minimum wage paper

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The paper must conform to our defined standards: 1” borders (all FOUR borders), your name, etc. in the header, 12 point Times New Roman font, double spaced and only one page (a second page is only for references or citations, if needed). Proper spelling, use of grammar, etc. will detract from the paper and therefore have points deducted. Please indent the beginning of your paragraphs rather than using an extra line to separate paragraphs. The grading rubric below is included as a guide in writing your paper.


An important portion of the grade will include discussing the slowdown in the minimum wage in Flagstaff, and how it may impact minimum wage workers. Examples from your personal experiences, a brief discussion of the law, Biff’s Bagel’s, Street Side Saigon’s, and/or Flagstaff Nut House or Flagstaff Soap House’s position, etc. can all be included in your paper. Note that the original Citizen Petitions were how the law was enacted (the state’s minimum wage increase to $10 and Flagstaff’s Citizen Petition, Proposition 414). As in the text, when evaluating price controls, we need balance the principle that markets are usually a good way to organize economic activity with the principle that governments can sometimes improve market outcomes. Prices (wages) have the crucial job of balancing supply and demand, however price controls (a minimum wage) may be used because of an unfair market outcome or may be aimed at helping the poor. Often remember that the price control (minimum wage) may end up hurting those they are trying to help, and that there may be a better way of helping those in need (a wage subsidy).

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Citizens Clash Over Flagstaff Minimum Wage Increase A voter-approved measure that raises the minimum wage to $15 an hour in Flagstaff is deeply dividing the community, placing the city at the center of a national debate over income inequality. Feb. 16, 2017, at 5:08 p.m. Citizens Clash Over Flagstaff Minimum Wage Increase By CLARICE SILBER, Associated Press https://www.usnews.com/news/arizona/articles/2017-02-16/citizens-clash-over-flagstaff-minimumwage-increase PHOENIX (AP) — A voter-approved measure that raises the minimum wage to $15 an hour in Flagstaff is deeply dividing the community, placing the city at the center of a national debate over income inequality. People on both sides of the debate packed a city council meeting Tuesday, where discontent was voiced adamantly from those supporting and opposing the measure. More than 70 people addressed the council, and an overflow room had to be set up to accommodate the large crowd. The council was deciding whether to hold a special election in May on an initiative to repeal the minimum wage increase, Proposition 414. The council voted to wait for the next general election in November 2018. Flagstaff resident Elisha Dorfsmith was among those who attended the meeting, which he described as "emotional and intense." He said his biggest concern about the law is its lack of exemptions that he thinks should apply to entry-level and part-time employees. Dorfsmith said he believes entry-level jobs will eventually dissipate as a result of the law. "It's not even a left or right divide, it's a community divide," Dorfsmith said. "People are just at each other's throats." The law passed by voters in November raises the minimum wage to $12 an hour this year and to $15 an hour by 2021. It goes above and beyond Proposition 206, a statewide ballot measure also approved by voters in November that raises the minimum wage to $10 this year and $12 by 2020. The group Elevate Flagstaff petitioned to amend a local law and keep the city's minimum wage at the state level. Flagstaff city councilmember Jim McCarthy said the council will ask the legal staff to try to make an amendment to delay the implementation of the Flagstaff increase to $12 an hour. "There is a bit of risk in that but I think it's the right course of action," McCarthy said. "Even among the people that support the measure say it's too soon." Supporters of the minimum wage increase cite their hopes of giving lower-paid worker more opportunity in one of Arizona's most expensive real estate areas. James Holeman, who employs seven workers at his cigar and beer store in Flagstaff, acknowledges that a quick increase to $12 an hour will be intense, but says continuing strong support for small local businesses should keep everyone afloat. "Giving some of the working poor a little better chance ... just being fair, I think people have been underpaid for a very long time, Holeman said. Armando Bernasconi, the