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Arizona Minimum Wage - Prop 206

Posted By Arizona Small Business Association, Tuesday, August 23, 2016

Yesterday, the Maricopa County Superior Court dismissed a lawsuit that was challenging petitions in favor of Proposition 206, which means that Prop 206 will be on the ballot in November.

Prop 206 would significantly raise minimum wage in Arizona.  As you know, Arizona minimum wage is currently $8.05 (which is higher than the federal minimum wage), and increases every January.  This measure would increase that wage about 50% (to $12.00 per hour) over the next four years, then presumably will go back to the annual increases we see now.  On January 1, 2017, the rate would jump to $10.00 per hour. 

Prop 206 would also require employers to provide paid sick leave to employees. 

Regardless of where you fall on the philosophical debate about whether increasing everyone’s wage will actually benefit a particular person (or whether the increase in prices will offset the increase), this is an important issue for Arizona businesses.  To maintain profitability, businesses forced to raise their wages beyond market rates must typically raise prices.  

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