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A closer look at Proposition 202 The measure:
Proposition 202, the "Raise the Minimum Wage for Working Arizonans Act," would establish a statewide minimum wage with an annual cost-of-living raise.
Core facts:
Proposition 202 repeals the state prohibition on minimum wages. Employers would be required to pay $6.75 an hour, or $3.75 an hour to employees who make up the difference in tips, beginning Jan. 1, and then give inflation-based raises each year. The Industrial Commission of Arizona would enforce the law and investigate possible violations under a set of rules listed in the proposition. Cities and towns would be allowed to set higher minimum wages.
For and against:
Supporters include Arizona AFL-CIO, the Arizona Democratic Party and the Arizona Business and Professional Women.
Opponents include the Arizona Chamber of Commerce and Industry, the National Federation of Independent Business and the Arizona Retailers Association.
Real world impact:
Advocates say raising the minimum wage is a first step in helping low-wage workers get out of poverty. Critics say the rising cost of labor will force businesses to cut jobs and increase prices for products and services.
Cost-of-living raises
● This chart shows how the minimum wage would increase each year if Proposition 202 passes and inflation is 2 percent for each of the next five years. The increase is rounded to the closest 5-cent increment.
2007 $6.75
2008 $6.90
2009 $7.05
2010 $7.20
2011 $7.35
2012 $7.50
Unions vs. restaurants
● Who is campaigning for your vote? Here are some of the major contributors to each side of the minimum-wage debate, according to campaign-finance forms filed Aug. 31 with the Arizona Secretary of State.
Arizona Minimum Wage Coalition (www. azminimumwage.com)
l United Food and Commercial Workers Union Local 99
l Service Employees International Union Local 5
l Tides Foundation, a San Francisco-based philanthropy group
No on Prop. 202 (www.wagescam.com)
l Arizona Restaurant & Hospitality Association
l Tampa-based OSI Restaurant Partners Inc., which owns chains including Outback Steakhouse, Carrabba's Italian Grill and Fleming's Prime Steakhouse & Wine Bar
l Dallas-based Brinker International, which owns chains including Chili's Grill & Bar, Romano's Macaroni Grill and On The Border Mexican Grill & Cantina

Business

Prop. 202 would raise Arizona's minimum wage to $6.75

But business interests say the hike gets tricky in the fine print
By Becky Pallack
Arizona Daily Star
Tucson, Arizona | Published: 10.01.2006
Polls show most Arizonans support raising the minimum wage, but business interests want voters to read the rest of Proposition 202.
Called the "Raise the Minimum Wage for Working Arizonans Act," Proposition 202 would establish a $6.75-per-hour state minimum wage. But it also includes annual raises based on inflation for minimum-wage earners and creates an intricate system for wage complaints that business groups don't like.
"It's cherry pie with dirt filling," said Steve Chucri, president of the Arizona Restaurant and Hospitality Association. The industry group is one of the strongest opponents of Proposition 202.
But supporters say there is no significant downside to the proposal. Setting the minimum wage at $6.75 would mean a stronger economy and a little less poverty, said Rep. Steve Gallardo, a Phoenix Democrat and chairman of the Arizona Minimum Wage Coalition.
"The average person in Arizona realizes $5.15 (the federal minimum wage) is not sufficient to raise a family," he said.
The idea seems to have popular support. A March survey of 527 Arizona voters conducted by Northern Arizona University's Social Research Laboratory found 81 percent supported a minimum wage raise and 14 percent opposed it.
The annual cost-of-living adjustment in Proposition 202 follows inflation and rounds off to the nearest 5 cents. So if the inflation rate were 2 percent in 2007, the state minimum wage would rise to $6.90 in 2008.
The automatic raises mean voters and politicians won't reconsider the issue every year, Gallardo said.
Opponents say the automatic raises weaken merit-based pay systems.
"A lot of us would love to get a raise every year regardless of how well we do in our jobs," Chucri said.
Proposition 202 also authorizes the Industrial Commission of Arizona to investigate complaints about employers paying less than $6.75. The same appointed group enforces workplace-safety and child-labor laws.
Under Proposition 202, anyone would be able to file a complaint about an employer who pays less than $6.75 an hour. That includes anonymous complainants and third parties, such as labor unions and business competitors.
Once a complaint has been filed, the employer can't take any adverse action, such as firing the complainant or someone who helped him or her file, for 90 days, or the action will be seen as retaliation. The fine is $150 per day of retaliation.
Michelle Bolton, the Arizona director of National Federation of Independent Business and the co-chair of No on Prop. 202, an alliance of business interests, imagined a scenario in which a boss wanted to fire a low-performing worker. The worker might find out and file a complaint to keep from losing his or her job, she said.
"It's not a stretch," she added.
If Proposition 202 passes, an employer under investigation would have to open all personnel records to inspectors.
Proponents say this protects an individual worker's identity from being discovered when an investigator asks for only certain records, and it also allows inspectors to look for trends among other employees.
Employers also would have to keep personnel records for four years. Those who break the law would face a minimum penalty of $250 or civil action. They would also owe back pay with interest and an "amount equal to twice the underpaid wages."
Opponents say these rules encourage lawsuits and impose too many unneeded requirements on business owners.
Supporters defend the system, saying it's not any different from the federal minimum wage requirements, and the rules are necessary to ensure employers are being fair to workers.
● Contact reporter Becky Pallack at 573-4224 or at bpallack@azstarnet.com.
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