Glendale residents will have the opportunity to decide whether or not to raise minimum wage and benefits for hotel and event workers this November. The Hotel and Event Center Minimum Wage Protection Act, proposed and funded by the Worker Political Action Committee, will be on the ballot this year and while it seems to stem from good intentions, a report from the Common Sense Institute of Arizona says it could have detrimental economic impacts.
The initiative not only states that hotel and event centers workers must earn a minimum of $20 per hour, but it would also set a limitation on the amount of square feet a room attendant is required to clean before the employer must pay twice the hourly wage, it would require employers to distribute service charges to the employees who performed those services and lastly, the city of Glendale would be required to enforce these rules.
Arizona’s minimum wage is $14.35 per hour and the average hourly rate for hotel and event center employees is $17.02 in 2023.
“To fulfill its obligations under the Ordinance, CSI estimates that Glendale may need to add 5-10 full-time equivalent positions, depending on the volume of new work created by these requirements,” reads the CSI report. “That would require the city to incur a cost of between $995,000 and $1.9 million annually, given comparable per-employee costs at the state Industrial Commission.”
Not only would it cost the city money, it could completely derail Glendale’s highest form of income – tourism and events, which contributes $20 billion to Arizona’s economy.