CEO of Quality Connections, said his nonprofit that assists people with disabilities to find housing and employment is already experiencing negative effects from Proposition 206 within the business and outside it. He expects it will become harder for his organization to find jobs for people if the scheduled increase to $12 an hour takes place this July. "It's greatly impacting the people we serve which are the most vulnerable in our community," Bernasconi said. "It's really disheartening." With Congress unable to agree on an increase in the federal minimum wage of $7.25 an hour, numerous states and cities have taken action on their own. In this election, Arizona, Colorado and Maine voters approved measures phasing in $12 minimum hourly wages by 2020. In Washington state, where the minimum wage is $9.47 an hour, voters approved a measure raising that to $13.50 an hour by 2020. Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. What is Prop 414 Minimum Wage? http://www.flagstaff.az.gov/index.aspx?nid=3520 PROPOSITION NO. 414 - Minimum Wage Act – Establishing a minimum wage for the City of Flagstaff and providing for enforcement and remedies for violations of the City minimum wage, amending Flagstaff City Code by adding Title 15, Labor, Chapter 1, Minimum Wage. Employers shall pay employees no less than the minimum wage, which shall be not less than: 1. $10 an hour or $2 above the state minimum wage as provided for under Section 23-363, Arizona Revised Statutes, whichever is greater, on and after July 1, 2017; 2. $11 an hour or $2 above the state minimum wage as provided for under Section 23-363, Arizona Revised Statutes, whichever is greater, on and after January 1, 2018; 3. $12 an hour or $2 above the state minimum wage as provided for under Section 23-363, Arizona Revised Statutes, whichever is greater, on and after January 1, 2019; 4. $13 an hour or $2 above the state minimum wage as provided for under Section 23-363, Arizona Revised Statutes, whichever is greater, on and after January 1, 2020; 5. $15 an hour or $2 above the state minimum wage as provided for under Section 23-363, Arizona Revised Statutes, whichever is greater, on and after January 1, 2021. Read November 8, 2016 Information Pamphlet Summary & Status • Proposition 414 was a citizen's initiative • On November 8, 2016 City of Flagstaff voters approved and passed initiative 414 – Initiative for a Living Wage - voting YES 14,913 (53.99%) and NO of 12,710 (46.01%) • A citizen petition to amend the initiative has been received. In accordance with the law the City Clerk has 20 business days to check the petitions for completeness followed by a verification of signatures by the County Recorder. • If sufficient signatures are verified by the County Recorder, it will be placed on a future City Council agenda for the council to consider whether or not it would like to hold a special election on May 16, 2017. If the Council chooses to not call a special meeting it will be placed on the ballot in November 2018. • The City Council Meeting on January 17, 2017 will have a discussion item on the agenda regarding Minimum Wage changes. • The City Council Budget Retreat will have an agenda item at 11:55 regarding the Prop 414 impacts to the City of Flagstaff organization. • The City Council has limited ability under the law to affect these initiatives. • The Minimum Wage Special Election will be decided by Council following the County Recorder's Office petition signature validation process scheduled to be completed by February 9, 2017. The City Council meeting date with an agenda item on the minimum wage has not yet been confirmed. • The Flagstaff City Council will meet on Tuesday, February 14, 2017 at 6pm for a Special Meeting to consider potential options regarding the minimum wage. The public is invited to attend the meeting in the City Hall Council Chambers located at 211 W. Aspen Ave. Agendas and live streaming of the meeting is available on the City Website. What Action Can The City of Flagstaff City Council Do Legally? Question: Can the City Council repeal or overturn an adopted voter initiative? Answer: No Question: Can the City Council amend an adopted voter initiative? Answer: No, unless by supermajority and it furthers the initiative’s purposes Question: Can voters repeal or remove an adopted voter initiative? Answer: Yes, through the same voter initiative process Question: When does an adopted voter initiative become effective? Answer: Upon approval of the voters and proclamation by the Mayor Applicable Points under the Arizona Constitution Article 4, Section 1(1) and (8) of the Arizona Constitution (the Constitution) reserves power to voters