/ Modified dec 15, 2016 2:24 p.m.

Arizona Chamber Sues to Block Minimum Wage Increase

Suit says voter-approved Proposition 206 doesn't identify a source for state costs.

Arizona Economy Stock

PHOENIX — The Arizona Chamber of Commerce and other groups have sued to try to block a new voter-approved measure that increases the state's minimum wage.

The lawsuit filed Thursday challenges the law, which takes effect next month, because it fails to identify a funding source for increased state costs.

Proposition 206 exempts the state of Arizona, but the lawsuit argues the state remains on the hook for increased costs of its contractors so the state Constitution requires a revenue source.

The initiative raises minimum wage in the state from the current $8.05 to $10 in January. It then increases incrementally to $12 by 2020. The Arizona Chamber of Commerce argued earlier this year that this is too much.

The suit also says a separate paid-sick-time provision violates a constitutional provision that only a single subject can be addressed in a constitutional amendment.

The lawsuit names the state of Arizona, but the group backing the initiative expects to defend it. The group's attorney says both claims are without merit.

AZPM staff contributed reporting to this story

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