Arizona Chamber of Commerce sues to block state’s minimum wage hike

PHOENIX — The Arizona Chamber of Commerce filed a lawsuit Thursday to block a voter-approved minimum wage hike, arguing that it goes against the state constitution.

The Chamber of Commerce — along with several other chambers and the owners of Valle Luna, a Phoenix-area restaurant — said Proposition 206 violated the Arizona Constitution because it failed to identify a funding source for its budget implications.

“The organized-labor-affiliated backers of Prop. 206 sloppily constructed their initiative to exempt state employees, yet failed to properly account for those employers who hold state contracts,” Glenn Hamer, the president and CEO of the Arizona Chamber of Commerce, said in a press release.

“This failure is poised to a blow a giant hole in the state budget.”

The suit specifically mentioned that people hired under state contracts to care for the developmentally disabled would not be allowed to continue their work without an infusion of funding.

Ballot measures are constitutionally required to identify a funding source if the state general fund could be affected.

Under Prop. 206, Arizona’s minimum wage will be increased to $10 per hour on Jan. 1. It will eventually raise to $12 per hour by 2020.

The measure also allows workers to earn one hour of paid sick time for every 30 hours worked, depending on the size of the business, and broadens the conditions that allow for sick time to include mental or physical illness or needing to care for a family member.

Prop. 206 was approved by an 18 percent margin.

The suit also said the separate paid sick time provision violated a constitutional provision that only a single subject can be addressed in constitutional amendment.

The lawsuit named the state of Arizona, but the group that backed Prop. 206 is expected to defend it. The group’s attorney said both claims are without merit.

Incoming Arizona House Speaker J.D. Mesnard said he was considering a lawsuit against Prop. 206 earlier this week.

“I really don’t know if there’s going to be a lawsuit,” said Mesnard, R-Chandler. “I do know that people are talking about it because of the impact. I do know that regardless people are freaking out about it.”

The Associated Press contributed to this report.

Related

UMOM program sees surging demand for 24/7 summer heat shelterGap Factory, Ann Taylor Factory, Sierra coming to Desert RidgeWestbound Interstate 10 reopens near Buckeye after crash2 West Valley industrial buildings sold in record-breaking deal3-year-old boy hospitalized after submersion at hotel pool near Camelback MountainChandler police arrest man accused of neglecting elderly mother who later died