Voters to consider raising minimum wage to $18 with Proposition 32

Californians will take their wages into their own hands at the ballot box in November as they vote on Proposition 32.

It would raise the minimum wage from $16 to $18 per hour.

Supporters call it the "California Living Wage Act."

"Sometimes you have to change policy and state law to impact the most amount of workers," Dillon Savory said.

He is the executive director of the Central Labor Council.

He works with thousands of workers, many with minimum wage jobs, who he says often struggle to make ends meet.

"They're bringing in a really small amount of money, and they're dedicating all of that to their basic needs, and they don't have healthcare," Savory said.

Proposition 32 faces pushback from the business community, including the California Grocers Association, the California Restaurant Association, and the California Chamber of Commerce.

"The underlying question should be why are our costs so high in California, as compared to the rest of the country?" California Chamber of Commerce president and CEO Jennifer Barrera said.

Barrera says the proposal does not address the root cause of inflation, and she is concerned it is a one-size-fits-all approach that could force businesses to choose between raising costs for consumers and laying off employees.

"It doesn't treat an employer who has a larger profit margin, as they claim, any different than it treats somebody who has a very razor-thin profit margin," Barrera said.

Proposition 32 would not apply to independent contractors or self-employed workers. Since some cities already have higher minimum wages, it would not impact them.

There is also a carve-out for fast-food workers who have their own $20 minimum wage.

"Thousands and thousands of workers locally will benefit from Proposition 32 passing, but millions of Californians will also do so, whether they're in a union or not," Savory said.

If Proposition 32 passes in November, wages will go up to $17 an hour immediately.

Wages would then go up to $18 in January 2025, but the raise would be gradual for small businesses until 2026.

"Ultimately, there will be no distinction after one year," Barrera said. "It will be the same minimum wage no matter if you're a smaller employer or a larger employer."

If Proposition 32 fails, the minimum wage would be about $17 in 2026. Either way, wages will continue to rise based on inflation.

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