California voters narrowly rejected a ballot measure that would have raised the state minimum wage for some employees to $18 per hour by Jan. 1, 2025, and for all California employees by Jan. 1, 2026. This is reportedly the first rejection of a minimum wage ballot measure in the state’s history.
California’s Proposition 32 would have raised the state minimum wage for employers with 26 or more employees to $17 per hour immediately and to $18 per hour on Jan. 1, 2025. Proposition 32 also would have increased the minimum wage for employers with 25 or fewer employees to $17 per hour on Jan. 1, 2025, and to $18 per hour on Jan. 1, 2026.
The ballot measure was defeated with only 49.2% voting “yes” for the measure, according to the state’s unofficial election results as of Nov. 20. The vote will not be certified until December 2024, but major media has called the election.
Statewide votes on minimum wage increases are generally successful, but opponents of Proposition 32 warned that the increases could lead to higher prices for everyday products, higher costs for small businesses, and job cuts.
The rejection of Proposition 32 also comes after the California Fast Food Accountability and Standards Recovery Act set a new $20-per-hour minimum wage for workers in most fast-food restaurants in April 2024.
Under the current minimum wage law, the California minimum wage for non-fast-food workers is $16 per hour and will increase to $16.50 per hour on Jan. 1, 2025.
Charles L. Thompson IV is an attorney with Ogletree Deakins in San Francisco. Zachary V. Zagger is senior marketing counsel with Ogletree Deakins in New York City. © 2024 Ogletree Deakins. All rights reserved. Reposted with permission.
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