Californians voted down a proposal to bump up the minimum wage to $18 an hour, but there still will be an increase in the New Year.
By less than 1%, California voters rejected Proposition 32, the ballot measure to raise the state minimum wage in January to $18 for large employers and to $17 for employers with 25 or fewer workers. If it had passed, the rate for those smaller employers would have jumped to $18 the following year.
As it stands, the state’s minimum wage will continue with a planned 50-cent increase to $16.50 in 2025. The figure is adjusted every year based on inflation, with increases capped at 3.5% a year (it can’t decrease).
Supporters of Proposition 32 had said the measure would have provided raises for about 2 million Californians. Analysts said the backdrop of high inflation and voters’ concerns about minimum wage increases being passed along to consumers likely contributed to the vote result.
For context, a $16.50/hour minimum wage amounts to $34,320 a year for a full-time worker.
An $18/hour minimum wage would have been $37,440, or an increase of $3,120 a year.
Washington, D.C., leads the nation with a minimum wage of $17.50, plus annual inflation-based adjustments.
But some California industries already are set for minimum wages above $18/hour:
- In April, a $20 minimum wage took effect for most fast food workers.
- The lowest-paid health care workers are on track to reach $25 an hour over the next several years, though the trajectory varies based on multiple factors. Their first raise came in October.
Also noteworthy: Certain California localities have higher minimum wages.
When the New Year arrives, minimum wage-earning workers should double-check their pay stubs for the appropriate hourly rate for their locality and industry.
Keller Grover advocates for workers, helping you better understand your rights, protections and options. In more than 25 years litigating fraud and employment cases, we have recovered hundreds of millions of dollars for clients and class members. If you’ve faced or suspect mistreatment in the workplace, contact us for a free, confidential consultation.
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