A bill moving through the state Senate will allow employers to claim a credit if they are in a city that requires a higher minimum wage than the rest of the state.
The state would also deduct that claim from the city’s share of state revenue.
Democratic Sen. Eva Burch of Mesa said the bill undermines the will of the voters, who allowed cities to pay higher rates than the state in 2016.
"It alters the outcome of that decision. I do think the people of Arizona did vote to empower their communities to enact a minimum wage that's right for them," Burch said.
The measure passed the Senate Finance Committee on a party line vote and awaits full chamber action.