Proposition 138, known as the “Tipped Workers Protection Act,” would change Arizona’s tip credit formula from $3 an hour to 25% of the minimum wage.
The Arizona Restaurant Association backed this measure through the Legislature in response to a separate voter-initiative proposed by One Fair Wage, a national advocacy group made up of restaurant owners and service workers pushing for higher wages and better working conditions, according to co-founder and president, Saru Jayaraman.