ARIZONA HOUSE OF REPRESENTATIVES Fifty-sixth Legislature Second Regular Session
	Senate: ED DP 4-3-1-0 | 3^rd Read 16-12-2-0

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SCR1040: permanent school fund; distribution; uses

S/E: tipped workers; wages

Sponsor: Senator Mesnard, LD 13

Committee on Commerce

Summary of the Strike-Everything Amendment to SCR 1040

Overview

Subject to voter approval, adds a new section to the State Constitution relating to wages of tipped workers.

History

In 2016, voters approved The Fair Wages and Healthy Families Act (Proposition 206) which established statutory law governing the requirements for a state minimum wage.

Pursuant to A.R.S. § 23-363, employers are required to pay employees a minimum wage. The minimum wage is annually increased based on the cost of living which is measured by the percentage increase as of August of the immediately preceding year over the level as of August of the previous year of the consumer price index (all urban consumers, U.S. city average for all items) as published by the U.S. Department of Labor, with the amount of the minimum wage increase rounded to the nearest multiple of five cents.

Employers are permitted to pay an employee who customarily and regularly receives tips or gratuities from patrons or others a wage up to $3 per hour less than the minimum wage provided the employer can establish by its records of charged tips or by the employee's declaration for Federal Insurance Contributions Act purposes that for each week, when adding tips received to wages paid, the employee received not less than the minimum wage for all hours worked. Compliance must be determined by averaging tips received by the employee over the course of the employer's payroll period or any other period selected by the employer that complies with regulations adopted by the Industrial Commission of Arizona.

According to the Industrial Commission of Arizona, the current state minimum wage is $14.35 per hour.

Provisions

1. Allows an employer, for any employee who customarily and regularly receives tips or gratuities from patrons or others, to pay a wage up to 25% per hour less than the statutorily set minimum wage provided the employer can establish by the employer's records of charged tips or gratuities or by the employee's declaration for Federal Insurance Contributions Act purposes that for each week, when adding tips or gratuities received to wages paid, the employee received not less than the minimum wage plus $2 for all hours worked.

2. Asserts that compliance is determined by averaging tips or gratuities received by the employee over the course of the employer's payroll period or any other period selected by the employer that complies with laws enacted by the Legislature.

3. Cities this act as the "Tipped Workers Protection Act."

4. Requires the Secretary of State to submit this proposition to the voters at the next general election.

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8.                   SCR 1040

9. Initials PB           Page 0 Commerce

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