Proposition 32 is one of 10 new propositions coming to California in November. If passed, Prop 32 would raise minimum wage immediately to $17 and then to $18 starting Jan. 1 for employers with 26 employees or more. For employers with 25 or fewer employees, it would raise the minimum wage to $17 on Jan. 1, 2025, and $18 on Jan. 1, 2026.
The California minimum wage is adjusted every year based primarily on inflation. Currently, the minimum wage in California is $16 an hour.
Prop 32 would serve essential workers and assist them in being able to afford the cost of living and basic needs, the pro-argument of the California voter’s guide said.
Those opposing Prop 32 claim it would increase the cost of living, eliminate jobs and make state and local government budget deficits worse. It would also make minimum wage laws more difficult for businesses and employees to comprehend, the con-argument of the California voter’s guide said.
The fiscal effects would be higher wages for workers and likely higher prices for businesses. The overall price increase would likely be less than one-half of one percent, as stated in the California voter’s guide. Prop 32 may lower profits for businesses and employment rates may increase or decrease.
Government costs may increase because state and local governments would have to pay employees more. However, due to income raises, less people would be enrolled in health and human services programs, which could reduce state and local government costs, stated the California voter’s guide.
“We can all agree that Californians who work hard, working full time or more, should not live in poverty,” pro-arguments for Prop 32 said. “But that’s exactly how millions of Californians are living because their wages are too low to afford how expensive life has become in California.”
Organizations that support Prop. 32 include the California Labor Federation, Unite Here, One Fair Wage, Working Families Party California and the League of Women Voters of California.
Those against Prop 32 said increasing the minimum wage will likely increase state and local government costs. People will then have to pay higher taxes and cuts will be made to important programs. They also argue it will make small and family owned businesses struggle to pay their employees.
Organizations against Prop 32 include the California Chamber of Commerce, California Restaurant Association, California Grocers Association, National Federation of Independent Business and Howard Jarvis Taxpayers Association.
The California general election will take place on Nov. 5 but ballots will begin mailing out on Oct. 7 in Butte County.
Beatrice Williams can be reached at [email protected].
