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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.
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