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Arizona Proposition 138, Wages for Tipped Workers Amendment (2024)
| Arizona Proposition 138 | |
|---|---|
 | |
| Election date November 5, 2024 | |
| Topic Minimum wage | |
Status Defeated | |
| Type Constitutional amendment | Origin State legislature |
Arizona Proposition 138, the Wages for Tipped Workers Amendment, was on the ballot in Arizona as a legislatively referred constitutional amendment on November 5, 2024.[1] The ballot measure was defeated.
A "yes" vote supported allowing for tipped workers to be paid 25% less per hour than the minimum wage if any tips received by the employee were not less than the minimum wage plus $2 for all hours worked. |
A "no" vote opposed allowing for tipped workers to be paid 25% less per hour than the minimum wage if any tips received by the employee were not less than the minimum wage plus $2 for all hours worked. |
Election results
See also: Results for minimum wage and labor-related ballot measures, 2024
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Arizona Proposition 138 |
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|---|---|---|---|---|
| Result | Votes | Percentage | ||
| Yes | 792,557 | 25.24% | ||
|
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2,348,023 | 74.76% | ||
Overview
What would this amendment have done?
- See also: Text of measure
The amendment would have allowed for tipped workers to be paid 25% less per hour than the minimum wage if any tips received by the employee were not less than the minimum wage plus $2 for all hours worked. In 2024, businesses in Arizona could pay tipped workers $11.35, which was $3 less than the minimum wage of $14.35, as long as their take-home pay, including tips, amounted to the minimum wage. Under this amendment, businesses would have been able to pay workers $3.58 (25%) less than the current minimum wage of $14.35, which is $10.77, provided that the total take-home pay of each worker was at least the hourly minimum wage plus $2 for each hour worked.
Did Arizona voters decide on other ballot measures regarding the minimum wage?
- See also: Minimum wage ballot measures
Arizona voters previously decided on minimum wage measures in 2006 and 2016. In 2006, voters approved Proposition 202 by 65.37%-34.63%, which established a state minimum wage of $6.75 an hour. Previously, Arizona did not have a state minimum wage deferred to the federal minimum wage, which was $5.15 an hour in 2006.
In 2016, Arizona voters approved Proposition 206 by 58.33%-41.67%, which raised the minimum wage to $10 in 2017, and then incrementally to $12 by 2020, and created a right to paid sick time off from employment.
What were the arguments for and against the measure?
In support of this measure, State Rep. Justin Wilmeth said, "We all know that the restaurant industry is a very small profit industry. If you have a disparity in a forced raise of costs for a business, they will either shut down, limit staff or make other alternatives."[2]
In opposition to the measure, Jim Barton, attorney for One Fair Wage AZ, said, "If they're saying that the restaurants need to use the tips that the servers earn to cover their responsibility to pay the worker, then that restaurant’s not a very good business … Businesses can afford to pay their workers a fair share. And there is no reason why the boss should get to take credit for the tip that the server earns."[3]
Text of measure
Ballot title
The official ballot title was as follows:[4]
| “ |
AMENDING ARTICLE XVIII, BY ADDING SECTION 11, CONSTITUTION OF ARIZONA. Descriptive Title PERMITS EMPLOYERS TO PAY UP TO 25% LESS THAN THE MINIMUM HOURLY WAGE FOR EMPLOYEES WHOSE COMPENSATION INCLUDES TIPS OR GRATUITIES FROM PATRONS, BUT ONLY IF THE EMPLOYER CAN ESTABLISH THAT THE EMPLOYEE ULTIMATELY RECEIVED THE MINIMUM WAGE PLUS $2 FOR EVERY HOUR WORKED. [5] |
” |
Ballot summary
The official ballot summary was as follows:[4]
| “ | A "yes" vote shall have the effect of amending the Arizona Constitution to allow employers to pay employees up to 25% less than the minimum hourly wage if the employer can establish that the employee’s wage plus tips or gratuities is at least $2 more than the minimum wage for every hour worked.
