California Votes No On Proposition 32 But Minimum Wage Increases Still Coming

Voters in California rejected Proposition 32, which would have increased the minimum wage to $18 for all employers by 2026. Under the proposition, the minimum wage increases depended on the size of the employer. Specifically, employers with 26 or more would have had to pay $17 hourly for the remainder of 2024 and $18 hourly beginning on January 1, 2025. Employers with 25 or fewer employees would have had pay $17 hourly beginning January 1, 2025, and $18 hourly beginning January 1, 2026. Moreover, the minimum wage would have continued to adjust annually for inflation.

While the votes on ballot measures will not be formally certified until December 6^th, it seems the race is over with voters extinguishing the Proposition by a close margin— approximately 49.3% of California voters supporting an increase to the minimum wage and 50% of California voters rejecting Proposition 32.

Despite Proposition 32’s failure, California’s minimum wage will still increase on January 1, 2025 to $16.50. In addition, the minimum wage will increase on January 1, 2025, for several municipalities. Below, is a list of some of the local minimum wages increasing at the start of the year. Notably, there are many local municipalities as indicated below that already require minimum wages to increase beyond $18 after January 2025. Employers must continue to monitor the minimum wages at the local and state level.

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