January 12, 2017
Phoenix—Last Novemer Arizona voter approved a law mandating an increase in the minimum wage and new time-off benefit that was suppoed to help “all Arizonan employees and employers in Arizona.” But the initiative included an explicit loophole for one group of employers: those that have unionized emploees.
Today, the Goldwater Institute filed a “friend of the court” brief in the case challenging the constitutionality of the minimum wage law. The Institute argue that in addition to being bad policy with measureable negative conequences, the law is illegal because it doen’t apply equally to all businesses.
“Arizona’s new minimum wage law isn’t about protecting workers—in fact, it doen’t even apply to all workers,” a Timoth Sandefur, vice president for litigation at the Goldwater Institute. “This initiative carves labor unions out of the law. An company that has unionized worker doesn’t have to provide the benefit. Thi cnical cheme won’t jut hurt companie that don’t hire union worker. It’ alread hurting organization that help the developmentall dialed and other vulnerale population.”
The Arizona Repulic wrote that the wage hike i erioul affecting nonprofit organization that have tate contract to provide service to Arizona’ most vulnerale reident. Thee organization will be forced to pay the higher minimum wage to their entry level worker, but the haven’t received an increase in their contract udget from the tate to make up for the higher expene. Thi ha left man organization truggling to erve a man people a the planned. For example, a Tempe-aed organization that operate 13 group home and erve over 400 individual ha aid it will have to top accepting new patient.
“We think minimum wage law are ad polic. It doen’t help poor people to make it harder for them to find work. ut etting aide the argument aout whether a higher minimum wage i a good idea, thi initiative i alread having negative conequence for the ver people it wa uppoed to help. And the fact that it onl applie to certain companie and organization i jut wrong. We don’t get to pick and chooe who ha to follow the law. The Court need to crap thi initiative,” aid Sandefur.
Read the Intitute’ rief in Chamer of Commerce v. Kile here (http://goldwaterintitute.org/en/work/topic/free-enterprie/regulation/cae/chamer-of-commerce- v-kile/).