|
” |
Constitutional changes
The ballot measure would have added a Section 11 to Article XVIII of the Arizona Constitution. The following underlined text would have been added:
11. Tipped workers; wages
For any employee who customarily and regularly receives tips or gratuities from patrons or others, the employer may pay a wage up to twenty-five percent per hour less than the minimum wage established by statute if the employer can establish by the employer's records of charged tips or gratuities or by the employee’s declaration for federal insurance contributions act purposes that for each week, when adding tips or gratuities received to wages paid, the employee received not less than the minimum wage plus $2 for all hours worked. Compliance with this section is determined by averaging tips or gratuities received by the employee over the course of the employer’s payroll period or any other period selected by the employer that complies with laws enacted by the legislature.[5]
Readability score
- See also: Ballot measure readability scores, 2024
Using the Flesch-Kincaid Grade Level (FKGL) and Flesch Reading Ease (FRE) formulas, Ballotpedia scored the readability of the ballot title and summary for this measure. Readability scores are designed to indicate the reading difficulty of text. The Flesch-Kincaid formulas account for the number of words, syllables, and sentences in a text; they do not account for the difficulty of the ideas in the text. The attorney general wrote the ballot language for this measure.
The FKGL for the ballot title is grade level 12, and the FRE is 26. The word count for the ballot title is 68.
The FKGL for the ballot summary is grade level 15, and the FRE is 42. The word count for the ballot summary is 66.
Support
Supporters
Officials
- State Sen. Javan Daniel Mesnard (R)
- State Rep. Justin Wilmeth (R)
Organizations
Arguments
Opposition
Opponents
Officials
- Tucson Mayor Regina Romero (D)
Political Parties
Organizations
Arguments
Campaign finance
Ballotpedia did not identify ballot measure committees registered to support or oppose the ballot measure.[6]
| Cash Contributions | In-Kind Contributions | Total Contributions | Cash Expenditures | Total Expenditures | |
|---|---|---|---|---|---|
| Support | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Oppose | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Total | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
Background
Arizona tipped wages
As of 2024, businesses in Arizona could pay tipped workers $3 less than the state minimum wage, as long as their take-home pay, including tips, amounted to the minimum wage. This is called a tip credit. As of 2024, the minimum wage in Arizona was $14.35. This meant that employers could pay tipped employees $11.35 as long as their take home pay was above the minimum wage.[7]
Minimum wage by state
The average minimum wage in 2024 was $10.69, up from $10.47 in 2023 and $9.85 in 2022.
After 2024 increases, minimum wages were set to be highest in Washington ($17.00 per hour) and California ($16.00 per hour). Minimum wages were set to be the lowest in Georgia and Wyoming, where the states' $5.15 minimum wages are superseded by the federal government's $7.25 per hour requirement. Going into 2024, 20 states used the federal minimum wage rate of $7.25, and 30 states provided for state minimum wages above the federal minimum wage.
The map below shows state minimum wages in 2024:
Minimum wage ballot measures
From 1996 to 2024, there were 32 ballot measures to increase state minimum wages. Voters approved 28 (87.50%) and rejected four (12.50%).[8] In 2024, California and Massachusetts became the first states to reject minimum wage increase ballot measures since 1996. The other two defeated measures were on the ballot in 1996 in Missouri and Montana.
The following chart shows election outcomes for minimum wage increase ballot measures from 1996 to 2024.
