Proposition 32, one of ten ballot measures in California’s upcoming November 5 election, proposes increasing the statewide minimum wage to $18 per hour. Currently, the state’s minimum wage is $16 per hour. If approved, the measure would mandate businesses with 26 or more employees to raise wages to $17 immediately, followed by $18 on January 1. For smaller companies with 25 or fewer employees, the $17 wage would take effect on January 1, 2026, followed by $18.
The YES Side
Supporters of the measure, including millionaire advocate Joe Sanberg and labor organizations like the California Labor Federation and Unite Here, argue that the increase would put about $3,000 extra per year in the pockets of nearly 2 million workers. They believe it would help combat the high cost of living in California, where even the cheapest regions require at least $20 an hour to live comfortably, according to the MIT living wage calculator.
While California was the first state to adopt a $15 statewide minimum wage, critics argue that the current wage doesn’t cover the rising costs of living, particularly in expensive metro areas like Los Angeles and San Francisco. Some cities in California have already reached $18 per hour, while others still struggle with affordability.
The NO Side
A “no” vote on Prop 32 would maintain the current minimum wage of $16 per hour, with the possibility of increases if annual inflation reaches 3.5% or higher.
Opponents, including the California Chamber of Commerce, the California Grocers Association, the California Restaurant Association, and the National Federation of Independent Business, argue that raising the minimum wage would increase consumer prices, hurt local businesses, and lead to job losses. They also express concerns that further wage increases could exacerbate inflation in the state.
According to these groups, “Prop 32 brings record-setting price increases to small restaurants, grocery stores, convenience stores, small retail shops, farmers, and more, causing sticker shock everywhere.” They warn that Prop 32 could be especially burdensome for small businesses, which may struggle to stay open under the new requirements. They further argue that when a company shuts down, or workers lose their job, the effective wage becomes zero dollars per hour.
