PROPOSITION RAISES MINIMUM WAGE.
32 INITIATIVE STATUTE.
OFFICIAL TITLE AND SUMMARY PREPARED BY THE ATTORNEY GENERAL The text of this measure can be found on page 97 and the Secretary of State’s website at voterguide.sos.ca.gov.
• California’s minimum wage is currently $16 per
hour. This measure increases that minimum, as
follows:
• Employers with 26 or more employees would
pay $17 hourly for the remainder of 2024
and $18 hourly beginning on January 1,
2025.
• Employers with 25 or fewer employees would
pay $17 hourly beginning January 1, 2025,
and $18 hourly beginning January 1, 2026.
• Thereafter, as existing law provides, the
minimum wage annually adjusts for inflation.
• In addition to the generally applicable minimum
wage described above, current laws establish
a higher minimum wage in specified industries.
This measure does not amend those laws.
SUMMARY OF LEGISLATIVE ANALYST’S ESTIMATE
OF NET STATE AND LOCAL GOVERNMENT FISCAL
IMPACT:
• State and local government costs could
increase or decrease. This change likely would
not exceed the high hundreds of millions of
dollars annually.
• State and local tax revenues likely would
decrease. This revenue loss likely would not
exceed a few hundred million dollars annually.
32 ANALYSIS BY THE LEGISLATIVE ANALYST
BACKGROUND
State and Local Laws Set Minimum Wages.
Employers must pay their workers at least the
minimum wage. California’s minimum wage
currently is $16 per hour. Some local governments
have higher minimum wages. Minimum wage
laws do not apply to independent contractors and
other self-employed people.
Infation Adjustments Under Current Law. Prices
tend to go up over time. These rising prices are
called “infation. ” The state adjusts its minimum
wage every year based on infation. Each
adjustment matches U.S. infation, except in
two cases:
• If infation is negative, the adjustment is zero.
• If infation exceeds 3.5 percent, the
adjustment is 3.5 percent.
State Sets Higher Minimum Wages for Some
Employers. State laws set higher minimum wages
for employers in some industries. For example,
most fast food restaurants must pay their workers
at least $20 per hour.
PROPOSAL
Higher Minimum Wage in 2025. In 2025,
California would have diferent minimum wages
for employers of diferent sizes. Employers with
26 or more employees would have a minimum
wage of $18 per hour. Employers with 25 or
fewer employees would have a minimum wage
of $17 per hour. Without Proposition 32, the
minimum wage for all employees would be about
$16.50 per hour. The proposition would not
change any local or industry-specifc minimum
wages.
Minimum Wage $18 Per Hour in 2026. In 2026,
the minimum wage would be $18 per hour for all
employees. Without Proposition 32, it likely would
be about $17 per hour.
Infation Adjustments Paused Until 2027. The
minimum wage would be adjusted for infation
every year starting in 2027. These adjustments
would follow the current rules described earlier.
38 | Title and Summary / Analysis