| Measures to increase state minimum wages (1996-2024) | |||||||
|---|---|---|---|---|---|---|---|
| Year | State | Measure | Wage | Type | Yes votes (%) | No votes (%) | Outcome |
| 2024 | California | Proposition 32 | $18.00 (2026) | Initiative | N/A | N/A |
|
| 2024 | Massachusetts | Question 5 | $15.00 (2029) for Tipped Employees[9] | Initiative | N/A | N/A |
|
| 2024 | Missouri | Proposition A | $15.00 (2026) | Initiative | N/A | N/A | 
|
| 2024 | Alaska | Ballot Measure 1 | $15.00 (2027) | Initiative | N/A | N/A |
|
| 2022 | Nebraska | Initiative 433 | $15.00 (2026) | Initiative | 58.66% | 41.34% |
|
| 2022 | Nevada | Amendment 2 | $12.00 (2024) | Referral | 55.18% | 44.82% |
|
| 2020 | Florida | Amendment 2 | $15.00 (2026) | Initiative | 60.82% | 39.18% |
|
| 2018 | Arkansas | Issue 5 | $11.00 (2021) | Initiative | 68.46% | 31.54% |
|
| 2018 | Missouri | Proposition B | $12.00 (2023) | Initiative | 62.34% | 37.66% |
|
| 2016 | Arizona | Proposition 206 | $12.00 (2020) | Initiative | 58.33% | 41.67% |
|
| 2016 | Colorado | Amendment 70 | $12.00 (2020) | Initiative | 55.36% | 44.64% |
|
| 2016 | Maine | Question 4 | $12.00 (2020) | Initiative | 55.50% | 44.50% |
|
| 2016 | Washington | Initiative 1433 | $13.50 (2020) | Initiative | 57.42% | 42.58% |
|
| 2014 | Alaska | Measure 3 | $9.75 (2016) | Initiative | 69.35% | 30.65% |
|
| 2014 | Arkansas | Issue 5 | $8.50 (2017) | Initiative | 65.94% | 34.06% |
|
| 2014 | Nebraska | Initiative 425 | $9.00 (2016) | Initiative | 59.47% | 40.53% |
|
| 2014 | South Dakota | Measure 18 | $8.50 (2015) | Initiative | 55.05% | 44.95% |
|
| 2013 | New Jersey | Question 2 | $8.25 (2014) | Referral | 61.26% | 38.74% |
|
| 2006 | Arizona | Proposition 2022 | $6.75 (2007) | Initiative | 65.37% | 34.63% |
|
| 2006 | Colorado | Initiative 42 | $6.85 (2007) | Initiative | 53.30% | 46.70% |
|
| 2006 | Missouri | Proposition B | $6.50 (2007) | Initiative | 75.94% | 24.06% |
|
| 2006 | Montana | I-151 | $6.50 (2007) | Initiative | 72.69% | 27.31% |
|
| 2006 | Nevada | Question 6 | $6.15 (2006)[10] | Initiative | 68.71% | 31.29% |
|
| 2006 | Ohio | Amendment 2 | $6.85 (2007) | Initiative | 56.65% | 43.35% |
|
| 2004 | Florida | Amendment 5 | $6.15 (2005) | Initiative | 71.25% | 28.75% |
|
| 2004 | Nevada | Question 6 | $6.15 (2006)[10] | Initiative | 68.4% | 31.6% |
|
| 2002 | Oregon | Measure 25 | $6.90 (2003) | Initiative | 51.3% | 48.7% |
|
| 1998 | Washington | Initiative 688 | $6.50 (2000) | Initiative | 66.1% | 33.9% |
|
| 1996 | California | Proposition 210 | $5.75 (1998) | Initiative | 61.45% | 38.55% |
|
| 1996 | Missouri | Proposition A | $6.75 (1999)[11] | Initiative | 28.70% | 71.30% |
|
| 1996 | Montana | I-121 | $6.25 (2000) | Initiative | 43.53% | 56.47% |
|
| 1996 | Oregon | Measure 36 | $6.50 (1999) | Initiative | 56.85% | 43.15% |
|
Path to the ballot
Amending the Arizona Constitution
- See also: Amending the Arizona Constitution
A simple majority vote is required during one legislative session for the Arizona State Legislature to place a constitutional amendment on the ballot. That amounts to a minimum of 31 votes in the Arizona House of Representatives and 16 votes in the Arizona State Senate, assuming no vacancies. Amendments do not require the governor's signature to be referred to the ballot.
