This November, California voters will decide whether to gradually increase the statewide minimum wage to $18 an hour.
Prop 32 is one of 10 statewide ballot proposition that will be left up to voters in the Nov. 5 election. Here's what to know about the measure that would increase the state's minimum wage from the current $16 per hour.
Here’s what Prop 32 would do if passed
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- Businesses with 26 or more employees would need to raise wages to $17 an hour for the remainder of the year, and to $18 an hour on Jan. 1.
- Businesses with 25 or fewer employees would be required to raise wages to $17 on Jan. 1, and $18 an hour on Jan. 1, 2026.
If favorably voted on, California will have the highest statewide minimum wage in the country. It would put approximately $3,000 extra per year in the pockets of 2 million workers who have yet to benefit from industry specific raises.
Who’s supporting Prop 32?
- Joe Sanberg. The millionaire startup-investor turned anti-poverty-advocate first started his $18 an hour campaign in 2021. Sanberg has poured $10 million into raising the signatures needed to put this prop on the ballot but missed a key deadline last year, bouncing prop 32 to this year instead. In an interview with NBC, Sanberg said, "My mom raised me by herself in Southern California. We lost our home to foreclosure when I was a teenager, and my mom worked as hard as a mom could work and raise me and my brother to the best of her abilities."
- California Labor Federation
- Unite Here
- One Fair Wage
- Working Families Party California
- California Democratic Party
- League of Women Voters of California
Who’s opposing Prop 32?
- California Chamber of Commerce
- California Restaurant Association
- California Grocers Association
- National Federation of Independent Business
- Howard Jarvis Taxpayers Association
The prop has garnered heavy pushback from the state and business groups who fear disproportionate effects on local businesses. They argue a raise in wages would lead to a direct raise in consumer prices, making it harder for local businesses to keep their doors open among other rising costs. Job loss is another concern, however, according to the California Legislature’s nonprofit fiscal and policy advisor, it is estimated to change just one-quarter of 1 percent if passed. Other advocacy groups are pushing an unsystematic piecemeal strategy instead, or a series of smaller increases tailored to a specific area, rather than a uniform statewide hike.
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California became the first state in the nation to approve a $15 statewide minimum wage. Just last year Californians also raised fast food wages to a minimum $20 an hour, and medical staff to $25. But many say it’s still not enough. According to the MIT living wage calculator, single childless adults living in even the cheapest areas of the state need to make at least $20 an hour to live comfortably. According to 2021 data from the Bureau of Economic Analysis, the annual cost of living in the state is a little over $53,000. The current minimum wage comes to about $33,000, according to the Los Angeles Times. Major metropolitan areas including Los Angeles, San Francisco, San Diego, and San Jose often cost far more. Almost 40 California cities already mandate minimum wages over the state's minimum, and six have already reached $18 an hour.
Thus far, supporters have raised a little over $600,000, while those opposing have raised $65,000.
