Voters in Arizona and Massachusetts to Decide Fate of Tipped Workers' Wages
Ballot measures in both states will address whether to maintain a lower minimum wage for tipped workers or align it with the standard minimum wage.
- Arizona's Proposition 138 proposes allowing employers to pay tipped workers 25% less than the regular minimum wage, provided their total pay with tips is at least $2 above the minimum.
- Massachusetts voters will consider a measure to gradually increase the tipped minimum wage to match the regular minimum wage by 2029.
- Advocates argue that eliminating the subminimum wage protects workers from exploitation, while opponents claim it could lead to reduced hours and higher menu prices.
- Federal labor law requires employers to ensure tipped workers earn at least the minimum wage, but compliance issues have been reported.
- The outcome of these votes could influence similar measures in other states and affect the ongoing national debate over minimum wage policies.