PROP
32

RAISES MINIMUM WAGE. INITIATIVE STATUTE.

 

OFFICIAL TITLE AND SUMMARY

PREPARED BY THE ATTORNEY GENERAL

  • California's minimum wage is currently $16 per hour. This measure increases that minimum, as follows:
    • Employers with 26 or more employees would pay $17 hourly for the remainder of 2024 and $18 hourly beginning on January 1, 2025.
    • Employers with 25 or fewer employees would pay $17 hourly beginning January 1, 2025, and $18 hourly beginning January 1, 2026.
  • Thereafter, as existing law provides, the minimum wage annually adjusts for inflation.
  • In addition to the generally applicable minimum wage described above, current laws establish a higher minimum wage in specified industries. This measure does not amend those laws.

SUMMARY OF LEGISLATIVE ANALYST'S ESTIMATE OF NET STATE AND LOCAL GOVERNMENT FISCAL IMPACT:

  • State and local government costs could increase or decrease. This change likely would not exceed the high hundreds of millions of dollars annually.
  • State and local tax revenues likely would decrease. This revenue loss likely would not exceed a few hundred million dollars annually.