Judge: Legislature's Tipped Workers Protection Act isn't deceptive, can stay on AZ ballot

A Maricopa County judge ruled Tuesday in favor of the Arizona Legislature's "Tipped Workers Protection Act," saying it should remain on November's ballot for voters to decide.

A group affiliated with a national organization seeking to hike the minimum wage that's pushing its own ballot measure filed a lawsuit against the legislative referral in June, claiming its title and intent are "deceptive." Judge Peter Thompson rejected the basis of the group's arguments, noting the name of the act ? now called Proposition 138 ? isn't its official title and even if it was, it wouldn't deceive voters.

"I’m glad for the ruling but I’m not surprised by it," said state Sen. J.D. Mesnard, who sponsored the referral. "The judge said exactly what I've been suggesting from the beginning, when I heard about this lawsuit."

The proposal was supported by four House Democrats and all Republican lawmakers. It would allow employers to reduce tipped workers' pay by 25% below minimum wage if the workers' base salary plus tips equals whatever the current minimum wage is, plus $2 an hour extra. Existing law lets employers reduce pay by up to $3 an hour below minimum wage as long as workers make more than minimum wage.

In a court motion last month, lawyers for the Arizona Restaurant Association said the measure would protect tipped workers' jobs by allowing employers to "operate and hire at economically sustainable levels."

Raise the Wage AZ, which is part of the national One Fair Wage organization, wanted the legislative referral struck from the ballot. It contended the ballot referral is a scheme by Republican lawmakers to thwart its own proposed ballot measure and the group would have to spend more money to educate voters about the difference between the two measures.

Thompson ruled those arguments don't constitute "irreparable harm" to the group.

"Far from voter fraud, the legislative process used for SCR 1040 is created by the Arizona Constitution. There is no allegation that the proper process was not followed," Thompson ruled.

One Fair Wage, led by lawyer and activist Saru Jayaraman, hopes to get its own proposal on the books in multiple states. It asks voters to eliminate the tipping credit for employers over time and approve a new minimum wage increase.

The local campaign filed an estimated 354,278 voter signatures last month with the state for its measure that are still being evaluated by the Secretary of State's Office. The measure needs 255,949 valid signatures to qualify for November's ballot.

The Arizona Restaurant Association, which supports the Legislature's measure, has a pending court challenge alleging many of the signatures turned in by Raise the Wage AZ are not valid.

“This was a bogus lawsuit from the start," said Steve Chucri, President & CEO of the Arizona Restaurant Association. “It is clear the out-of-state special interests behind the lawsuit simply don’t want Arizona voters to have their say this November on the Tipped Workers Protection Act.”

Attorney James Barton, who's working with Raise the Wage AZ, said an appeal to the state Supreme Court is likely.

As the group argued in court, the measure will reduce tipped workers' wages and "doesn't provide any kind of protection," he said.

Reach the reporter at  [email protected] or 480-276-3237. Follow him on X @raystern.

This article originally appeared on Arizona Republic: Judge: Lawmakers' Tipped Workers Protection Act can stay on AZ ballot