to pass new laws. Under the Constitution, Article 4, Section 1(14) a voter initiative approved by a majority of the voters cannot be repealed or overturned by the City Council. Article 4, Section 1(6)(C) and 1(14) of the Arizona Constitution requires any amendment to further the purposes of the initiative and be approved by a supermajority of the City Council. Article 4, Section 1 of the Arizona Constitution allows voters to propose and approve any initiative that repeals or removes law created by a previous initiative. Article 4, Section 1(5) and (13) and Arizona Revised Statutes, Section 19-126 indicate that a voter initiative becomes effected as stated in the initiative, upon approval of the voters and proclamation of the Mayor. Updated: Flagstaff City Council passes amendment to minimum wage Posted: Wednesday, March 22, 2017 12:09 am Scott Sandon http://www.jackcentral.org/news/updated-flagstaff-city-council-passes-amendmentto-minimum-wage/article_869d66fa-0ece-11e7-b23a-eb96ce0b4141.html Flagstaff City Councilmember Charlie Odegaard was the singular vote against the city’s minimum wage amendment, as it passed 6-1 March 21. Odegaard entered the chamber four minutes late for the city council meeting. Flagstaff voters passed Proposition 414 by 54 percent in November 2016, which planned to raise the minimum wage in the city to $15 an hour by 2021. Proposition 414 would have changed the minimum wage to $12 an hour July 1. The November election also saw Arizona’s state minimum wage increase to $10 per hour with the passing of Proposition 206. Feb. 14, Flagstaff City Council voted to draft an amendment to Proposition 414 that would increase the minimum wage by smaller amounts, starting with a raise to $10.50 an hour July 1. The amendment would also increase the city’s final minimum wage to $15.50 an hour by 2022 instead of $15 by 2021. In the Flagstaff City Council meeting Mar. 7, it appeared as though Odegaard, who was undecided on the amendment, would cast the deciding vote during the March 21 meeting. One of the concerns Odegaard voiced in previous meetings regarding the amendment was the possibility that it may violate Arizona’s Voter Protection Act. The Arizona Voter Protection Act is an amendment to the Arizona Constitution that requires “three-fourths [of a legislative body] to amend measure, to supersede measure, or to transfer funds designated by the measure, and only if each furthers the purpose of the measure.” First, members of the public were invited to speak on the amendment. Members of the city’s disabled community spoke several times, urging the council to approve the amendment. “My life has not always been easy. And now that I’m doing well, moving and having to make these changes because of [Proposition] 414 would not be good for me,” Nathan Martinez, a member of the city’s disabled community and a Sam’s Club employee, said. Non-profits and small businesses have voiced concern over Proposition 414. Non-profits like CPES, that provide services for the developmentally disabled, may not be able to stay open in Flagstaff if they were required to raise their wages. This would force residents like Martinez to move to cities where these services can be provided. Paul Deesy, from the group Bridging Flagstaff, also spoke. Deesy revealed that Bridging Flagstaff had filed to become a Political Action Committee (PAC) in the previous week. “[Bridging Flagstaff] are intent on crafting an alternative initiative that resolves these issues and embodies the voice of the people,” Deesy said. A voter initiative from Bridging Flagstaff would stand as an alternative to the initiative proposed by Elevate Flagstaff, both of which aim to amend the wage hike proposed by Proposition 414. The discussion then turned to the council. Odegaard was the first councilmember of the night to discuss the amendment. As he spoke, his hands were visibly shaking. “I’ll start off since all eyes are kind of looking at me anyways,” said Odegaard. Odegaard announced that he would be voting against the amendment, which led many to believe the amendment’s failure was assured, since he was the swing vote in the previous meeting. Councilmember Eva Putzova motioned to postpone the vote until May 23, which would allow the council more time to consider the legality of the amendment. The motion was seconded by councilmember Jim McCarthy. Putzova withdrew the motion and proposed instead to postpone the vote until May 16. The motion was defeated in a 5-2 vote after the condemnation of the public and other councilmembers. Putzova has previously been asked to recuse herself on Proposition 414 due to her husband’s involvement in writing the proposition. One of her comments at the March 21 meeting offended several members of the audience. “The voices we are not hearing from are the workers. And that’s because the workers are either working or afraid,” Putzova said. Councilmembers eventually voted on the amendment at approximately 7:30 p.m., with councilmember Scott Overton changing his vote from a confident ‘no’ to a reluctant ‘yes.’ Odegaard was the only councilmember to vote against the amendment despite him being the swing vote in the previous meeting. The 6-1 vote fulfilled the legislative criteria of the threefourths vote known as a supermajority, thus passing the amendment. “The advice we received from our attorney [inspired his decision to vote no],” said Odegaard. Overton switched from a vote against the amendment to one in favor of it, which surprised many and was enough to pass the amendment regardless of Odegaard’s vote against. The results of the vote pleased many Flagstaff residents who were present at the meeting stood and applauded when the results of the six to one decision were announced. Fear and hope: Flagstaff residents consider future with new $15 per hour minimum wage Downtown Flagstaff near San Francisco Street and Aspen Avenue. Business owners, workers and other residents are divided over a minimum wage hike to $12 an hour in July. (Photo by Jessica Clark/ Cronkite News). By Saundra Wilson | Cronkite News Friday, March 3, 2017 FLAGSTAFF – The scent of freshly popped kettle corn, laced with syrup and buttery caramel, wafts through Flagstaff Nut House in Flagstaff’s downtown. The co-owner said business at the shop is not so sweet. Nizar Olabi let minimum-wage workers go, cut the store hours to Thursday through Sunday and will raise prices on popcorn, ice cream and other treats. He’s worried about Flagstaff’s new minimum-wage law, which will raise the city’s minimum wage to $12 in July and increases it every year until it reaches $15 an hour by January 2021. “I think, overall, it hurts the economy,” said Olabi, a doctor who opened the store as a side business. “It makes it harder for us to stay in business.” The wage is deliberately higher than the new, controversial state minimum, which brought the wages up to $10 an hour in January. In Flagstaff, known for its progressive politics, state university and tourism, the new wage has ignited emotional and economic conflicts. More than 70 people spent their Valentine’s Day evening sharing diverging thoughts about the proposition at a city council meeting where the council ultimately rejected a proposal to hold a special election in May. The special election would have allowed Flagstaff voters to vote on a measure to reverse or alter many of the provisions in Proposition 414. Some businesses that opposed the higher wage increase have been boycotted, according to a leader of the Greater Flagstaff Chamber of Commerce. But other business leaders and residents support the wage increase as a way to support, attract and keep workers, some saying a raise is long overdue. Four months after voters approved Prop 414 in the November general election, business owners, employees, public officials and other residents continue to wrestle with the vote. The city council is expected to take up the issue again Tuesday, when council members will consider a measure that would slow the phase-in of the wage increase but still hit $15 an hour by 2021. “The community is divided,” said Armando Bernasconi, chief executive of a local nonprofit that helps people with disabilities find employment in the city. “It’s a really sad thing to see.” Nizar Olabi, co-owner of Flagstaff Nut House, said the minimum wage increase will force his business to increase prices on popcorn and other sweet treats. (Photo by Jessica Clark/ Cronkite News). New year, new wages The Flagstaff Soap Company, a locally owned shop that sells natural, handcrafted soap and skincare products, is down the street and an opinion away from Olabi. The Soap Company owner supports the increased minimum wage and plans to hire new workers soon, shop manager Bobbi Wilson said. Wilson expects a slight increase in prices for goods and services in Flagstaff but believes customers and businesses can accommodate the change. “I’m happy to pay an extra 25 cents for a cup of coffee in order for the people working there and making that coffee to make a fair and livable wage,” Wilson said. Gerardo Alvarado, who spoke through a Spanish-language translator before the city council, said all Flagstaff residents share responsibility to provide workers a living wage. Alvarado said he is a construction worker and gets paid higher than the minimum wage but knows people who have to work