River Cities Business Journal: Tourism

Today's News Herald

LAKE HAVASU CITY - The clock is ticking on smokers and some business owners.

Starting on May 1, owners of bars, restaurants and other public places are required to prohibit smoking in their establishments. But sooner than that - Jan. 1 - owners need to give any employees on payroll earning less than $6.75 per hour a raise.

Arizonans said on Tuesday they want smoke-free bars and public places throughout the state, and higher wages for entry-level workers.

Prop 201, which calls for tobacco-free bars and restaurants starting next spring, beat out an alternative measure sponsored by restaurant owners and the tobacco industry. The far-reaching ban passed by a 54-46 percent margin, according to the Arizona Secretary of State.

Several bars in Lake Havasu City already prohibit smoking. Mudsharks Brewery, owned by Scott Stocking, is one of them and has been so since opening years ago.

Stocking called the ban a “win-win,” saying his restaurant and pizzeria kept tobacco out of his establishment to foster cleaner environments.

Asked if he felt the ban now gives those pubs with outdoor patios an advantage, he said: “It has a little bit of an impact. Non-smoking places like Barley Brothers and Martini Bay are already successful. One of the reasons is because they are non-smoking.”

BJ's Tavern and Mad Dog's Bar and Grill both renovated or added outdoor patios over the past 12 months. In Mad Dog's case, manager Thom Felke previously said the establishment recently went smoke-free in part to prepare for the ban's passage.

A separate ballot proposition also affects restaurant and small business owners, but greatly benefits entry-level workers. It raises the state's minimum wage from $5.15 per hour to $6.75 and passed easily with close to two-thirds of voters supporting it.

Sherry Wagoner, the 12-year owner of Sherry's Casuals clothing store, voted for the wage hike. She said support “depends on what side of the counter you are on.”

“It's been so long. It's due and it's time to shell out for it,” Wagoner stated.

The small business owner added that most people start toward the bottom of the income scale and work their way up, but said the extra pay incentive shouldn't hurt.

Stocking said he thought the results on Prop 202 would have been more of a landslide. Pointing to California's $6.75 rate, he added: “It's about time that Arizona caught up.”

Arizona is not alone on the West Coast in offering higher starting wages than the federal minimum of $5.15. Nevada's minimum wage is $6.15 per hour, Oregon's is $7.50, and Washington employers must pay at least $7.63.

Before Prop 202 passed, employers in Arizona needed to comply with the federal minimum of $5.15 per hour, which has not increased since 1997.

Between Mudsharks' Pizzeria and Brewery, Stocking employs more than 30 full-time and 40 part-time residents. Many of them, such as servers and bartenders, earn tips.

Tipped employees are due to earn $3.75 per hour - up from $2.12 - starting in January. They have voters to thank for that as well.

Opponents of the wage increase argued the measure would lead to job cuts and lower profits for small business owners. Stocking said he would be adjusting wage rates in his computer shortly, to make sure compliance is not a future issue.

Any employers found in violation of Prop 202 shall pay the balance of wages earned, plus interest and an amount equal to twice the underpaid wages, according to the legislation. A committee is chartered with enforcing the new minimum wage's provisions, which include requiring businesses to maintain the most recent four years of payroll records. Penalties for violations in this area range from $250 to $1,000.

In a related measure, voters rejected a salary increase for state legislators - the same group that chose not to independently raise the minimum wage.