Arizona Supreme Court Allows Minimum Wage Increase To Take Effect

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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