California Voters to Decide on $18 Minimum Wage

Proposal sparks debate over economic impacts and worker benefits
By Newser.AI Read our AI policy
Posted Oct 13, 2024 8:42 AM CDT
California Voters to Decide on $18 Minimum Wage
Sheraton Grand Hotel workers represented by United Here Local 49, a union that represents hospitality workers, participate in a strike authorization vote in Sacramento, Calif., Wednesday, Sept. 11, 2024. The union is asking for higher wages and the reversal of COVID-era staffing cuts.   (Paul Kitagaki Jr./Sacramento Bee via AP)

California will soon vote on Proposition 32, aiming to raise the state's minimum wage to $18 per hour by 2026, potentially making it the highest minimum in the US. A law passed in Hawaii two years ago will see the state reach a similar minimum by 2028. Currently, five states follow the federal minimum wage of $7.25 without a state mandate; they include Alabama, South Carolina, and Tennessee.

Prop 32 proponents argue the raise would bolster low-income families amidst California's high cost of living. Joe Sanberg, an investor and advocate, emphasizes that full-time workers on minimum wage still depend on government aid, referring to it as "corporate welfare." He claims the increase could provide an annual $3,000 boost to over 2 million residents. Conversely, opponents fear difficulties for businesses, especially small ones, to adapt financially, warning of potential job cuts and cost burdens shifting to consumers.

Small businesses that have under 26 employees would have to pay $17 an hour in January 2025 and $18 per hour in 2026. Absent the proposition, the state minimum wage will rise to $16.50 next year. Roughly 40 California cities (San Francisco and Berkeley among them) already have local minimum wages that exceeds the state's. Since July, LA workers have gotten a minimum of $17.28. West Hollywood has an hourly minimum wage of $19.08, but business owners there aren't pleased. A survey of 142 businesses found 42% laid off employees or cut their hours as a result. (This story was generated by Newser's AI chatbot. Source: the AP)

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