Consequences of Proposition 414
While we support the $2 increase to the state minimum wage in January (Arizona Proposition 206), Arizona has now become the 6th highest minimum wage state in the country. However, Proposition 414 mandates that Flagstaff's minimum wage be at least $2 above the state's, placing our city's wages above every other state minimum wage.
- December 2016 – $8.05
- January 2017 – $10.00 (New State Minimum Wage)
- July 2017 – $12.00 (New State Minimum Wage + $2 mandated by Proposition 414)
- January 2018 – $12.50 (New State Minimum Wage + $2 mandated by Proposition 414)
- January 2019 – $13.00 (New State Minimum Wage + $2 mandated by Proposition 414)
- January 2020 – $14.00 (New State Minimum Wage + $2 mandated by Proposition 414)
- January 2021 – $15.00 (New State Minimum Wage + $2 mandated by Proposition 414)
These increases are unsustainable for our local economy and will have the adverse effect of harming employers and employees. Already Flagstaff businesses are increasing prices on products and services, and many employers are laying off low-wage workers.
Proposition 414 had other significant and negative consequences:
- It strips employers of their constitutional rights and therefore makes it legally indefensible.
- It removes the power from our City Council in extraordinary circumstances to make necessary changes to the city minimum wage.
- Unlike other minimum wage laws, it does not provide exemptions for non-profits, child-care, or other specialty professions that would cause adverse effects.
- The additional $2 will drive some folks off critical state/federal financial and medical assistance programs without the resources to pay for them. This will happen at the same time the Non-Profit safety net is being yanked from beneath them.
Sustainable Wages Act
The Sustainable Wages Act gives you, a Flagstaff resident, an opportunity to amend Proposition 414 before the unsustainable wage increases kick in and our city suffers further damage. The Sustainable Wages Act prevents our city's minimum wage from rising too much, too quickly, while still allowing wages to increase at a fair and workable rate. It also provides protections for employers, exemptions for certain specialty professions, and gives back the power to the City Council to amend our local wages. The Sustainable Wages Act is a sensible and pragmatic alternative to Proposition 414 that will not harm our local economy, lead to job losses or increase services and goods.