The Arizona Supreme Court has decided against a case that claims Proposition 206, which will raise the minimum wage, is unconstitutional.
Under the law, the state’s minimum wage raised to $12 per hour. It also puts into effect mandatory paid sick leave.
The business groups that filed the lawsuit, which included the Arizona Chamber of Commerce, argued that the proposition was unconstitutional. They claimed it violated the revenue source rule, a requirement that a voter initiative that costs that state money needs to show where it is getting funding. The groups said that that state will be spending more on contracts with health and social service providers because of the higher wages.
Gov. Doug Ducey was also opposed to the law but said the groups would follow the Supreme Court’s ruling.