Glenn Hamer, president and CEO of the Arizona Chamber of Commerce and Industry, recently outlined why the chamber is challenging the constitutionality of Proposition 206, which increases the minimum wage, in a statement on the chamber's website.
Hamer said that several representatives from the business community, including other chambers of commerce, are challenging Proposition 206, which was approved in November and raises the statewide minimum wage by nearly 50 percent over the next several years. He said Proposition 206 would also "burden employers with an expensive paid leave mandate."
Hamer said that among other things, employers are locked into contracts with the state regarding payments for indigent health care and services to those with special needs, and that they can't raise prices, which would force some out of business without additional state funding.
"Some have criticized us for not suing earlier," Hamer said. "Under Arizona law we are only able to challenge on substance after passage of the initiative."
Hamer said the chamber made a strong case against the proposition during the campaign as well. "Unfortunately, our predictions of reduced employee hours, layoffs, higher prices, accelerated investments in automation, or even business closures, will begin to materialize if the initiative takes effect," he said.
Hamer said that the the case against the proposition's constitutionality is the correct path to pursue, and that he hopes the courts prevent it from taking effect.
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