How Proposition 32 Could Impact California Employees

This year, California healthcare and fast-food workers received a pay raise. If Proposition 32 is voted into law this year, many other employees could be next to receive a pay raise. However, as the results currently stand, the proposition remains in high contention, with opposition to it slightly ahead. At the time of writing this article, 51.1% of voters had voted ‘No’ and 48.9% of voters had voted ‘Yes.’ The following is what employees need to know about the potential changes that Proposition 32 would bring about.

Current Minimum Wage in California

The current minimum wage in California for most workers is $16.00 per hour. The Golden State offers employees one of the highest minimum wages in the nation. It trails only the District of Columbia, which offers workers $17.00 per hour, and Washington state ($16.28 per hour). California’s current minimum wage is more than two times the federal minimum, which is $7.25 per hour. California’s minimum wage has steadily risen since 2010, reflecting the Golden State’s high cost of living and efforts to support employees. However, Proposition 32 could lead to additional increases.

Upcoming Changes to the State’s Minimum Wage

As is the tradition every year, California’s minimum wage is scheduled to increase at the beginning of 2025. California’s minimum wage is adjusted yearly for inflation based on the Consumer Price Index. The minimum wage will go up on January 1, 2025, regardless of whether Proposition 32 passes or not. Suppose voters reject Proposition 32. In such a case, minimum wage employees will receive $16.50 per hour starting January 1, 2025. However, if voters pass Proposition 32 into law, the minimum wage will rise even higher.

Small employers (those with at most 25 employees) will be required to pay workers a minimum of $17.00 per hour, while large employers (those with over 25 employees) will be required to pay workers a minimum of $18.00 per hour. In 2026, the Proposition would hike the minimum wage for small employers, thereby resulting in all non-exempt employees earning at least $18.00 per hour. After that, any annual increases will be tied to the Consumer Price Index.   

It is crucial to note that if Proposition 32 is enacted, it would not immediately affect workers subject to a higher minimum wage or employees in various locales with a higher minimum wage than that set by the state.

Who Supports and Who Opposes Proposition 32?

Proposition 32 is receiving mixed reactions, with some supporting it and others opposing it. So far, the Proposition has garnered support from the California Teachers Association, California Democratic Party, and California Labor Federation. Those criticizing the Proposition include the California Chambers of Commerce, Restaurants Association, and Grocers Association. Supporters of the measure see it as a necessary step towards addressing the rising cost of living in the Golden State. However, those opposing the measure are concerned about the broader economic impact, such as increased costs for goods and services and potential job losses.  

We will continue monitoring the developments and update you once it is clear whether Proposition 32 has passed or failed.

Contact a California Employment Lawyer

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