What Does Tucson's $15 Minimum Wage Mean For Workers, Employers?

TUCSON, AZ — Tucson voters in Tuesday's election overwhelmingly favored increasing the city's minimum wage to $15 per hour via Proposition 206.

Even with 16,500 ballots still uncounted, the decision is already made with 44,042 votes in favor of Proposition 206 and 23,759 votes against it, according to unofficial election results released by the city after polls closed Tuesday.

But what does the new law mean for business owners and workers in Tucson?

Advocates, like Daniela Sherrill who is a Tucson resident and a leader in the "Fight for $15," say the new law will impact the wages of approximately 85,000 workers in Tucson.

The increase to $15 per hour won't be immediate. A $13 per hour minimum wage for workers within the city limits will kick in April 13. The minimum wage will increase to $13.50 at the start of 2023, to $14.25 at the start of 2024 and then to $15 per hour at the start of 2025.

After 2025, the minimum wage will increase each year based on the federal Consumer Price Index. The new minimum wage for the upcoming year will be announced each November.

If the state or federal minimum wage increases to a larger number than Tucson’s minimum wage, the city’s minimum will increase to that number as well. Arizona's minimum wage currently sits at $12.15 per hour and is set to increase to $12.80 per hour in 2022.

The law impacts all employees working for hire within the city.

The new law will also require large employers to pay a minimum of three hours worth of wages when an employee’s shift is cut short or canceled with fewer than 24 hours notice to the employee. Businesses with an average of 26 employees at the final quarter of the previous year are considered large employers. That number includes part-time employees, temporary workers and those employed outside the city.

Employers of workers who receive regular tips can use those tips to offset the minimum wage requirement by no more than $3 per hour.

The new law says that employees cannot be forced to receive their wages via a pay card or reloadable debit card. And employers cannot deduct the cost of damaged or lost goods or employer-provided meals from an employee's wages if that would put the employee below minimum wage.

The law also has a provision making it illegal for employers to retaliate against employees who report them for violations of the new minimum wage rules.

A provision of the law will create a new city department called the Department of Labor Standards. The department will be tasked with receiving and investigating complaints against employers accused of violating the minimum wage law, educating employers on their obligations and initiating enforcement of the law. The law obligates the department to employ wage investigators to look into suspected violations of the minimum wage law.

Per the new law, businesses must allow city inspectors access to pay and time records for their employees.

Businesses could be fined up to $100 per day for each employee paid below the minimum wage for each day a violation occurred. They could also be ordered to give the employees back-pay to make up the discrepancy. Violations of the law will be considered civil infractions.

Before the end of 2022, the law requires the city to conduct a survey of low wage workers in Tucson and identify where violations of the new law are most likely to happen. The Department of Labor Standards will then investigate employers within that sector for potential wage violations.

Several organizations like the Tucson Metro Chamber of Commerce and the Arizona Restaurant Association opposed Proposition 206 as they said it would deal another blow to the restaurant industry as it attempts to recover from COVID-19 pandemic lockdowns and restrictions and would make doing business outside of the city more desirable than hiring inside the city limits.

This story has been corrected to reflect the current Arizona minimum wage is $12.15 per hour and that it will increase to $12.80 per hour in 2022.