In a historic vote, California residents have narrowly rejected Proposition 32, which would have raised the state's minimum wage to $18 per hour by 2026. The measure failed with 50.8% voting against it and 49.2% in favor, marking the first defeat of a statewide minimum wage initiative in nearly three decades.
The voting patterns showed a clear geographic divide across the state. Most Bay Area and coastal counties supported the wage increase, while inland counties largely opposed it. Currently, California's minimum wage stands at $16 per hour for most workers, with fast-food employees at larger chains earning $20 per hour under legislation passed in 2023.
The California Chamber of Commerce celebrated the measure's defeat. "With the economy and costs top of mind for many voters this election, that message appears to have resonated," said CEO Jennifer Barrera in a statement to The Associated Press.
State Senate Minority Leader Brian Jones expressed support for the outcome, stating that raising minimum wages leads to increased inflation and unemployment. However, Governor Gavin Newsom has previously defended wage increases, particularly the recent fast-food worker pay boost, saying it gave workers a "greater voice in workplace standards."
The initiative received substantial financial backing, including $10 million from entrepreneur Joe Sanberg, who spearheaded the campaign. Democratic Los Angeles City Councilman Kevin de Leon also prominently supported the measure.
Had it passed, the increase would have made California's minimum wage the highest in the United States. While this measure failed, other states saw success with similar initiatives - voters in Alaska and Missouri recently approved gradual increases to $15 per hour by 2026.
The defeat of Proposition 32 marks a notable shift in California's wage policy landscape, as it represents the first time since 1996 that voters have rejected a statewide minimum wage increase. The last such defeats occurred in Missouri and Montana, where voters declined minimum wage increases to $6.75 and $6.25 per hour, respectively.