State Supreme Court agrees to take up minimum wage case

Regional News

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Arizona’s Supreme Court agreed to hear arguments by the business community that the new voter-approved minimum wage violates the state’s Constitution.

The court accepted jurisdiction of the case and announced Tuesday afternoon it will hold a hearing on March 9. At the heart of the issue, which the court will hear, is the claim that Proposition 206 violates the Constitution’s revenue source rule. The case was brought by the Arizona Chamber of Commerce and other business groups and supported by Gov. Doug Ducey and Republican legislative leaders.

Justices had declined to block the minimum wage from taking effect on January 1, spurning an appeal from those same business groups after their initial complaint was struck down in Maricopa County Superior Court. Now attorneys will again argue that Proposition 206 violates a requirement in the Arizona Constitution that any new voter-mandated spending designate a funding source to cover its costs. The funding stream may not come from the general fund.

Attorneys for the chamber had offered up other legal arguments against the law in Superior Court, but the Supreme Court will only hear arguments concerning the revenue source rule. Opponents of the minimum wage hike contend the state is forced to increase spending for services through the Arizona Health Care Cost Containment System, which contracts with service providers to ensure people have access to care.

Not doing so could lead to the state running afoul of federal regulations and losing federal funds, opponents have argued.