Arizona Supreme Court Allows Minimum Wage Increase To Take Effect

Arizona Supreme court Building

On Thursday, the Arizona Supreme Court rejected a request to temporarily block the minimum wage hike approved by residents when they voted in favor of Proposition 206. The increase goes into effect on New Year’s Day.

The justices may still consider the matter a full challenge to the law.

On Wednesday, the Arizona Speaker of the House-elect and the Senate President-elect, along with the Office of Strategic Planning & Budgeting, submitted an amicus curiae brief urging the Arizona Supreme Court to stay the implementation of Prop. 206 until the Court can rule on its constitutionality.

“Arizona voters approved a constitutional amendment in 2004 requiring that future initiatives with a budgetary impact include a dedicated funding source, and both lawmakers and voters deserve clarity on how Prop. 206 can be constitutional without one,” said the Speaker in a press release. “In the meantime, given that the immediate impact to the general fund will cost the taxpayers millions of dollars, maintaining the status quo until the Court can make a ruling will minimize Prop. 206’s disruption on the state budget process and the economy.”

Earlier this month, Maricopa County Superior Court judge Daniel Kiley ruled in favor of supporters of Proposition 206, which provides for an increase in the minimum wage and mandates workers’ sick pay.

The chambers of commerce challenged the law based on their claim that the law did not provide a source of revenue to cover the increase in costs incurred by the State of Arizona.

The minimum wage will increase from $8.05 an hour to $10 an hour on January 1 and to $12 an hour in 2020.

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  1. The long slow death of the mom and pop business has begun. Minimum wage was NEVER meant to be a living wage, it was a beginning wage. But now labor unions like the SEIU and the rest want a $15 an hour minimum wage and I will be damned if they aren’t going to get it in many states. Be very careful what you wish for, robots are being developed to cook food and serve it. Touch screen kiosks are now being utilized in many places. Applebees is a good example. You don’t have to interact with a server unless you want a copy of your bill. How many jobs will these inventions kill? Pretty stupid to want a living wage to flip burgers or put hamburger meat on a taco. Might want to get out of the basement and get an education than find a job. Oh, wait I forgot, the Obama administration has given us thousands upon thousands of poor paying part time jobs and very few skilled jobs that do pay a living wage. Yet the unemployment rate is at 4.8% and the labor participation rate is as high as it has ever been. Just more bullshit from Obama and the unions that will end up biting a whole lot of people in the ass and costing jobs and businesses across the country. Just one more failed liberal experiment.

    • and that Heather is the carrot and the stick… interesting isn’t it that it’s a Donkey chasing the carrot huh…

  2. it is funny that – government in some instances controls ‘prices’ if you work for government – Medicare – is a good example – they tell you the price is “x” and then -% for the many things that happen in legislation – now you raise the bottom – the middle gets the squeeze – be it shipped or packaged product – box mover – box loader – unrelated issues to the work being done – yet adding costs to the end product needed price – a diaper that comes in a box for TOot’s dads backside – now costs more – the price goes up. Does the employee gain? Maybe for a short term.. and as in this cycle it goes up for years – will it make being this level of worker a better thing? Go to school, get some skills, get a life.

  3. Where is the clause in this new law that requires workers receiving a 25% raise to increase their production to match? I’ve already talked with businesses who do not know how they will survive the newly-raised labor expense, and the initiative offers no inherent remedy to the businesses that have to figure out how to fund these jobs.

    Many of these low-productivity, low-wage workers will lose their jobs outright to automation or business failures, or will see their hours cut. Hopefully all of them will see their workloads increase to match their new pay, and performance evaluations that hold them to higher standards.

    All of these same low-productivity, low-wage workers will find prices generally move upward–it is glaringly ignorant not to recognize a state-foisted increase in the cost of labor as a driving force of inflation–and if you think anybody’s quality of life will improve due to the ballot box, you are sadly, sadly mistaken. Margins are thin, and the concept of money-hoarding, greedy business owners is political ploy instead of reality: This new law will raise the prices of consumer goods, with a greater impact on the low-wage workers who the lie behind this law purported to help.

    The only victors from this law are politicians who pander to the low-information voting public; businesses and workers alike are poised to lose.

  4. if your working for minimum wage – you need to go to school a learn a skill that demands more. Those that do work for minimum wage – usually have tips added to this – while I do tip perhaps to a fault – I don’t think it’s the public’s place to pay wages for an employer – which I also am – we have no one working for close to minimum wage – it makes for a distracted employee worried about way to many things besides work. Do I want to pay $20.00 for a simple breakfast? Nope… but that’s what’s coming down the pike soon. That this is not going to trigger an inflationary pump is just not looking down stream – of course prices will go up – will tips go down? That’ll be interesting to see – but when you see a tip jar sitting in front of someone that sits and collects money, no service, no other function, perhaps takes and accurate order – I do think the employer needs to get their priorities in order – then again – the employee has that choice – don’t like the pay – don’t take the job. We recently hired – the numbers of ‘I don’t care applications’ were in some numbers percentage wise. So it seems folks just don’t have work skills ? They’ve been Obamanized… ? Entitled to higher wage, ‘benefits’, when can I start my paid vacation?

  5. The amicus briefs filed by those “rented” elected officials ignores the fact that the “dedicated funding sources” in the initiative only apply to governmental budgetary matters…not private sector industrial relations. There are few, if any, public employees earning minimum wage. This decision was a victory for working people…as was the vote of the Arizona electorate.

  6. It still amazes me that special interests think that they can overturn the peoples vote. Thanks supreme Court for telling special interests to away.

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