California Voters Reject Proposition 32

Many California voters recently rejected a statewide minimum wage increase, highlighting growing concerns over the rising cost of living. Specifically, voters turned down Proposition 32, an initiative that would have increased the state’s minimum wage to $18 per hour for all non-exempt employees by 2026. This amount would have then continued adjusting annually for inflation. Under Proposition 32, the minimum wage increase would have depended on the employer size, with larger employers being required to implement higher salaries sooner than smaller ones. The proposition was narrowly defeated, with 50.8% of voters opposing it and 49.2% voting in favor of it.

Proposals Under Proposition 32

If you’re just learning about Proposition 32, you might wonder what it is and what the proposition proposed. If the majority of California voters had voted for Proposition 32, large employers (those with 26 or more employees) would have been required to pay their employees $17 per hour for the remainder of 2024. Beginning January 1, 2025, these employers would have been required to pay $18 per hour. On the other hand, smaller employers (those with 25 or fewer employees) would have had to pay their workers $17 starting from January 1, 2025. On January 1, 2026, these employers would have been obligated to begin paying their employees $18 per hour. In other words, if Proposition 32 had passed by 2016, the minimum wage for all non-exempt employees would have been $18 per hour. This would have been the highest state minimum wage in the country.

Reasons for the Rejection

Supporters of Proposition 32 believed that it was the answer to rising living costs. They believed raising the minimum wage could help workers handle the rising living costs. However, critics felt that if Proposition 32 passed, it could increase prices for everyday essentials, including food, childcare, and transportation. Combined with inflation, these costs already burden families struggling to meet their basic needs.

Many people who voted against the proposition also shared these concerns. In fact, polling indicated that Californians knew about the impact the new $20 minimum wage for fast-food workers had on small business and consumer food costs. This increase resulted in higher prices at fast-food chains, affecting low-income families the most since they depend on affordable meals.

The decision to reject Proposition 32 sent a message that while Californians recognize that fair wages are important, they also recognize that policies need to ensure that everyday necessities remain affordable. California voters are demanding a balance between fair wages and policies that ensure necessities are not overpriced, making it hard for families to meet their daily needs. According to opponents, the rejection of Proposition 32 reflects Californians’ reluctance to bear the higher costs that frequently come with raising the minimum wage.

Upcoming Minimum Wage Increases

Despite Californians rejecting Proposition 32, the state’s minimum wage is set to increase to $16.50 at the beginning of 2025. Furthermore, many local municipalities will see their local minimum wages increase on January 1, 2025. Some local municipalities require their minimum wage to rise beyond $18 in 2025. They include Mountain View ($19.20), Sunnyvale ($19.00), El Cerrito ($18.34), Los Altos ($18.20), and Redwood ($18.20).

Contact a California Employment Lawyer

Contact a California employment lawyer near you if you have questions or need help with an employment law-related matter.