Arizona Rejects Initiative That Would Have Cut Tipped Workers’ Pay
(Washington, D.C.) Today, Arizonan voters rejected Proposition 138, a state constitutional amendment that would have cut pay for tipped workers.
The rejection is a victory for the 108,000 tipped workers in Arizona—of which nearly 72,000 are women.
Under current law, Arizona employers can pay tipped workers an hourly wage that is $3.00 below the state’s $14.35 minimum wage. The initiative would have allowed employers to pay 25% less than the state’s minimum wage under most circumstances.
The following is a statement by Julie Vogtman, Senior Director of Job Quality at the National Women’s Law Center (NWLC):
“It’s a relief that Arizonans rejected Proposition 138, a constitutional amendment that would have locked in a lower wage for tipped workers and made life more precarious for a low-paid workforce that routinely lives paycheck to paycheck. Voters saw through the Arizona Restaurant Association’s misleading attempts to frame this measure as “protecting” tipped workers and saw Prop 138 for what it was—a pay cut. But defeating this proposed amendment still leaves many tipped workers in Arizona with an unacceptable status quo: low pay, uncertain schedules, inconsistent tips, rampant wage theft, high poverty rates and pervasive sexual harassment.
It doesn’t have to be this way. For decades, seven states have required employers to pay tipped workers the state’s full minimum wage on top of tips—and their proof of concept shows this approach benefits both workers and restaurant employers. Our analysis has shown that in these seven ‘One Fair Wage’ states, earnings for tipped workers are higher, poverty is lower, gender wage gaps are smaller—and restaurants still thrive. The state of Michigan, along with the District of Columbia and Chicago, are all phasing out minimum wages for tipped workers. Now, it’s Arizona’s turn to break from an antiquated policy, join the One Fair Wage movement—and make the lives of tipped workers more financially secure.”