Prop 206 2016-10-24T11:53:08+00:00

Prop 206 “The Fair Wages and Healthy Families Act” Fact Sheet

What is it?

Increases the minimum wage to $12/hour by 2020, with an immediate increase to $10/hour starting on January 1, 2017.

Mandates 40 hours of annual paid sick leave time, 24 hours for smaller employers (with fewer than 15 employees).

Con:

It will cost jobs.

Raising the minimum wage makes it more expensive to pay existing workers and hire new ones. As a result, entry-level jobs—like at restaurants and stores—will disappear because it’s cheaper to switch to kiosks, computer screens, and other new technologies that replace people with machines. Employers are also more likely to cut employee hours and scale back plans for additional hiring. The minimum wage is for entry-level jobs. Young people have to start somewhere, but one economic study says up to 75,000 Arizonans won’t get hired if the minimum wage is raised too sharply.

It hits small businesses the hardest.

Besides mandating a 49% increase in a small business’ largest cost–-labor—Prop 206 also has an expensive new regulation that mandates sick pay for workers. Big companies may be able to afford that because they have so many workers; but it’s another substantial burden for small companies that are just getting by. Arizona’s economy was one of the worst-hit in the country during the recession, and we’re just now getting our jobs back. Why would we hit small businesses with big new costs and regulations?

It disproportionately impacts younger workers & those with lesser skills.

Employers hire fewer people when they have to pay more for those with limited experience or skills.

Prices for goods and services will increase.

The increase in costs will be passed on to the consumer. Expect to see an immediate increase in your restaurant bill as well as other basic services.

 

Pro:

Fairer wages will save many businesses time and money

Through better employee performance and retention reducing costs related to hiring and training new employees

It expands businesses’ customer base

When employees have more disposable income, they invest those dollars back into our economy.

Raise the quality of life in our community

Make it a more desirable place to live, work, and run a business.

Ability to compete to attracting and retaining a topnotch team.