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The Arizona Republic has reported that directors of the MARC Center in Mesa, AZ have been advised by their lawyers that they cannot continue to pay their workers less than the new minimum wage increase of $6.75. The MARC Center of Mesa is a private not-for-profit corporation, provides educational, therapeutic, rehabilitation and social services to children and adults with developmental, physical and mental disabilities. Some of the workers they employ have an IQ of less than 30.
This past November, Arizona voters passed Proposition 202, which increased the minimum wage from $5.25 to $6.75 with an annual increase for inflation. Voters passed this proposition with an overwhelming vote; however, the consequences of their actions have just begun. Companies that employ disabled individuals, such as the MARC Center and Goodwill, cannot afford to pay their employees this new increase. These are not the only companies that will struggle with employee funding. Other companies that pay their employees the current minimum wage will be forced to increase their prices and layoff many employees.
The problem stems from voters being completely unaware of their good intentions. While it seems like a minimum wage increase will be beneficial to many people, consequences that were never addressed or ignored will surface eventually. One reason I did not support this minimum wage increase was because I knew that raising minimum wage would actually harm many people who do make minimum wage. When a business cannot afford such an increase, they are forced to compensate by firing people who may not be as productive. This is why we see a threat to disabled persons’ employment. Other groups to get laid off will include teenagers and people who have less work skills. Businesses are not trying to discriminate against these particular types of people, but when it comes to paying your employees a higher wage, they want to make sure this wage will pay for a certain skill level. And many businesses cannot afford to keep many of their employees.
Sometimes I hate it when I’m right, especially when no one listens to the facts regarding a particular issue. The people who supported this proposition may have had good intentions, but they failed to listen to the potential consequences. Even if a proposition seems positive in every way, don’t forget to question your position. Sometimes the only way to see what will be the best for people is to play devil’s advocate with yourself.
The Governor of Arizona will discuss this matter with the legislature next month. Lawmakers would need three-fourths majority of overturn this proposition, unfortunately, the legislature may not have the authority to change the initiative’s language.