Arizona General Election 2006 Ballot Propositions November 7, 2006 PROPOSITION 202 OFFICIAL TITLE AN INITIATIVE MEASURE REPEALING SECTION 23-362, AMENDING BY ADDING NEW SECTION 23-362 RELATING TO THE ARI- ZONA MINIMUM WAGE ACT TEXT OF PROPOSED AMENDMENT Section 1. This act may be cited as the "Raise the Min- FORMED TO SHOW INDEPENDENT CONTRACTOR imum Wage for Working Arizonans Act" STATUS BY CLEAR AND CONVINCING EVIDENCE. Section 2. Purpose and intent E. "WAGE" MEANS MONETARY COMPENSATION The People of the State of Arizona hereby make the DUE TO AN EMPLOYEE BY REASON OF EMPLOY- following findings and declare their purpose in enacting MENT, INCLUDING AN EMPLOYEE'S COMMIS- this Act is as follows: SIONS, BUT NOT TIPS OR GRATUITIES. Article 8. Minimum Wage F. "LAW ENFORCEMENT OFFICER" MEANS THE The People of the State of Arizona hereby make the ATTORNEY GENERAL, A CITY ATTORNEY, A following findings and declare their purpose in enacting COUNTY ATTORNEY OR A TOWN ATTORNEY. this Act is as follows: G. "COMMISSION" MEANS THE INDUSTRIAL 1. All working Arizonans deserve to be paid a mini- COMMISSION OF ARIZONA, ANY SUCCESSOR mum wage that is sufficient to give them a fighting AGENCY, OR SUCH OTHER AGENCY AS THE GOV- chance to provide for their families. ERNOR SHALL DESIGNATE TO IMPLEMENT THIS 2. 70% of Arizona workers earning the minimum ARTICLE. wage are adults. 23-363. MINIMUM WAGE 3. More than 145,000 working Arizonans will benefit A. EMPLOYERS SHALL PAY EMPLOYEES NO by increasing the minimum wage, half of whom are LESS THAN THE MINIMUM WAGE, WHICH SHALL P working women struggling to live on less than $11,000 BE SIX DOLLARS AND SEVENTY-FIVE CENTS R per year. ($6.75) AN HOUR BEGINNING ON JANUARY 1, 4. Increasing the minimum wage reduces depen- 2007. O dency on taxpayer-funded public services B. THE MINIMUM WAGE SHALL BE INCREASED P 23-362. DEFINITIONS ON JANUARY 1, 2008 AND ON JANUARY 1 OF SUC- AS USED IN THIS ARTICLE, UNLESS THE CON- CESSIVE YEARS BY THE INCREASE IN THE COST O TEXT OTHERWISE REQUIRES: OF LIVING. THE INCREASE IN THE COST OF LIV- S A. "EMPLOYEE" MEANS ANY PERSON WHO IS ING SHALL BE MEASURED BY THE PERCENTAGE I OR WAS EMPLOYED BY AN EMPLOYER BUT DOES INCREASE AS OF AUGUST OF THE IMMEDIATELY T NOT INCLUDE ANY PERSON WHO IS EMPLOYED PRECEDING YEAR OVER THE LEVEL AS OF BY A PARENT OR A SIBLING, OR WHO IS AUGUST OF THE PREVIOUS YEAR OF THE CON- I EMPLOYED PERFORMING BABYSITTING SER- SUMER PRICE INDEX (ALL URBAN CONSUMERS, O VICES IN THE EMPLOYER'S HOME ON A CASUAL U.S. CITY AVERAGE FOR ALL ITEMS) OR ITS SUC- N BASIS. CESSOR INDEX AS PUBLISHED BY THE U.S. B. "EMPLOYER" INCLUDES ANY CORPORATION, DEPARTMENT OF LABOR OR ITS SUCCESSOR 2 PROPRIETORSHIP, PARTNERSHIP, JOINT VEN- AGENCY, WITH THE AMOUNT OF THE MINIMUM TURE, LIMITED LIABILITY COMPANY, TRUST, WAGE INCREASE ROUNDED TO THE NEAREST 0 ASSOCIATION, POLITICAL SUBDIVISION OF THE MULTIPLE OF FIVE CENTS. STATE, INDIVIDUAL OR OTHER ENTITY ACTING C. FOR ANY EMPLOYEE WHO CUSTOMARILY 2 DIRECTLY OR INDIRECTLY IN THE INTEREST OF AND REGULARLY RECEIVES TIPS OR GRATUITIES AN EMPLOYER IN RELATION TO AN EMPLOYEE, FROM PATRONS OR OTHERS, THE