Proposition 32 was aCalifornia ballot proposition that was voted on as part of the2024 California elections on November 5. It was ultimately rejected, with 50.7% of voters voting 'no',[2] but the results remained too close to call for several weeks after election day;[3] theAssociated Press called the race on November 20 andCNN had called the race by December 12.[4][5] If it had passed, the proposition would have enacted theLiving Wage Act of 2022 which would have increased the state'sminimum wage to $18 per hour by 2025 and adjusted it every year to reduce the impact ofinflation.
US states can set their own minimum wages if they choose to do so, with the federal minimum wage being used if a minimum wage is not set or if it is set below the federal level.[6] In California, the state minimum wage as of January 1, 2024 was $16 per hour.[7][note 1] As of July 2024[update], California had the highest minimum wage of any state and was the highest in the country except for some part ofNew York (which also have a $16/hour minimum wage) and theDistrict of Columbia (which has a minimum wage of $17.50/hour).[10] Despite this, California's minimum wage "lags far behind the state's prices"; as of October 2024[update], the statewideliving wage is $27.32 per hour.[11]
The proposition was initially set to be included in the2022 California elections, but was delayed after theCalifornia Secretary of State announced that not enough signatures had been verified for it to qualify.[14] Propositions needed 700,000 signatures to be on the ballot;[13] although the campaign said it had gathered 1,000,000 signatures, because it only submitted them in May, not all the signatures could be verified by the June 30 deadline.[15]Joe Sanberg, the proposition's filer,[16] filed a court case to have the proposition put on the ballot, but this was rejected in July 2022 with the proposition instead confirmed for the 2024 elections.[15]
Politico reported in April 2024 that the proposition had been "met so far with shrugs" from unions and business interest groups predominantly because piecemeal industry-by-industry increases to the minimum wage had meant that "it is hard to find anyone who wants to fight over $18".[17]
A survey by theUniversity of Southern California found that people from households earning under $50,000 a year were most likely to support the proposition, and those from households earning over $100,000 were most likely to oppose it.[16]
Many supporters focused on the risingcost of living. In its endorsement,The Sacramento Bee said it was not ignoring "the concerns of business leaders" but that "too many workers can't afford to live on their wages".[18]The Mercury News andEast Bay Times joint endorsement highlighted that $18 is "still not a living wage" for workers in California and "certainly not in theBay Area."[19]
Proponents disputed the idea that higher minimum wages cause job losses. TheLos Angeles Times argued that "higher wages actually make it easier for employers to fill job vacancies and retain workers" and that Proposition 32 was "a reasonable and narrow measure" that focuses on those who "are most in need of a boost".[20] A study fromUC Berkeley found that California's increase to a $15 minimum wage had "no significant" effect on unemployment levels.[21][22]
Saru Jayaraman, president ofOne Fair Wage, said that opposition campaigning had scared some voters, but that "[n]one of the doom and gloom that they predicted turned out to be true" in the case of the increased minimum wage for fast food workers.[23]
Joe Sanberg was a major donor to the proposition during the 2022 cycle, spending $10 million to get it on the ballot.[17] In April 2024,Politico reported that Sanberg had "not raised a dime for the effort in months" and said he was "banking on the inherent appeal" of a higher minimum wage.[17]
In the 2024 cycle, as of 5 November 2024[update], $948,000 had been raised in support of the proposition.[22] Almost all of this was byKevin de León, who had raised more than $800,000.[22]
Opponents argued that a higher minimum wage would lead to increased prices.The San Diego Union-Tribune called on voters to use the proposition "as a referendum on how California is being governed" and argued that "[j]ust as Trumpian tariffs make life more expensive, so do mandatory wage hikes".[45]
High unemployment was also a concern. ThePress-Telegram warned that approving Proposition 32 would "make many low-skill workers unemployable".[46] Opponents highlighted surveys commissed by the city ofWest Hollywood, which had implemented a local minimum wage of $19.08/hour, found that 42% of responding businesses had laid off workers or reduced hours due to higher wages.[22]
The election was initially characterised as being too close to call,[3][56] withPolitico reporting on 11 November that five million votes remained uncounted mostly inAlameda,Santa Clara,San Francisco andLos Angeles counties.[3] TheAssociated Press called the election on 20 November, projecting that the proposition had failed.[4] By 12 December,CNN had also called the race.[5]
The official results tallies were released on 13 December 2024 byShirley Weber,California's Secretary of State. They showed that the proposition had failed, with 7,686,126 people voting no and 7,469,803 people voting yes.[2] The proposition was the first statewide ballot measure raising the minimum wage in the U.S. to be rejected since 1996.[57]
^Some types of worker have a higher minimum wage in California. From April 1, 2024, fast food workers had a minimum wage of $20 per hour[8] and from October 16, 2024, certain healthcare workers had a minimum wage of between $18 and $23.[9]
^Since Bonta writes the ballot titles and summaries in his role as state attorney general, he "doesn't weigh in on most state propositions".[24]
^abcdPolitico recorded this organization as "not saying" on Proposition 32[29]
^Equality California did not release an endorsement for Proposition 32[55]
^abKey: A – all adults RV – registered voters LV – likely voters V – unclear
^The question put to respondents was "Do you favor or oppose a policy that would increase the current minimum wage from $15 per hour to $16 in 2024 and subsequently by $1 each year until it reaches $18?"