Just three days after hearing oral argument, in a one paragraph Order, the Arizona Supreme Court unanimously rejected the challenge by a cadre of business interests to the constitutionality of Proposition 206. That proposition increases the minimum wage in a series of steps and requires most Arizona employees to provide employees with paid sick leave beginning July 1, 2017. The Court said that it will issue a written opinion explaining its decision.
The plaintiffs had sought to enjoin the implementation of Proposition 206. With the injunction denied, and the Supreme Court’s rejection of the Revenue Source Rule argument, plaintiffs must decide whether to pursue the other claims in their lawsuit.