Friday, January 12, 2007

Opinion from AG's Office Requested re: Minimum Wage

Proposition 202 became effective on the first day of the year, and it remains current, valid law (See section 23-363, subsection A, $6.75/hour beginning 1/1/2007).
However, there are many questions surrounding the applicability of the new law.


An opinion from the Attorney General's Office has been requested and is expected to answer the following specific questions:

Will you issue an opinion that responds to the following questions?

Does the new minimum wage law apply to the developmentally disabled workers or is the "special" minimum wage authorized by Section 14(C) of the Fair Labor Standards Act still applicable?

Are there any other federal exemptions that are still in effect, if so, which ones?

The official title of Proposition 202 contained a phrase alluding to the repeal of §23-362, Arizona Revised Statutes, however, the text of the measure contains no such repeal, does this mean that the old statute was not repealed?

If you determine that the old law was not properly repealed, and since the new law contains no express provision for workers with disabilities, can employers still pay "commensurate" wages in accord to the reference to federal law found in the old § 23-362, Arizona Revised Statutes?

Additionally, the Industrial Commission, the entity charged with oversight and rule making associated with the new wage, issued a press release on December 26, 2006 that included the following statement, highlighted in red:

MINIMUM WAGE LAW ON DEVELOPMENTALLY DISABLED, PHYSICALLY-CHALLENGED WORKER PROGRAMS
(Phoenix, AZ) - The Industrial Commission of Arizona (ICA), the agency responsible for implementing changes to Arizona's new voter-approved minimum wage law, is advising employers who participate in special work programs for the disabled to proceed as usual until the agency is able to address concerns about how the new law will apply in these cases. Approved by voters last month, Proposition 202 raises the minimum wage in Arizona to $6.75 an hour beginning January 1st, 2007.


Last week, Arizona employers exempt from minimum wage standards for developmentally- or physically-challenged workers through approved "sheltered work center" programs and community members raised questions about the law. Because the ICA will still be in the process of gathering information from the both the community and employers on the effective date, employers who participate in sheltered work center programs will not be penalized for not paying the new wage. They are being advised to follow current procedure until an advisory opinion can be issued.

We remain in contact with the Solicitor General's Office and hope that an opinion will be issued soon.

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