A ballot proposition that would have progressively raised California’s minimum wage to $18 per hour was narrowly defeated by voters, according to NBC News’ prediction on Wednesday.
This is the first time since 1996 that a ballot initiative to increase the state minimum wage has failed nationally.
The California bill, which was on the ballot as Proposition 32, called for raising the minimum wage to $18 per hour by 2026, making it the highest in the country.
With 92% of the vote counted, 50.8% of voters supported the no vote, compared to 49.2% who supported the yes vote.
Opponents said that enacting the legislation would have increased costs for firms, which would have likely led to employee terminations, while supporters claimed that it would have benefited workers.
The measure’s opponents, the California Chamber of Commerce, celebrated its defeat.
According to a statement from CEO Jennifer Barrera, CalChamber opposed Prop. 32 because it would have increased prices for consumers and small company employers. That message seems to have struck a chord this year, since many voters are focused on the economy and expenses.
The state minimum wage in California is currently $16 per hour for the majority of workers; however, many fast-food workers are now paid $20 per hour after a measure signed by Democratic Governor Gavin Newsom that went into effect in March.
The minimum wage for many health care workers in the state was raised to $25 per hour beginning last month by another measure that Newsom signed.
California already has one of the highest minimum wages in the nation at $16. While the minimum wage in Washington state is $16.28, several New York cities also have minimum salaries of $16 per hour. A law passed in 2022 calls for a gradual increase in Hawaii’s minimum wage to $18 per hour in 2028.
This is the first time a ballot initiative to raise the state minimum wage has failed in 28 years. Ballotpedia, a website that monitors the results of statewide ballot proposals, reports that since 1996, when voters in Missouri and Montana rejected increases, voters have approved all 26 state minimum wage increases that have been on statewide ballots.
This month, ballot initiatives to raise the minimum wage were handily approved in two other states.
According to NBC News forecasts, voters in Missouri and Alaska adopted proposals to gradually boost their state minimum salaries to $15 per hour by 2026, with further hikes tied to economic statistics. Both initiatives prevailed by a margin of 16 points.
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