two or three jobs to get by. “If my wage needs to go down so that actually my community earns more money, I would do it in a second,” Alvarado said. “They say that Flagstaff is a really good place to live and raise your children but the question is, who is that for?” Opponents: Too far, too fast Prop 414 passed 54 percent to 46 percent, according to election records. Voters approved the local proposition alongside state Proposition 206, another controversial measure that boosted the minimum wage to $10 an hour in Arizona in January. The state minimum wage would gradually increase every year to $12 an hour by 2020 and in later years be adjusted for inflation. Flagstaff’s Prop 414 requires the city minimum wage always be $2 above the state standard. It also increases wages for workers who receive a substantial portion of their wages through tips. The city’s minimum wage will jump nearly 50 percent over six months, from $8.05 per hour last year to $12 an hour in July. Those who are opposed to the law said the increase is too fast to be sustained and fear it will drive small businesses beyond their limits. “The money has to come from somewhere,” said Stuart McDaniel, vice president of governmental affairs for the Greater Flagstaff Chamber of Commerce. The chamber joined forces with Elevate Flagstaff, a group of local businesses that gathered more than 8,000 signatures on a petition to hold a special election in May. They called their alternative to Prop 414 the Sustainable Wages Act, requiring Flagstaff adopt the state minimum wage. At the packed city meeting on Valentine’s Day, the Flagstaff city council turned down the request for a special election by a 5-2 vote, siding with people who said it would reverse the will of the voters who approved Prop 414. But the council plans to place a provision on the ballot in the November 2018 general election. “The democratic process took place,” said Olabi, who signed Elevate Flagstaff’s petition. “It was completely ignored.” Some say the proposition hurts a sector that is known for giving back: Flagstaff non-profit organizations. “Prop 414 basically ignores the disabled population,” said Bernasconi, the CEO of Quality Connections, a local nonprofit that provides job training and assistance for people with disabilities. OPPOSES PROP 414 Stuart McDaniel, Flagstaff Chamber of Commerce McDaniel, the chamber’s vice president for governmental affairs, said the city’s minimum-wage increase could lead to higher prices, business closures and the “snowball effect” of increased costs to run a business. “Good intentions don’t override the laws of economics,” he said. (Photo by Jessica Clark/ Cronkite News) Bernasconi said 15 clients have already lost their jobs or had their work hours cut. “These are jobs that our guys have been searching for years to find,” Bernasconi said. “They found them and now they’re losing them again. McDaniel shared Bernasconi’s concern. “The very people that it’s designed to help are actually the ones being hurt the most,” McDaniel said. McDaniel anticipates increased prices, business closures, and what he calls a “snowball effect” of increased costs. “Good intentions don’t override the laws of economics,” he said. Supporters: wages that work Advocates for the proposition said workers have struggled with a higher cost of living than they can afford and deserve more money in their pockets. “I think we have a more stable economy when we have a greater percentage of our population who can afford just basic needs,” Wilson said. She said she’s seen her friends wrestle with affordability in Flagstaff. Two Flagstaff students are especially excited to see the gains. “It definitely helps because I don’t have to work as much and I can focus on school,” said Isabel Lara, a server at Red Curry Vegan Kitchen and student at Coconino Community College. Lara said the jump in January came as a surprise, but has helped her to continue to pay her rent, despite the decrease in tips during the slower winter months. She plans to save the extra money for school and a “nice little cushion” for herself “in case something happens.” Alex Bentley, a computer science student at Northern Arizona University who works at the Pita Pit in downtown Flagstaff, said he scrambles to pay rent. He recently got a second job. “It’s helping me out a lot as a young person, so people who have kids and stuff working minimum wage jobs, it’s probably huge for them,” Bentley said. Jim Taylor, a freelance writer and member of the Flagstaff Living Wage Coalition, advocated for Prop 414, hanging fliers on doors and calling and texting potential voters. Taylor said the coalition knew voters would support a higher