California Voters Reject Plan That Would Have Raised the Minimum Wage to a Nation-high $18 Per Hour

SACRAMENTO, Calif. — California voters rejected a ballot proposition to raise the state minimum wage to $18 per hour by 2026, the highest in the country.

Opponents, notably the California Chamber of Commerce, claimed it would have raised costs, resulted in greater taxes, and forced firms to slash jobs.

“With the economy and costs top of mind for many voters this election, that message appears to have resonated,” said Jennifer Barrera, president and CEO of the chamber.

Proponents believed that the bill would have helped 2 million people, including hotel and grocery workers.

“Proposition 32’s failure to pass is disappointing for all Californians who believe that everyone who works should be able to support their families,” said Kathy Finn, president of UFCW 770, a Southern California union that represents over 30,000 workers in diverse industries.

The current minimum wage is $16 per hour for most workers and $20 in the fast food industry. A measure signed by Democratic Gov. Gavin Newsom last year and put into effect in October would gradually raise the minimum wage in the health-care sector to $25 per hour.

Hawaii enacted a bill in 2022 to gradually raise the statewide minimum wage to $18 per hour, although it will not take effect until 2028.

In 2016, California became the first state to enact a $15 hourly minimum wage, according to legislation signed by then-Gov. Jerry Brown, a Democrat. Approximately 40 cities and counties currently have minimum wages greater than the statewide standard, with six of them requiring minimums exceeding $18 per hour as of this year.