California’s minimum wage would rise to $18 by 2025: Here’s what needs to happen
Voters in the US will not just be voting for politicians on November 5. In some states like California, there are also ballot measures to consider.
The US presidential election is taking place on November 5. In addition to choosing the next person who will occupy the White House, in some states, citizens will be voting for or against several ballot measures. For example, California voters must choose whether or not to raise the minimum wage to $18 per hour by 2026.
California voters will decide on Proposition 32, a bill to gradually raise the state’s minimum wage until it reaches $18 an hour for all workers by 2026.
California’s minimum wage would rise to $18 by 2025: Here’s what needs to happen to make it happen
If a majority of Californians vote in favor, the measure passes. If approved, the minimum wage would increase to $18 per hour on January 1, 2025 for employers with 26 or more workers. On the other hand, employers with 25 or fewer workers would be required to pay a minimum wage of $18 starting January 1, 2026.
As for the following years, the proposal states that, starting in 2027, the increase in the minimum wage will be based on changes in the Consumer Price Index for urban wage earners and administrative workers (CPI-W).
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This proposal has generated controversy due to the potential consequences of its passage. Although many are in favor of it due to the rising cost of living in the state and the need for higher wages, opponents of the measure claim that it would be difficult for businesses to implement, particularly small employers.
The cost of raising the minimum wage could be passed on to consumers and lead to job cuts they argue.
This is what the minimum wage will look like in California if the $18 per hour proposal is not approved
If the majority of citizens vote against the measure, the minimum wage of $18 per hour would not be approved and the current law would apply.
Current law provides that the minimum wage in California may increase each year by 3.5 percent or by the rate of change in the averages of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the prior year to the current year, whichever is less, unless those averages are negative.
This year, the CPI-W comparative data showed changes of 3.18 percent, so the minimum wage in California will increase to $16.50 as of January 1, 2025.
It’s important to note that the minimum wage is different for specific industries. For example, fast food workers earn a minimum wage of $20 per hour. Additionally, there are some cities and counties that set their own amounts.