minimum wage. “It’s really a moral argument,” Taylor said. “It’s just the right thing to do.” Wage increases working out for some Flagstaff businesses CORINA VANEK AND EMERY COWAN Sun Staff Reporter Mar 7, 2017 http://azdailysun.com/news/local/wage-increases-working-out-forsome-flagstaff-businesses/article_00f5e450-7338-54f3-9e56-504d03bb70ef.html As Flagstaff residents look toward city council action on an amendment to the city’s minimum wage law that would stave off the $12 wage on July 1, local business owners are trying out various tactics to cope with increasing labor costs. The state minimum wage hit $10 an hour on Jan. 1. Mike Funk, the owner of Firecreek Coffee Company, sees the wage increase as a positive influence, and has even chosen to bump his employees' pay above the new $10-per-hour that is the state minimum. “We felt we needed to set an example,” Funk said. “We are increasing our prices but we are paying our employees a fair wage.” At the Flagstaff location, Funk employs about 20 people who work an average of 35 hours per week. With tips, most of his workers already take home more than $12 an hour, Funk said. “The minimum wage increase does affect us, but we have always been trying to pay workers more,” he said. Funk recognizes that Firecreek does not compete on prices, and said customers in the café are already willing to pay more money for a product that they think is worth the higher cost. “We’ve always tried to do something special,” Funk said. “That’s why we have smaller portions and are more expensive.” Funk also gave employees of more than a year “small, symbolic raises,” even though they were already earning more than $10 an hour, which is the state's new minimum wage. So far, the feedback on his price increases has been overwhelmingly positive, Funk said. “It’s nice to see people are putting their money where their vote is," he said. As for effects to his bottom line, Funk said he tries to operate his business on a 10 percent profit margin, though right now that number is closer to 5 or 6 percent. He said he plans to continuously raise prices as the minimum wage increases, though future jumps will likely be smaller. “I get concerned that all the chains will be OK,” he said. “They aren’t paying someone to make ketchup like one of my favorite local restaurants is.” Funk said the increase in the tipped minimum wage is also worrisome to him because many tipped workers are already taking home much more than the minimum wage. “Why make the restaurateur pay triple if they are already paying a sustainable wage plus tips?” Funk asked. “A lot of restauranteurs aren’t going to have the extra money.” He acknowledged that the current increase schedule has been a hard swallow for many businesses. “The sad thing is, probably a lot will go out of business,” he said. • BIFF’S BAGELS Biff’s Bagels has similarly seen a positive response to the 15 percent price increase it implemented in January, manager Felicia Cruze said. “We haven’t lost business over it at all,” she said. The 15 percent will cover what it costs to move employees up to $12 an hour to comply with both the state and city minimum wage increases this year, Cruze said. Only three of the bagel shop’s 11 employees were making less than $12 an hour, so the change won’t have a huge effect on the business’s labor costs, Cruze said. And with the raise, the owners made it clear they are expecting more of employees, she said. “We had to explain with us going to $12 that you needed to be aware that you need to be a $12 employee,” she said. STREETSIDE SAIGON Like the owners of Biff’s Bagels, Hoa Truong, the owner of Street Side Saigon, was a supporter of Prop. 414 during the election. Truong said he believes a person that works 40 hours a week should be able to afford the necessities, like rent or a mortgage, food, utilities and basic healthcare. Most employees at Street Side Saigon were already making about $10 an hour, Truong said, but in January when the state minimum was increased, he bumped up their wages as well to combat wage compression. “It’s not fair for a person who has been here for two years to be making the same as someone who just started,” he said. While Truong has not had to raise his prices yet, he said he did stop running some specials in the restaurant, and does plan to reprint the menu with new prices in July when the city’s minimum wage is scheduled to reach $12 an hour. “I hope my customers will understand,” he said. Like Funk, he said he plans to post a notice about raising prices, but said he is “not writing the note begrudgingly” because he does support paying employees more. Truong said his personal worldview, separate from