Arizona and Massachusetts Reject Tip Credit Measures

Author: Michael Cardman, Brightmine Senior Legal Editor

November 6, 2024

Voters have defeated ballot initiatives that would have changed the minimum wage tip credit in Arizona and Massachusetts.

Arizona Proposition 138 - which would have allowed employers to pay employees up to 25% less than the minimum hourly wage if the employer could establish that the employee's wage plus tips or gratuities is at least $2.00 more than the minimum wage for every hour worked - was roundly rejected by a 25-75 margin, according to unofficial results.

Massachusetts Question 5 - which would have gradually phased out the state's minimum wage credit by 2029 and also have allowed employers to administer tip pools that distribute tips among all workers - was losing by a 36-64 margin at the time of publication, according to the New York Times (Massachusetts does not publish unofficial results).