Amendment in the state Legislature
The amendment was initially introduced on February 5, 2024, and passed the Senate on March 12. However, the measure was amended on to pertain to tipped workers and passed the House on April 3, 2024 by 35-24. It passed the Senate again on June 12, 2024 by 16-12.[1]
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Lawsuit
On June 19, 2024, Raise the Wage Arizona filed a lawsuit with the Arizona Superior Court of Maricopa County to remove the measure off the ballot, saying that the measure is "unconstitutionally bearing a deceptive title in violation of the Arizona Constitution, Article IV, Part 2, Section 13. The lawsuit said, "SCR 1040’s title is misleading to the point of fraud, and creates a significant danger of electorate confusion and unfairness, because it is likely to mislead voters to believe that it will protect tipped workers, when in fact, it exploits tipped workers by subjecting them to an even lower minimum wage than the current subminimum wage that they can be paid and by adding it to the constitution."[12]
How to cast a vote
- See also: Voting in Arizona
See below to learn more about current voter registration rules, identification requirements, and poll times in Arizona.
See also
External links
Footnotes
- ↑ 1.0 1.1 Arizona Legislature, "AZ SCR1040," accessed April 5, 2024
- ↑ Scottsdale Progress, "Voters could be asked to cut tipped workers’ wages," April 13, 2024
- ↑ ABC 15, "Arizona lawmakers considering change to minimum wage for tipped workers," April 15, 2024
- ↑ 4.0 4.1 Arizona Secretary of State, "Official Ballot Measure Language," accessed July 27, 2024
- ↑ 5.0 5.1 5.2 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source. Cite error: Invalid
<ref>tag; name "quotedisclaimer" defined multiple times with different content - ↑ Arizona Secretary of State, "Election Funds Portal," accessed March 15, 2023
- ↑ NOLO, "Arizona Laws for Tipped Employees," accessed July 5, 2024
- ↑ Note: In 2014, voters approved an advisory question on increasing the minimum wage in Illinois. As this question was nonbinding, the measure is not counted here.
- ↑ Question 5 would have increased the minimum wage for tipped employees to match the general state minimum wage, which was $15.00 in 2024.
- ↑ 10.0 10.1 Question 6 required employers to compensate employees $5.15 per hour when the employer provides health benefits or $6.15 per hour when the employer does not provide health benefits.
- ↑ Proposition A would have also added 15 cents to the minimum wage each year beginning in 2000.
- ↑ Courthouse News Service, "Arizona nonprofit says ‘deceptive’ ballot measure will cut tipped workers’ wages," June 21, 2024
- ↑ Arizona Revised Statutes, "Title 16, Section 565," accessed July 18, 2024
- ↑ Arizona generally observes Mountain Standard Time; however, the Navajo Nation observes daylight saving time. Because of this, Mountain Daylight Time is sometimes observed in Arizona.
- ↑ 15.0 15.1 15.2 Arizona Secretary of State, "Voters," accessed July 18, 2024
- ↑ Arizona Secretary of State, "Arizona Voter Registration Instructions," accessed July 18, 2024
- ↑ Supreme Court of the United States, "No. 24A164," accessed August 22, 2024
- ↑ The Washington Post, "Supreme Court allows Arizona voter-registration law requiring proof of citizenship," August 22, 2024
- ↑ Bloomberg Law, "Supreme Court Partly Restores Voter Proof-of-Citizenship Law ," August 22, 2024
- ↑ Reuters, "US Supreme Court partly revives Arizona's proof of citizenship voter law," August 22, 2024
- ↑ Under federal law, the national mail voter registration application (a version of which is in use in all states with voter registration systems) requires applicants to indicate that they are U.S. citizens in order to complete an application to vote in state or federal elections, but does not require voters to provide documentary proof of citizenship. According to the U.S. Department of Justice, the application "may require only the minimum amount of information necessary to prevent duplicate voter registrations and permit State officials both to determine the eligibility of the applicant to vote and to administer the voting process."
- ↑ ArizonaElections.gov, "What ID Do I Need to Vote Quiz," accessed March 14, 2023
- ↑ Arizona State Legislature, “Arizona Revised Statutes 16-579,” accessed July 19, 2024
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