California Voters Reject Minimum Wage Hike

For the first time in California history, a ballot measure seeking a statewide minimum wage increase has failed.

The ballot measure results were finally called by the Associated Press on Tuesday, two weeks after Election Day. California Proposition 32, which would have increased the minimum wage to $18 an hour by 2026, failed by approximately 240,000 votes, a less-than-2% difference.

The proposition was strongly opposed by the California Chamber of Commerce, which argued that the measure would increase taxes and force businesses to cut jobs, according to the AP. Earlier this year, Democrat-led California instituted a $20-an-hour minimum wage for fast-food workers, a move that caused many restaurants to hike prices and cut back on staff.

“Californians are sending Gavin Newsom and the SEIU a clear message: They’re sick of being lab rats for their pet projects,” said Rebekah Paxton, research director at the Employment Policies Institute (EPI), a conservative think tank. “Voters saw the devastating economic fallout of the $20 fast food minimum wage law, and for the first time in state history, voted against a statewide minimum wage hike.”

An EPI survey of 182 limited-service restaurant operators in California published in July found that 98% of fast-food restaurants in the Golden State increased prices after the minimum wage hike, 89% reduced employee hours, and 70% reduced the size of their staff.

In September, Newsom wrote an opinion piece published by Fox News arguing that the “modest” fast-food minimum wage increase resulted in more fast-food jobs in the state along with “better working conditions, reduced financial stress and greater opportunities for upward mobility.”

“Our commitment to raising the minimum wage is a testament to California’s values,” Newsom wrote. “We believe in fairness, equity and the idea that everyone deserves a chance to succeed. And these results dispel the cynics who say we must choose between protecting workers and growing the economy.”

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The broader minimum wage hike that went before voters earlier this month was pushed by unions such as the SEIU and UFCW 770. Kathy Finn, president of UFCW 770, which represents around 30,000 workers, said, “Proposition 32’s failure to pass is disappointing for all Californians who believe that everyone who works should earn enough to support their families.”

California’s minimum wage is already one of the highest in the country at $16 an hour for most workers, and six cities and counties in the state already have an $18-an-hour minimum wage. West Hollywood has the highest minimum wage in the state at $ 19.08 an hour for non-hotel employees, set to increase to $19.65 on January 1.