California voters They decide in the November electoral process whether it should be increased to $18 an hour by 2026which would be the highest state minimum wage in the United States.
If voters are in favor of Proposition 32California would have the highest minimum wage along with Hawaii, where workers are on track to be paid at least $18 an hour by 2028, according to a law passed two years ago.
Five states, including Alabama, South Carolina and Tennessee, do not have a state minimum wage, so are subject to the federal hourly minimum wage of $7.25 per hour.
Keep reading: California increases minimum wage for health workers
Initiative proposes minimum wage for 2026
The initiative, a California referendum proposal, calls for raising the current state minimum wage from $16 to $17 an hour for the rest of 2024 for employers with at least 26 workers. with an increase to $18 dollars next yearwhile employers with 25 or fewer workers would be $17 starting in January 2025.
If Proposition 32 is not approved, the minimum wage for all workers it would be about $16.50 per hour next year.
With Proposition 32, in 2026 the minimum wage for all California workers it would be $18 an hourand without the initiative it would be about $17 dollars per hour.
Keep reading: Two states have a minimum wage lower than the federal $7.25 per hour: is it possible?
The defenders of Proposition 32 assured that will help low-wage workers support their families in one of the most expensive states to live.
Opponents of the initiative said that the increase would represent a difficulty for companiesparticularly for small employers with low profit margins, so the cost would be passed on to consumers, which could lead to job cuts.
Minimum wages in cities
About 40 California cities have higher local minimum wages than state minimum wages. Since July, Los Angeles workers They receive a minimum hourly wage of $17.28 dollars per hour.
Keep reading: US states with the best and worst minimum wages in 2024
In West Hollywood, the minimum hourly wage is $19.08. However, some businessmen in the area are not in favor. According to a survey commissioned by the city council among 142 companies revealed that 42% of them said they had to lay off employees or reduce your work hours because of the ordinance.
In April, California fast food workers get pay raise to $20 an hour thanks to a law signed by Governor Gavin Newsom, who also approved a bill to gradually increase the pay of healthcare workers to $25 an hour by July 2026.
As a result, fast food prices increased by 3.7% after the increase took effect, while employment remained relatively stable, according to a study from the University of California at Berkeley.
Keep reading: Fast food rates in California rise, according to survey
However, Southern California franchises reported that They had to reduce their workers’ hours as a result of the salary increase.
Young people occupy positions with lower salaries
One argument against increasing the minimum wage is that These jobs are usually filled by students or younger workers.while they have the opportunity to access better-paying jobs.
A report from the California Legislative Analyst’s Office found that About half of low-wage workers were over 35 years old and more than a quarter were over 50 years old.
Keep reading: California fast food workers ask for more money
California’s largest low-wage occupation is home health and personal care aides, and More than half of low-wage workers are Hispanic.
Keep reading:
· Fast food workers in California see reduction in their work hours
· Minimum wage of $25 per hour for some workers in California does not start in July
· Budget deficit impacts salary increases for California health workers