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A Maricopa Court Judge Enters An Injunction That Stops The State From Collecting Over A Million Dollars From Flagstaff

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A Maricopa County Superior Court judge entered a preliminary injunction Monday that stops the State of Arizona from collecting $1.1-million dollars from the city of Flagstaff over the city’s minimum wage law. That “assessment” arises out of legislation passed several years ago in direct response to Proposition 414, under which the City’s voters approved a minimum wage that is higher than that of the State at large. In July of this year, the City filed a lawsuit against the State challenging the constitutionality of a recently passed law that, for the first time, authorized an “assessment” against the City in connection with its minimum wage. In a detailed 12-page ruling, the Court held that the City is likely to succeed on its claims that the “assessment” is invalid for two reasons: the State did not impose it in time, and it is made up entirely of “indirect” costs to the State that are improper under HB 2756, because the state is exempt from paying the city’s minimum wage. The court also found that the city established a possibility of irreparable harm because of the effect that paying the “assessment” already had on the City’s budget and its ability to meet the needs of its citizens. There’s no word if the state will appeal the decision or not. Officials say “the city is pleased with this result and will push forward to obtain a permanent injunction.”

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