The Common Sense Institute of Arizona has published a detailed report examining the potential economic impact of the Hotel and Event Center Minimum Wage Protection Act, which Glendale voters will decide on this November.
The measure, opposed by small and large businesses in Glendale, proposes increasing the minimum wage to $20 an hour for hotel and event center employees and includes specific provisions governing how workers are compensated and how tasks are allocated.
According to the Common Sense Institute Arizona (CSI), the findings raise significant concerns about the broader economic effects on Glendale’s tourism and events sectors.
Report’s Key Findings:
- Economic Impact: The wage protection act could reduce Glendale’s Gross Domestic Product (GDP) by between $120 million and $1.9 billion. The city’s events and accommodation sectors, which account for 8.2% of Glendale’s economy, would be the most affected.
- Job Losses: Depending on industry responses to the new policies, the city could see between 1,700 and 32,000 jobs impacted. These effects range from job losses to reduced work hours and relocation of jobs outside of Glendale.
- Cost to the City: This initiative would also impose significant costs on the City of Glendale, requiring the creation of a new Department of Labor Standards to enforce the act’s provisions. The city would need to spend an estimated $995,000 to $1.9 million annually to manage these new requirements.
- Tourism and Sports Industry: Glendale, home to key venues like State Farm Stadium and the Westgate Entertainment District, has invested heavily in its tourism sector. While Glendale only comprises 3% of the state’s population, it hosts 13% of Arizona’s sports and tourism industry. The proposed measure could significantly hurt this sector.
“Glendale has a long history of leveraging its sports and tourism industry to drive economic growth,” stated Kamryn Brunner, Research Analyst at CSI Arizona.“However, this proposed minimum wage measure could undermine those efforts by increasing costs for businesses and forcing jobs out of the city. While the goal is to ensure fair wages, the unintended consequences could hurt the very workers it aims to protect, along with the broader Glendale community.”
The report also highlights how Glendale’s unique location within Arizona’s urban core and its proximity to competing jurisdictions make it especially vulnerable to economic shifts. If businesses move just outside city limits to avoid the new regulations, Glendale could face long-term revenue losses and diminished economic prospects.
This whole thing stinks like Californication.
“The measure, opposed by small and large businesses in Glendale, proposes increasing the minimum wage to $20 an hour for hotel and event center employees”
You mean that if I, as a senior citizen, can push a broom I can get $20 an hour to do so???! I think that inflation is so far out of hand it is ridiculous!