PHOENIX, AZ - Arizona business leaders are suing to halt Proposition 206, a move that looks to increase the state’s minimum wage to $12 per hour, as well as offer paid sick leave to workers.

Should the strategy fail, the proposition would go into effect in January.

The state’s current minimum wage stands at $8.05 per hour, with state workers being exempt. But, the Phoenix Business Journal reports the plaintiffs argue it will still cost the state money, as it will raise wages for some social service and other contractors doing work for the state.

“The organized-labor-affiliated backers of Proposition 206 sloppily constructed their initiative to exempt state employees, yet failed to properly account for those employers who hold state contracts. This failure is poised to blow a giant hole in the state budget,” said Arizona Chamber of Commerce President and CEO, Glenn Hamer, in a statement, according to the Phoenix Business Journal. “According to a recent rulemaking notice, AHCCCS and the Department of Economic Security are facing millions of dollars in additional costs for the remainder of just this fiscal year.”

According to the news source, the Arizona Chamber of Commerce and Industry is one of the state’s four leading business groups bringing the matter to court. Others participating in the lawsuit are the Greater Phoenix Chamber of Commerce, the Tucson Hispanic Chamber of Commerce, and Greater Flagstaff Chamber of Commerce, as well as the owners of restaurant Valle Luna.

The suit has been filed in Maricopa Superior Court, with the chambers arguing that the proposition goes against state laws that dictate ballot measures must have funding sources if they cost the state money, according to the report.

Despite voters approving Prop 206 58 percent to 42 percent with little public opposition, the chambers are seeking a minimum wage raise of $10 per hour in January and $12 per hour by 2020.

AndNowUKnow will report any updates on the story as they develop.