Voters in California have rejected a ballot measure that would have raised the state minimum wage to $18 per hour by 2026, making it the highest in the country. The opposition, led by the California Chamber of Commerce, argued that the proposed increase would have resulted in higher costs, increased taxes, and potential job cuts by businesses.
The California Chamber of Commerce's president and CEO noted that the message about economic concerns seemed to resonate with voters, especially given the current economic climate. On the other hand, proponents of the measure estimated that approximately 2 million workers, including those in the hotel and grocery sectors, would have benefited from the wage hike.
Despite the defeat of Proposition 32, which aimed to raise the minimum wage, some expressed disappointment. The president of UFCW 770, a union representing thousands of workers in Southern California, emphasized the importance of ensuring that all workers earn enough to support their families.
Currently, the minimum wage in California stands at $16 per hour for most workers, with a higher rate of $20 per hour in the fast-food sector. A law signed by Governor Gavin Newsom last year has set the minimum wage in the healthcare sector to eventually reach $25 per hour, with the law taking effect in October.
While California's proposed $18 minimum wage did not pass, Hawaii has passed a law to gradually increase its statewide minimum wage to $18 an hour by 2028. California had previously set a milestone in 2016 by becoming the first state to establish a $15 hourly minimum wage under then-Governor Jerry Brown, a Democrat. Additionally, around 40 cities and counties in California already have minimum wages higher than the statewide rate, with six of them requiring minimum wages above $18 per hour as of this year.
