does prop 138 protect workers?
If you make $17/hrIn 2024, minimum wage is $14.35 at a restaurant today, your boss can pay you as little as $11.35AZ law allows a $3 cut from minimum wage That’s $5.65$11.35 + $5.65 = $17 you’ll have to earn in tips. Under Prop 138Prop 138 would change the cut from $3 to 25% when minimum wage gets cut by 25%25% of $14.35 is $3.59 you’re still going to earn that $5.65You earned your tips either way! but now your boss can pay you just $10.7625% off minimum wage is $10.76 cutting your $17$14.35 - $3 + $5.65 = $17 down to $16.41$14.35 - $3.59 + $5.65 = $16.41
so here’s the bottom line
It’s basic math; Prop 138 trades a $3 minimum wage exemption for a 25% cut. In 2024, the difference between $3 and 25% means $0.59 your employer can cut from your paycheck and put in their pocket for every hour you work, and that adds up fast. The Prop 138 cut is close to $100 a month, and it’ll grow every year.