Flagstaff, Arizona (AZ Family) — Proposition 138, an Arizona ballot measure that will determine how workers are paid in tips, will be decided by voters next month. Currently, employers can pay tipped employees $3 less than the minimum wage.
If passed, workers could earn 25% less per hour than the minimum wage as long as their take-home pay, including tips, is at least $2 above the minimum wage.
The minimum wage in Arizona will be $14.70 an hour in 2025, and $17.85 in Flagstaff.
If Prop. 138 passes, tipped employees would lose 65 cents an hour. But in Flagstaff, the pay cut is $3.45 an hour, causing concern for local workers.
“I think we should move forward, not backward,” said Fran Alvarado, a local worker.
The cost of living is 14% higher than the national average and more than 10% higher than Phoenix, according to the Flagstaff Chamber of Commerce, which says hourly workers already struggle to cover rent and food.
“Our generation has seen wages go from very low to almost double in the last 10 years,” Alvarado said.
of Arizona Restaurant Association I support Proposition 138 because it reduces costs for restaurants and ensures that tipped employees are paid appropriately.
Flagstaff restaurant owner John Conley also rejected the proposal for these reasons. He said it would be a relief for Flagstaff restaurants, which have struggled with sharp increases in hourly wages since 2016.
He said rising labor costs have forced many businesses in the region to close, limit staffing and raise prices.
But workers like Alvarado said this would force them to rely on unreliable tips, placing the burden on consumers rather than restaurant owners.
“Why would we try to fight back against the progress we’ve made?” Alvarado said. “And why aren’t we fighting against corporations and landlords and things like that? We’re just ordinary people looking for money that belongs to us.”
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