The possible change in tipped worker pay on Arizona’s ballot in this election

In November, voters will decide how much tips restaurants must pay their employees.

Proposition 138 would change the minimum wage for tipped workers in Arizona by increasing the state’s tip credit from a flat $3 to a percentage.

The tip credit is the amount below the minimum wage that employers can pay their tipped employees. The difference is made up by tips.

The change would require employers to pay tipped workers 25% less than the current federal minimum wage of $14.35 per hour.

The Arizona Restaurant Association said the measure had two goals.

Employers must also ensure that their employees earn two dollars more than the minimum wage after tips, while current law only guarantees a minimum wage.

“A model that works well for restaurants, that keeps menu prices low, keeps tipped employees happy and gives them good employment,” said Steve Chucri, president of the AZ Restaurant Association.

The organization One Fair Wage criticized the proposal and tried to introduce a new law by abolishing the tip credit and raising the minimum wage to $18 an hour.

That plan was withdrawn this week following a legal challenge over the number of signatures needed to be placed on the November ballot.

The Arizona Restaurant Association also argued that eliminating the current tipping structure would dramatically increase costs to consumers.

One Fair Wage President Saru Jayaraman said in a statement Thursday that the organization would focus its attention on promoting candidates who support similar measures.

Saru also addressed Proposition 138, saying, “This sham initiative is nothing more than a shameless attempt to trick voters and get them to agree to cut the wages of tipped service sector workers across the state by 25 percent.”