California’s Prop 32 Would Increase California’s Minimum Wage to $18 Per Hour by 2026

In November 2024, California voters will decide whether to raise the minimum wage to $18 per hour by 2026 for all employers.

The full text of the proposition is available here. 

Under existing law, California’s minimum wage is $16 per hour for all employers. The ballot initiative, termed as the “$18 Minimum Wage Initiative” and on the ballot as Proposition 32 (“Prop 32”), would raise the minimum wage to $18 per hour by 2026 as follows: 

• Employers with 26 or more employees would pay $17 per hour for the remainder of 2024 and $18 per hour starting on January 1, 2025. 
• Employers with 25 or fewer employees would pay $17 per hour starting on January 1, 2025, and $18 per hour starting on January 1, 2026.

Beginning in 2027, the minimum wage would be adjusted for inflation. The ballot initiative would not change any local minimum wage requirements (described here) or any industry-specific minimum wages like the higher minimum wage requirements for fast food restaurant employees (described here) or healthcare workers (described here). 

Given the potential changes, California employers should monitor the results of the 2024 ballot initiative.