California’s minimum wage increase for 2025: results and decision

In addition to selecting the nation’s next president, Donald Trump for part II, along with some Senate and House seats in Congress, the California government included several proposals on the ballot, including one to raise the state’s minimum wage.

California is one of 30 states in the country with wages higher than the federal minimum of $7.25 per hour. The most recent increase took place on January 1, 2024, when the minimum wage rose to $16 per hour. For the 2025 increase, California workers had two options.

The first option was for the minimum wage to rise according to existing legislation, which would mean a 3.5 percent increase. The second option, tied to Proposal 32, would give workers a $2 raise.

How much will California’s minimum wage rise by 2025?

California voters have made a decision on Proposition 32, a legislative initiative to gradually increase the state’s minimum wage until it reaches $18 per hour in 2026.

To determine whether it will pass, citizens voted either for or against it. If approved, starting on January 1, 2025, employers with 26 or more workers would be required to pay a minimum wage of $18 per hour. For employers with 25 or fewer employees, the minimum wage would reach $18 on January 1, 2026.

For subsequent years, the proposal states that, beginning in 2027, the minimum wage adjustment would be based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

Polling stations closed at 8:00 p.m. on Tuesday, and the vote count began. If the majority of Californians vote in favor, the measure will pass, and the minimum wage will increase. If the majority vote against, the proposal will not pass, and the minimum wage will continue to be calculated under current law.

With 54% of the votes counted, the results are as follows:

*This will be updated as the results are shared.

What is the current California minimum wage law?

Current legislation stipulates that the minimum wage in California may increase annually by either 3.5% or by the rate of change in the average Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) between the previous year and the current year, whichever is lower, unless those averages are negative.

This year, the CPI-W comparison data showed a change of 3.18 percent, so under this legislation, California’s minimum wage would rise to $16.50 starting on January 1, 2025.

It is important to note that the minimum wage varies across specific industries. Additionally, some cities and counties set their own rates.