Proposition 138, a ballot measure in Arizona, is at the center of a debate over the subminimum wage for tipped workers. The measure, backed by state Republicans and the Arizona Restaurant Association, would change the minimum for tipped workers to 25% less than the regular minimum wage, as long as their pay with tips is $2 above that minimum. Supporters argue that this protects both businesses and lower-wage workers, while opponents say it would reduce earnings for workers like bartender Mel Nichols.
In Massachusetts, voters are being asked to eliminate the tiered minimum-wage system and gradually increase the state’s tipped worker wage until it matches the regular minimum wage by 2029. Advocates for One Fair Wage, a nonprofit group, hold that a single minimum wage is fairer and more sustainable for workers. The issue disproportionately affects women, who make up a majority of those in tipped professions.
Other states also have wage measures on the ballot, including California, Alaska, and Missouri. The National Restaurant Association warns of reduced hours, lower employment, and menu price hikes if employers can’t rely on tips to pay their workers. However, labor economist Sylvia Allegretto points out that states with a single minimum wage have seen growth in the restaurant industry. The debate over the subminimum wage continues, with workers like Lindsay Ruck calling for higher base pay to ensure fair compensation.
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