The Arizona Supreme Court says it will decide if a minimum wage boost approved by voters violates a state constitutional provision requiring initiatives to identify a funding source for increased state costs.
The high court on Tuesday issued an order formally accepting the case filed by the Arizona Chamber of Commerce and Industry. The court will hold a hearing on March 9.
Proposition 206 was approved by 58 percent of Arizona voters in November. It raised the minimum wages from $8.05 an hour to $10 an hour on Jan. 1 and to $12 in 2020.
The Supreme Court refused to block the increase while it considered whether to accept the lawsuit.
The state is exempt from paying the higher wages, but some agencies expect higher costs to pay contractors.