Overview A lawsuit has been filed in Arizona state court seeking to stop the newly approved minimum wage hike and paid sick leave ballot initiative from taking effect. According to the Arizona Chamber of Commerce, the proposal's lack of a state revenue generator and its inclusion of multiple subjects violate the state's constitution.
Details. On November 8, 2016, Arizona voters enacted the Fair Wages and Healthy Families Act (“FWHFA” or “the Act”), which amends the Arizona Minimum Wage Act (“AMWA”) to provide for incremental increase, up to $12 per hour by 2020, to the minimum wage for Arizona workers beginning on January 1, 2017. The Act also requires that, beginning July 1, 2017, Arizona workers shall accrue, and have the legal right to use, a minimum amount of “Paid Sick Time” benefits each year.
In mid-December, the Arizona Chamber of Commerce and its Phoenix, Tucson, and Flagstaff affiliates, two owners and two employees at restaurant chain Valle Luna, and the Arizona Licensed Beverage Association (“Plaintiffs’) filed a lawsuit in state court seeking to stop the newly approved minimum wage hike and paid sick leave ballot initiative from taking effect. In the lawsuit, the Chamber claims that the measure violates the state constitution by (1) failing to provide a revenue source for the costs the state may incur and (2) joining together two unrelated provisions in violation of the state’s separate amendment rule.
Call to Action. The minimum wage law remains in effect and you should continue to prepare to comply with the July 1, 2017 effective date of the paid sick time requirement. We will notify you as soon as the court rules on this matter.