EMPLOYER BUT DOES NOT INCLUDE THE STATE OF ARI- MAY PAY A WAGE UP TO $3.00 PER HOUR LESS ZONA, THE UNITED STATES, OR A SMALL BUSI- THAN THE MINIMUM WAGE IF THE EMPLOYER NESS. CAN ESTABLISH BY ITS RECORDS OF CHARGED C. "SMALL BUSINESS" MEANS ANY CORPORA- TIPS OR BY THE EMPLOYEE'S DECLARATION FOR TION, PROPRIETORSHIP, PARTNERSHIP, JOINT FEDERAL INSURANCE CONTRIBUTIONS ACT VENTURE, LIMITED LIABILITY COMPANY, TRUST, (FICA) PURPOSES THAT FOR EACH WEEK, WHEN OR ASSOCIATION THAT HAS LESS THAN FIVE ADDING TIPS RECEIVED TO WAGES PAID, THE HUNDRED THOUSAND DOLLARS IN GROSS EMPLOYEE RECEIVED NOT LESS THAN THE MINI- ANNUAL REVENUE AND THAT IS EXEMPT FROM MUM WAGE FOR ALL HOURS WORKED. COMPLI- HAVING TO PAY A MINIMUM WAGE UNDER SEC- ANCE WITH THIS PROVISION WILL BE TION 206(A) OF TITLE 29 OF THE UNITED STATES DETERMINED BY AVERAGING TIPS RECEIVED BY CODE. THE EMPLOYEE OVER THE COURSE OF THE D. "EMPLOY" INCLUDES TO SUFFER OR PERMIT EMPLOYER'S PAYROLL PERIOD OR ANY OTHER TO WORK; WHETHER A PERSON IS AN INDEPEN- PERIOD SELECTED BY THE EMPLOYER THAT DENT CONTRACTOR OR AN EMPLOYEE SHALL BE COMPLIES WITH REGULATIONS ADOPTED BY DETERMINED ACCORDING TO THE STANDARDS THE COMMISSION. OF THE FEDERAL FAIR LABOR STANDARDS ACT, 23-364. ENFORCEMENT BUT THE BURDEN OF PROOF SHALL BE UPON A. THE COMMISSION IS AUTHORIZED TO THE PARTY FOR WHOM THE WORK IS PER- ENFORCE AND IMPLEMENT THIS ARTICLE AND Spelling, grammar and punctuation were reproduced as submitted in the “for” and “against” arguments. Issued by: Secretary of State Jan Brewer 101 General Election Arizona November 7, 2006 2006 Ballot Propositions MAY PROMULGATE REGULATIONS CONSISTENT SENTATIVE TO INSPECT AND COPY PAYROLL WITH THIS ARTICLE TO DO SO. RECORDS PERTAINING TO THAT EMPLOYEE. B. NO EMPLOYER OR OTHER PERSON SHALL E. A CIVIL ACTION TO ENFORCE THIS ARTICLE DISCHARGE OR TAKE ANY OTHER ADVERSE MAY BE MAINTAINED IN A COURT OF COMPE- ACTION AGAINST ANY PERSON IN RETALIATION TENT JURISDICTION BY A LAW ENFORCEMENT FOR ASSERTING ANY CLAIM OR RIGHT UNDER OFFICER OR BY ANY PRIVATE PARTY INJURED THIS ARTICLE, FOR ASSISTING ANY OTHER PER- BY A VIOLATION OF THIS ARTICLE. SON IN DOING SO, OR FOR INFORMING ANY PER- F. ANY EMPLOYER WHO VIOLATES RECORD- SON ABOUT THEIR RIGHTS. TAKING ADVERSE KEEPING, POSTING, OR OTHER REQUIREMENTS ACTION AGAINST A PERSON WITHIN NINETY THAT THE COMMISSION MAY ESTABLISH UNDER DAYS OF A PERSON'S ENGAGING IN THE FORE- THIS ARTICLE SHALL BE SUBJECT TO A CIVIL GOING ACTIVITIES SHALL RAISE A PRESUMPTION PENALTY OF AT LEAST $250 DOLLARS FOR A THAT SUCH ACTION WAS RETALIATION, WHICH FIRST VIOLATION, AND AT LEAST $1000 DOLLARS MAY BE REBUTTED BY CLEAR AND CONVINCING FOR EACH SUBSEQUENT OR WILLFUL VIOLATION EVIDENCE THAT SUCH ACTION WAS TAKEN FOR AND MAY, IF THE COMMISSION OR COURT OTHER PERMISSIBLE REASONS. DETERMINES APPROPRIATE, BE SUBJECT TO C. ANY PERSON OR ORGANIZATION MAY FILE SPECIAL MONITORING AND INSPECTIONS. AN ADMINISTRATIVE COMPLAINT WITH THE COM- G. ANY EMPLOYER WHO FAILS TO PAY THE MISSION CHARGING THAT AN EMPLOYER HAS WAGES REQUIRED UNDER THIS ARTICLE SHALL VIOLATED THIS ARTICLE AS TO ANY EMPLOYEE BE REQUIRED TO PAY THE EMPLOYEE THE