Alia Beard Rau

The Republic | azcentral.com

Hundreds of thousands of Arizonans will get a raise Jan. 1. Arizona voters have approved Proposition 206 to boost the state's minimum wage and to require employers to provide paid sick time.

Prop. 206, also called the Healthy Working Families Initiative, proposed raising the state's current $8.05 per hour minimum wage during the next several years to:

$10 per hour in January.

$10.50 in 2018.

$11 in 2019.

$12 in 2020.

Starting in 2021, the minimum wage would be adjusted annually based on cost of living.

Employees who receive tip income can continue to earn $3 an hour less than the minimum wage if their employer can prove the employee is earning at or more than the minimum wage when tips are counted.

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Employers with fewer than 15 employees must provide each worker 24 hours of paid sick time a year. Employers with 15 or more employees must provide each worker at least 40 hours a year. Prop. 206 also defined the conditions under which paid sick time could be used, including physical or mental illness, to care for a family member, a public-health emergency, domestic violence, sexual violence or stalking.

James Neal, 65, of Tempe, was among the voters who supported Prop. 206.

“Working people need a livable wage. You can’t get by on minimum wage,” he said. “You could work two or three jobs at minimum wage and still not make enough to support your family.”

Neal said he doesn’t believe the proposal goes far enough. He said he would have liked to see it pushed to $15 an hour immediately.

“But it’s better than nothing,” he said.

Unions, education groups and about 200 local small businesses supported the measure, saying it would be better for their employees and the community as a whole. They say better wages and benefits lead to healthier employees and healthier families. They believe more money in employees' pockets would equate to more money spent in their businesses, boosting the state's economy. The current minimum wage equates to about $17,000 a year. Both local and national groups put about $1.6 million into the campaign to support Prop. 206.

Tomas Robles, campaign manager for the Yes on 206 campaign, said he was proud of how hard families and youth worked to get the measure passed.

"It shows all Arizonans care about our families," he said.

The state's most influential business organizations, representing large corporations, small businesses and restaurants, opposed it. They argued the increased wages would be disastrous for the local economy, forcing businesses to close, eliminating entry-level jobs and raising the prices of goods and services. Opposition groups did not invest any money in fighting Prop. 206.

An independent analysis by the Grand Canyon Institute estimated that the increase to $10 an hour would affect about 650,000 Arizonans. The $12 increase would impact 800,000 workers, according to the analysis. The analysis also predicted the wage increases would result in higher prices and could lead to the loss of some jobs.

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