California voters reject $18 minimum wage ballot measure

Voters in California have rejected a ballot measure that would have made the state minimum wage the highest in the US by 2026, at $18 an hour.

The current minimum wage rates are $16 an hour for most workers and $20 in the fast-food sector. The state’s healthcare sector will eventually see its minimum wage reach $25 an hour.

But voters narrowly rejected a measure to lift salaries for a broader swath of workers. The Associated Press called the vote on Tuesday evening, with 49.2% of state voters voting “yes”.

Proponents estimated that the measure would have benefited 2 million workers, including hotel and grocery employees.

“Proposition 32’s failure to pass is disappointing for all Californians who believe that everyone who works should earn enough to support their families,” said Kathy Finn, president of UFCW 770, a southern California union representing nearly 30,000 workers in various sectors.

Opponents of the measure had argued it would have increased costs, led to higher taxes and pushed businesses to cut jobs.

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

Polling by the Associated Press and Norc at the University of Chicago suggest that California voters saw the economy as the most important issue facing the country, ahead of immigration, the climate and abortion access.

In 2016, California became the first state to pass a $15 hourly minimum wage under a law signed by Jerry Brown, the governor at the time. About 40 cities and counties already have minimum wages higher than the statewide rate, and six of them require minimums above $18 an hour as of this year.

Hawaii passed a law in 2022 to gradually increase the statewide minimum wage to $18 an hour, but it does not take effect until 2028.