Business community files lawsuit against Proposition 206, arguing its validity

Posted at 11:31 AM, Dec 15, 2016
and last updated 2016-12-16 10:11:01-05

A number of people in the business community have filed a lawsuit over Proposition 206, arguing that it will negatively affect Arizona’s economy.

Proposition 206 is a ballot measure passed this past November raising the minimum wage and a mandatory paid leave on employers. However, the business community is questioning where the funding will come from, as the bill failed to identify a source.

The group of plaintiffs, composed of the Arizona Chamber of Commerce and Industry, Greater Phoenix Chamber of Commerce, the Tucson Hispanic Chamber of Commerce, Greater Flagstaff Chamber of Commerce, and the proprietors of restaurant Valle Luna and its employees, say Arizona ballot initiatives are required to provide a funding source when the state general fund could be reduced, and say it is unconstitutional to not provide one.

"The organized-labor-affiliated backers of Proposition 206 sloppily constructed their initiative to exempt state employees, yet failed to properly account for those employers who hold state contracts. This failure is poised to a blow a giant hole in the state budget," Arizona Chamber President and CEO Glenn Hamer said.

This initiative could cause several care providers working on contracts to be able to work due to lack of funding.

"Throughout the campaign, the business community argued that Proposition 206's passage would have devastating effects on Arizona's economy," Hamer said. "Unfortunately, those predictions are being proven true. Special interests that want to use Arizona's ballot initiative process to carry out their job-killing agendas should have to play by the rules set out in the state constitution; Proposition 206's backers haven't done so. We are confident that the court will agree with us."

The group believes that the proposition could cause an increase in prices, employers to reduce employee hours, and employers laying off employees; even going as far as to say it could cause businesses to close altogether.

The current plaintiffs expect more groups to join them now that a lawsuit against the measure has been properly filed; plaintiffs are not able to file suit until after all the election results are in.