California's Prop 32 Would Increase California's Minimum Wage to $18 Per Hour by 2026

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from Mark Smith, Advocate, California Builders Alliance

There are nearly a dozen ballot measures on the November statewide ballot.  Over the next couple weeks we will highlight several of them to help provide neutral, fact based information on what each initiative is proposing to do.  These are not endorsements or rejections of any measure. If you have specific questions please do not hesitate to reach out to us and we will do our best to answer them.

The first one is short and simple. A rarity for ballot measures!

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Prop 32: In November 2024, California voters will decide whether to raise the minimum wage to $18 per hour by 2026 for all employers.

The full text of the proposition is available here

Under existing law, California’s minimum wage is $16 per hour for all employers. The ballot initiative, termed as the “$18 Minimum Wage Initiative” and on the ballot as Proposition 32 (“Prop 32”), would raise the minimum wage to $18 per hour by 2026 as follows: 

  • Employers with 26 or more employees would pay $17 per hour for the remainder of 2024 and $18 per hour starting on January 1, 2025. 
  • Employers with 25 or fewer employees would pay $17 per hour starting on January 1, 2025, and $18 per hour starting on January 1, 2026.

Beginning in 2027, the minimum wage would be adjusted for inflation.

The ballot initiative would not change any local minimum wage requirements (described here) or any industry-specific minimum wages like the higher minimum wage requirements for fast food restaurant employees (described here) or healthcare workers (described here). 

Here is a link to the analysis of the Proposition by the Legislative Analyst’s Office; https://www.lao.ca.gov/BallotAnalysis/Proposition?number=32&year=2024

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MARK SMITH
Smith Policy Group
1001 K Street, 6th Floor
Sacramento, CA 95814
(916) 335-5072
mark@smithpolicygroup.com
smithpolicygroup.com

 

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