California voters have rejected Proposition 32, also known as the Living Wage Act. The measure aimed to increase the state minimum wage to $18 per hour. It proposed immediate wage hikes to $17 for larger employers (26+ employees) and $18 by January 1, 2025, while smaller businesses (25 or fewer employees) would follow a delayed timeline, reaching $18 by 2026.

Advocates, led by entrepreneur Joe Sanberg, supported the measure to help essential workers and single parents manage California’s high living costs. Sanberg argued that as companies raise prices, wages must also increase to ensure workers can afford necessities.

Opponents, including the California Restaurant Association and California Chamber of Commerce, warned that small businesses would be forced to raise prices, fueling inflation and making life more expensive for working families. This would worsen the financial challenges of small businesses already burdened by California’s stringent labor laws.

The failure of Prop 32 leaves the recently enacted $20 minimum wage for fast-food workers, effective April 1, 2024, as a key focus of California’s ongoing wage debate.