Arizona Minimum Wage, Proposition 202 (2006)

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Arizona Proposition 202, also known as the Arizona Minimum Wage Act was on the November 7, 2006 election ballot in Arizona as an initiated state statute. It was approved.[1]

Election results

Minimum Wage
Approveda Yes 987,347 65.4%
Election results from Arizona Elections Department.

Text of measure

Ballot language

The language that appeared on the ballot:


Analysis by Legislative Council

Based on the federal law, the current minimum wage in Arizona is $5.15 per hour.

Proposition 202 would establish a state minimum wage law and raise the minimum wage to $6.75 per hour beginning January 1, 2007. The state minimum wage would be increased each January 1 for changes in the cost of living.

The new state minimum wage law would apply to all employers except:

1. Any person who is employed by a parent or a sibling.

2. A person who is employed performing babysitting services in the employer's home on a casual basis.

3. Employees who regularly receive tips and who are otherwise exempt under federal minimum wage law.

4. The State of Arizona government. But political subdivisions of this state would have to comply with the state minimum wage law.

5. The United States government.

6. A business that has less than $500,000 in gross annual revenue and that is exempt from having to pay a minimum wage under federal law.

Proposition 202 also contains employer notice and record keeping requirements and enforcement and civil penalty provisions. The Legislature, a county, a city or a town may enact a law providing for a higher minimum wage than established by this proposition.[2]

Fiscal Impact Statement


State law requires the Joint Legislative Budget Committee (JLBC) Staff to prepare a summary of the fiscal impact of certain ballot measures. The State may receive additional revenues in the form of civil penalties from violators of the provisions of Proposition 202. The state Industrial Commission will have responsibility to enforce these provisions. The civil penalties may be retained by the agency that recovered them and used to finance enforcement of the proposition. The total amount of civil penalties will depend on the level of compliance, which is difficult to predict in advance.

An increase in wages may also have an economic impact on state and local revenue collections and state spending. By increasing wages and business costs, the proposition may affect individual income tax, corporate income tax and sale tax collections. In addition, a minimum wage increase may affect participation in, and the cost of, public assistance programs. It is difficult to predict the impacts of the proposition on either state revenues or spending in advance.[2]

Campaign finance

Donors to the campaign for the measure:[3]

  • CPC Arizona Minimum Wage Fund I-13-2006: $706,176
  • in Support of I-13-2006: $658,452
  • Womens Voices Women Vote Action Fund Arizona-Support Proposition 202 I-13-2006: $26,456
  • Total: $1,391,084

Donors to the campaign against the measure:

  • No on 202 Opposed to I-13-2006: $1,106,064
  • Total: $1,106,064
  • Overall Total: $2,497,148

See also

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