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Arizona ballot measure could change minimum wage for tipped workers

Proponents of Proposition 138 say it protects the existing tip credit. Those opposing it say it's misleading to voters.

PHOENIX — Arizona voters will get the option to decide if the minimum wage for tipped workers will change 

Proposition 138 would amend the state's constitution to change the minimum wage for tipped employees in the state. 

Arizona law requires tipped workers to be paid $3.00 less than the state's minimum wage. 

Right now the state's minimum wage is $14.35, and based on Arizona law, tipped workers make $11.35 an hour. 

Under Proposition 138, also called Tipped Worker's Protection Act, tipped workers would make 25% less than the minimum wage instead of $3.00 less.

Therefore if the state's minimum wage is $14.35 an hour, a tipped employee would make $10.77 under the ballot measure. 

Steve Chucri, President of the Arizona Restaurant Association, said the measure guarantees  tipped workers will "make $2.00 more with tips than they're currently working, in order for a restaurant owner to be in conformance with the law." 

"Eighty-seven percent of tipped workers across the country like the tip credit system," Chucri said. "This is bolstering it by giving them the $2 extra guaranteed." 

Chucri also said it protects the tip credit in the state which he said helps eliminate surcharges that will be passed down to customers. 

"It's preserving the tipping structure in Arizona so restaurants can continue to grow and flourish," Chucri said. "We can hire more people, and the tipped workers can make more money."

Jim Barton, an attorney, along with the political action committee Raise the Wage AZ, challenged the measure back in June and claimed the title 'Tipped Workers Protection Act' is "deceptive". 

However, a Maricopa County Superior Court judge ruled it was not, keeping it on the ballot. 

 "First off, it takes this sub-minimum wage, and instead of it being in the law that can be, changed and amended, it moves it into our Constitution," Barton said. "The second thing it does is, instead of being $3 less an hour, it says 25% less an hour." 

Barton said the measure's math conversions are "complicated" and "confusing". 

"This thing [is] never going to be checked, and that $2 more they put in there is a complete red herring," Barton said.  "All it does is it just makes the formula more complicated, and it means workers will not know that they can demand, 'Hey, give me my 25% back, I didn't make enough money to get over this threshold '.

Barton filed an appeal with the Arizona Supreme Court to get Proposition 138 taken off the ballot. 

The state Supreme Court decision could be made the week of August 18. 

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