Arizona Supreme Court to decide on minimum wage lawsuit

PHOENIX (AP) - The Arizona Supreme Court is set to hear a challenge to a minimum wage boost approved by voters.

The Arizona Chamber of Commerce and Industry and other business groups brought the suit to be heard Thursday. The chamber contends Proposition 206 violates a state constitutional provision requiring initiatives to identify a funding source for increased state costs.

The state is exempt, but some agencies expect higher costs for contractors.

Initiative backers and Attorney General Mark Brnovich are defending the law. They say the state isn't compelled to pay the higher costs and a trial court judge agreed.

Proposition 206 was approved by 58 percent of Arizona voters in November. It raised the minimum wage from $8.05 an hour to $10 an hour on Jan. 1 and to $12 in 2020.