolution 1040 would amend the Arizona Constitution and alter the minimum wage for tipped workers by changing the state's tip credit from a flat $3 to up to 25% of the hourly minimum wage.
The measure is named the “Tipped Workers Protection Act” – a name Raise the Wage AZ says is misleading.
Raise the Wage AZ said the proposed constitutional amendment is an attempt to deceive Arizona voters.
“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,” said Saru Jayaraman, One Fair Wage president.
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Under the current minimum wage, employers can pay tipped workers $11.35, or $3 less than the hourly minimum, plus tips.
The “tip credit” – the amount employers can keep – would be $3.59 under HCR 1040, meaning tipped workers would be paid $10.76 plus tips.
Raise the Wage AZ is gathering signatures for a ballot measure to raise the minimum wage to $18 – and get rid of the tip credit. Raise the Wage AZ attorney Jim Barton said HCR 1040 is directly aimed at their effort.
“They know they can't beat the One Fair Wage Act at the ballot box,” he said. “So what do they do? They try and cheat.”
The restaurant industry says the tip credit helps offset the cost of running a restaurant.
“It will bring harm to restaurants,” said Steve Churcri, Arizona Restaurant Association president and CEO. “It will absolutely add costs to restaurants because they will no longer have that tip credit.”
Kevin Smith, a canvasser for Raise the Wage AZ and a former busser, said keeping a portion of wages hurts workers.
“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 said.