BAL- OR OTHER PERSON. WHEN THE COMMISSION ANCE OF THE WAGES OWED, INCLUDING INTER- RECEIVES A COMPLAINT, THE COMMISSION MAY EST THEREON, AND AN ADDITIONAL AMOUNT REVIEW RECORDS REGARDING ALL EMPLOYEES EQUAL TO TWICE THE UNDERPAID WAGES. ANY AT THE EMPLOYER'S WORKSITE IN ORDER TO EMPLOYER WHO RETALIATES AGAINST AN PROTECT THE IDENTITY OF ANY EMPLOYEE EMPLOYEE OR OTHER PERSON IN VIOLATION OF 2 IDENTIFIED IN THE COMPLAINT AND TO DETER- THIS ARTICLE SHALL BE REQUIRED TO PAY THE MINE WHETHER A PATTERN OF VIOLATIONS HAS EMPLOYEE AN AMOUNT SET BY THE COMMIS- 0 OCCURRED. THE NAME OF ANY EMPLOYEE SION OR A COURT SUFFICIENT TO COMPENSATE 2 IDENTIFIED IN A COMPLAINT TO THE COMMIS- THE EMPLOYEE AND DETER FUTURE VIOLA- SION SHALL BE KEPT CONFIDENTIAL AS LONG AS TIONS, BUT NOT LESS THAN ONE HUNDRED N POSSIBLE. WHERE THE COMMISSION DETER- FIFTY DOLLARS FOR EACH DAY THAT THE VIOLA- MINES THAT AN EMPLOYEE'S NAME MUST BE TION CONTINUED OR UNTIL LEGAL JUDGMENT IS O DISCLOSED IN ORDER TO INVESTIGATE A COM- FINAL. THE COMMISSION AND THE COURTS I PLAINT FURTHER, IT MAY SO DO ONLY WITH THE SHALL HAVE THE AUTHORITY TO ORDER PAY- T EMPLOYEE'S CONSENT. MENT OF SUCH UNPAID WAGES, OTHER I D. EMPLOYERS SHALL POST NOTICES IN THE AMOUNTS, AND CIVIL PENALTIES AND TO ORDER S WORKPLACE, IN SUCH FORMAT SPECIFIED BY ANY OTHER APPROPRIATE LEGAL OR EQUITA- THE COMMISSION, NOTIFYING EMPLOYEES OF BLE RELIEF FOR VIOLATIONS OF THIS ARTICLE. O THEIR RIGHTS UNDER THIS ARTICLE. EMPLOY- CIVIL PENALTIES SHALL BE RETAINED BY THE P ERS SHALL PROVIDE THEIR BUSINESS NAME, AGENCY THAT RECOVERED THEM AND USED TO ADDRESS, AND TELEPHONE NUMBER IN WRITING FINANCE ACTIVITIES TO ENFORCE THIS ARTICLE. O TO EMPLOYEES UPON HIRE. EMPLOYERS SHALL A PREVAILING PLAINTIFF SHALL BE ENTITLED TO MAINTAIN PAYROLL RECORDS SHOWING THE REASONABLE ATTORNEY'S FEES AND COSTS OF R HOURS WORKED FOR EACH DAY WORKED, AND SUIT. P THE WAGES PAID TO ALL EMPLOYEES FOR A H. A CIVIL ACTION TO ENFORCE THIS ARTICLE PERIOD OF FOUR YEARS. FAILURE TO DO SO MAY BE COMMENCED NO LATER THAN TWO SHALL RAISE A REBUTTABLE PRESUMPTION YEARS AFTER A VIOLATION LAST OCCURS, OR THAT THE EMPLOYER DID NOT PAY THE THREE YEARS IN THE CASE OF A WILLFUL VIOLA- REQUIRED MINIMUM WAGE RATE. THE COMMIS- TION, AND MAY ENCOMPASS ALL VIOLATIONS SION MAY BY REGULATION REDUCE OR WAIVE THAT OCCURRED AS PART OF A CONTINUING THE RECORDKEEPING AND POSTING REQUIRE- COURSE OF EMPLOYER CONDUCT REGARDLESS MENTS HEREIN FOR ANY CATEGORIES OF SMALL OF THEIR DATE. THE STATUTE OF LIMITATIONS EMPLOYERS WHOM IT FINDS WOULD BE UNREA- SHALL BE TOLLED DURING ANY INVESTIGATION SONABLY BURDENED BY SUCH REQUIRE- OF AN EMPLOYER BY THE COMMISSION OR MENTS. EMPLOYERS SHALL PERMIT THE OTHER LAW ENFORCEMENT OFFICER, BUT SUCH COMMISSION OR A LAW ENFORCEMENT INVESTIGATION SHALL NOT BAR A PERSON OFFICER TO INSPECT AND COPY PAYROLL OR FROM BRINGING A CIVIL ACTION UNDER THIS OTHER BUSINESS RECORDS, SHALL PERMIT ARTICLE. NO VERBAL OR WRITTEN AGREEMENT THEM TO INTERVIEW EMPLOYEES AWAY FROM OR EMPLOYMENT CONTRACT MAY WAIVE ANY THE WORKSITE, AND SHALL NOT HINDER ANY RIGHTS UNDER THIS ARTICLE. INVESTIGATION. SUCH INFORMATION PROVIDED I.