California voters have rejected a ballot measure that proposed raising the state minimum wage to $18 per hour by 2026
Proposition 32 which would have made California’s minimum wage the highest in the country.
Driving the news: Opponents of the measure, including the California Chamber of Commerce, argued that it would increase costs, lead to higher taxes, and potentially result in job cuts by businesses.
- Proponents estimated that the proposed measure would have benefited around 2 million workers, including those in the hotel and grocery sectors.
State of play: The current minimum wage rates in California are $16 per hour for most workers and $20 in the fast-food sector, with the healthcare sector set to reach $25 per hour under a law signed by Governor Gavin Newsom in 2023.
Zoom out: California was the first state to pass a $15 hourly minimum wage in 2016, with some cities and counties already having minimum wages higher than the statewide rate.
- Hawaii also passed a law in 2022 to gradually increase the statewide minimum wage to $18 an hour, effective from 2028.