his business, made him favor the higher wages because he would like to see an increase in the quality of life in the city. Truong also said he can see other local businesses feeling pressure under the increase, and said many acquaintances of his have expressed worry. “I understand the degree of allergy some businesses have to these types of things,” he said. But Truong came back to his belief that the argument to keep prices and the minimum wage low puts servers in an undervalued position. NOT SO EASY Another local restaurant owner who did not want to be named raised his prices 16 percent to cover the approximately 10 percent increase in monthly payroll he has seen since the state minimum wage increase, as well as expected cost increases under the city’s July $12 minimum wage. Like Truong, the restaurant owner bumped up the hourly pay of all of his employees, even the ones that were making more than $10 an hour. Tipped servers were bumped from $5.05 an hour to $7.05 an hour, according to state law. He hasn’t laid anyone off yet but he has cut his employees’ hours by 5 percent to 7 percent. Additionally, his local distributor’s food prices have gone up 4 percent to 5 percent, he said. The big question mark is in how the restaurant's customers will respond to $1 and $2 increases in menu item prices. “As long as I don't lose customer counts, everything will work itself out,” the restaurant owner said. WARNER’S NURSERY For Misti Warner, the owner of Warner's Nursery and Landscaping, the state and impending local minimum wage increases haven’t been as easy to absorb. The business will be reducing the number of seasonal employees it hires by at least one third and up to one half, depending on what happens with the Flagstaff minimum wage increase, Warner said. Those employees have tended to be high school and college students and most would have started at wages well below $12 an hour, she said. Warner is also cross-training many seasonal employees so they can do more in the hours they work — man a cash register as well as tend to plant beds, for example. In general, employees will have less of an opportunity to get a pay raise, though, because the starting bar has been moved up to the point that she can’t afford the additional payroll costs, Warner said. She said she's also worried that without enough seasonal employees, her more knowledgeable sales staff will get stuck doing manual labor and won’t have as much time to interact with customers, which will affect overall service levels. Along the same lines, she has had to reduce the inventory of plants that she will keep on hand because she won’t have as much labor needed to move and care for them, Warner said. On the landscaping side of the business, Warner’s has already had to let go of one of its crews, though the larger economic climate also played a role in that decision, Warner said. The business is also considering moving the landscaping division outside city limits so they can avoid the city minimum wage and be more competitive with non-Flagstaff companies when bidding for jobs, she said. In other areas of the business, Warner’s cut its advertising budget and had to scrap what are usually annual donations to hospice organizations, the American Cancer Society and the Flagstaff Arboretum, she said. “We’re just going to keep going, we’ve been here for many, many years and survived because of this community,” Warner said. “We’re just going to have to be really smart.” But Warner says a jump to $12 in July would be hard. "$12 could make us feel we’re not supported by the community," Warner said. "We’re feeling like all of the burden is being put on businesses," she said. "It's expensive to live in Flagstaff but it's also expensive to run a business in Flagstaff and I don’ think that is being put out there."
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Running head: MINIMUM WAGE

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Minimum Wage
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Institution

MINIMUM WAGE

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Minimum Wage

The debate on whether the minimum wage increase is beneficial or hurts the economy
and employees as well is endless. Proposition 414 in Flagstaff provides an increase of minimum
wage from $10 per hour to $12 and up to $15 by 2021 (Sandon, 2017). The positive effects of
increasing the minimum wage include the betterment of lives. Flagstaff Nut House had to lay off
some employees and cut down the operation hours as an impact of increasing the minimum
wage. As Nizar Olabi says, it may end up hurting those who it is suppos...

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