Proposition 138, also known as “The Tipped Workers Protection Act”, is a measure on the 2024 ballot that would change the current minimum wage requirements for tipped workers in Arizona. Currently, employers can pay any staff that receives tips up to $3 less than the minimum wage, which will sit at $14.70 come January. If this proposition passes however, in 2025 businesses will be able to pay employees 25% less than the minimum wage which would total to around $11.03 according to the Arizona Legislation.This proposition is highly controversial, with strong opinions coming from either side.

One such outspoken organization in support of the measure is the Arizona Restaurant Association. Dan Bogert, the Chief Operations Officer for the association, says that this proposition will benefit all parties involved with the operation of a restaurant; the business, the servers and the consumer.

“They (Restaurants) get a stable, easy to understand set of regulations when it comes to labor law… on the server’s side, it protects durability to retain the tips that they earn … the big thing it does for consumers is that it protects them from having to pay those service charges,” Bogert said. He said that without the tip credit model, restaurants will default to using automatic gratuity and service charges, which will require the consumer to pay taxes on them.

On the other hand there has been a large amount of criticism levied against the proposition in regards to its content and phrasing. The organizations spearheading this are One Fair Wage and Raise The Wage Arizona, and they are claiming that other groups are aiming to mislead voters.  Jim Barton, an attorney who represents Raise The Wage Arizona, says that the act is unfair to one of Arizona’s most important sectors of the workforce.

“138 cuts servers wages. That's it. That's the only thing it does,” Barton said. “And the signs all over town that say it's tipped workers protection is a lie.” Raise The Wage Arizona has been prolific in trying to prevent this measure from appearing on the 2024 ballot using citizen signatures and advocacy to no avail.

Within the industry, many servers and bartenders are concerned about the implications of Prop 138 if it passes this fall. Much of the criticism falls less with the decreased wages, but with the existing perceptions of tipped workers. David Muhlstein, the bar manager for the Captain’s Cabin in Phoenix, expressed his concern for the precedent it was setting for companies to take advantage of their workers.

“We are underpaid and overworked,” Muhlstein said. “A lot of us work really hard and really ride or die for some of these companies and businesses and I think that it's a small gesture to show that you appreciate us because you can get so much loyalty out of us.” Muhlstein said that most workers won’t necessarily feel the wage decrease, but rather the lack of concern from the employer to pay a livable wage to their workers.