| Update Applicable to: | Due date |
| All employers with at least 1 worker in California | November 5, 2024 |
What happened?
On November 5, 2024, California voters would decide if Proposition 32 increases California’s minimum wage to $18 per hour over time, the rate of the increase depending on whether an employer has 26 or more workers.
What are the details?
If California voters decide that Proposition 32 is convenient (whether they have reflected upon the possible consequences of that or not), the scheduled increase would depend on whether the employer has (1) 26 or more workers and (2) 25 or less workers. It would begin on January 1, 2025.
| Increases to Minimum Wage – Proposition 32 | |||||
| Year | Employers of 26 or More Workers | Employers of 25 or Less Workers | |||
| 2024 | $17.00 | $17.00 | |||
| 2025 | $18.00 | $17.00 | |||
| 2026 | $18.00 | $18.00 | |||
| 2027 | $18.00 + CPI-W Adjustment | $18.00 + CPI-W Adjustment | |||
If passed, these increases would not immediately impact workers and employers already subject to a higher minimum wage, such as the $20 per hour minimum wage applicable to certain fast food workers and the $25 per hour minimum wage for certain health care workers (which was delayed).
Starting in 2027, the wage would be adjusted based on inflation, as the state already does
Although the ballot has support (obviously), there is strong opposition.
The fate of California’s minimum wage is on the ballot.
Business Considerations
- If approved, employers should plan to adjust their salaries and all that it entails with the minimum wage increases. They should be especially vigilant regarding overtime since the Overtime Rule is in effect with renewed force.
- Everyone affected, especially employers, should reflect and consider the consequences of Proposition 32 passing or sinking.
Source References
Resources
- California Proposition 32, $18 Minimum Wage Initiative (2024) (Ballotpedia)
- CA Proposition 32 Voter Guide & Information
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