LOS ANGELES — Voters are set to make a significant decision in November, determining whether California will raise its hourly minimum wage to $18 by 2026, potentially establishing it as the highest statewide minimum wage in the nation.
This proposed increase would align with Hawaii, where workers are anticipated to receive at least $18 per hour by 2028 under a previous law.
Currently, five states, including Alabama and South Carolina, operate without a state minimum wage but adhere to the federal minimum wage of $7.25 an hour.
Under Proposition 32, California’s ballot measure, the minimum wage would increase from $16 to $17 for businesses with 26 or more employees for the rest of 2024, rising to $18 in January 2025. If the measure fails, the state’s minimum wage is scheduled to increase to $16.50 in the coming year.
Small businesses with fewer than 26 employees would be required to pay their workers $17 per hour starting January 2025, escalating to $18 by 2026.
Supporters of Proposition 32 argue that it will provide much-needed assistance to low-wage workers striving to support their families in one of the most expensive states in the U.S. Proponents highlight that the wage increase could benefit over 2 million Californians working minimum-wage jobs.
Critics, however, raise concerns about the practicality of the measure, particularly for small businesses with narrow profit margins. They warn that the higher wages could result in increased costs for consumers and potential job losses.
Nearly 40 cities in California, including San Francisco and Berkeley, have already implemented local minimum wages exceeding the state level. In Los Angeles, the minimum wage is currently $17.28 per hour.
In West Hollywood, the minimum wage is set at $19.08, but business owners report challenges, with a significant percentage stating that they have had to lay off employees or reduce hours due to the ordinance.
In April, fast food workers saw their wages rise to $20 an hour due to a law enacted by state leadership, and health care wages are also set to gradually increase to $25 an hour by July 2026.
A recent study indicated that fast food prices rose 3.7% following the wage increase, yet employment levels remained relatively stable, although some Southern California franchises reported reduced hours for employees as a consequence.
Experts studying the labor market indicate that raising the minimum wage does not significantly impact the overall employment rate, suggesting that effects may cancel each other out.
Opponents of the wage hike also argue that many low-wage jobs are typically held by students or younger individuals seeking advancement, but data shows that a substantial portion of low-wage workers are over the age of 35, with a significant number being Latino.
Business owners are already facing inflationary pressures, and some express apprehensions about their ability to sustain operations under the proposed wage increases.
Across the state, workers have been advocating for better pay and benefits, with ongoing strikes among hotel employees reflecting the push for fair compensation as the economy recovers post-pandemic.
Some workers, such as banquet captains earning $16 per hour, voice support for the proposition, hoping it will lead to better financial stability for families.
Others argue that even if the measure is successful, it may still fall short of addressing the high costs of living in cities like Sacramento.
