Recent news stories have caused many to question the legality of the state’s new $7.50 an hour minimum wage law. Proposition 206 was passed by Arizona voters in November without a single Democratic vote. The increase in the minimum wage came without the popularly expected “grass-roots” support of local restaurant and employee unions.
When the bill was signed into law, many believed it would only be applied to the cities of Phoenix and Tempe and would not affect employers anywhere in Arizona. However, the law is now being challenged in court by non-profit organizations and small business owners who say the law is unfair and unenforceable. Many businesses are scared of going against the will of the state legislature, which passed the minimum wage lawsuit resolution with little opposition in sight. These same business owners also claim that the law itself is unworkable because it does not allow for an audit of the numbers prior to the increase of the minimum wage to cover all employees in Arizona.
The suit being brought against this law was brought on by the Restaurant and Hospitality Employees Union (RNU) and several other small business groups. The main complaint is that the Arizona Constitution does not allow a lawsuit when the original agreement was made before the increase of the minimum wage took effect. The original agreement was for an initial hourly rate of fifty dollars an hour and it was later raised to a flat fee of seven dollars an hour plus tips. There were no minimum number of hours that must be worked each week or period.
The suit says that these laws violate the requirement of the United States Constitution, Article 13, which provides that each state shall have control over its workers’ compensation programs. The suit further claims that the state constitution’s pre-existing condition, allowing a state to override an established minimum wage with respect to another state, is unenforceable. They argue that the state has no authority to change the existing contractual agreement between the employer and employee and therefore the pre-existing condition is a legally binding requirement. The suit also claims that the state is forcing businesses to increase the minimum pay rate without any justification whatsoever.
Business owners, both large and small, are concerned about how the current laws will affect their bottom line. Many of them say that it is extremely important for them to be able to increase the wages that they pay their employees to keep them in business. The Arizona minimum wage lawsuit is currently before the court and it could have a significant impact on the amount of money that is collected from the employers. Most of the lawsuits filed so far have been unsuccessful. Only a few of the cases have been successful.
If you are a business owner who feels as though you may be eligible for the minimum wage lawsuit, you should consult with a Phoenix attorney who specializes in employment law. You should not delay in contacting an experienced legal professional. He or she will be able to determine whether you are a suitable candidate to file a lawsuit. This will ensure that you do not face unnecessary delays in reaching a conclusion to your legal issues. In addition, you may be able to get other financial assistance from the court as well.