Support lags for Prop 32, California’s latest minimum wage proposal

California’s Proposition 32 would raise the statewide hourly minimum wage from $16 to $18, if approved by voters this month. Businesses with more than 25 employees would have to pay workers at least $18 per hour starting in January. Smaller employers would start by paying a minimum of $17 next year before increasing  to $18 the following year.

The state’s minimum wage has increased steadily over the past decade. Lawmakers approved a $15 minimum wage in 2016 which marked a $5 leap for minimum wages, though that baseline wasn’t established until 2022.

While wage increases usually have widespread support in California, a recent poll from the Public Policy Institute of California shows 54% of likely voters say they’ll reject the measure. 

Joe Sanberg is an anti-poverty advocate who led the effort to qualify Prop 32 for the ballot.

“When you put more money in the pockets of consumers, they spend more money at local businesses, which creates a positive multiplier effect across the whole economy and we all end up doing better,” Sanberg said.

But many employers remain opposed to Prop 32. Jot Condie heads the California Restaurant Association and said the state’s recent string of wage hikes has reached a tipping point. 

“To put another two dollar an hour increase on top of a decade long run of minimum wage increases, this is going to have a different result than in years past,” Condie predicted.

He added that many restaurants are still recovering from pandemic losses.

“Another two dollars in year 11 is going to be a huge burden for restaurant owners,” Condie said. “And certainly it's going to be a huge burden for restaurant customers because the inevitable result here will be price increases.”

In California, 41 cities and counties have already raised their minimum wages above $16 per hour. A handful have even raised local wages above the $18 proposed in Prop 32. The City of West Hollywood has an hourly minimum wage of $19.08. In Emeryville, it’s $19.36. 

The state  has also approved some industry specific wage increases in recent years. Lawmakers passed Assembly Bill 1228 last year which established a $20 per hour minimum wage for fast food workers. They also passed Senate Bill 525 to raise wages for certain healthcare employees.

Proponent Joe Sanberg said California’s rising prices means wages should increase, too.

“Inflation's gone up. CEO pay has gone up. Corporate profit shares have gone up, but wages haven't gone up,” Sanberg said.

Joe Sanberg and a ballot measure committee controlled by Kevin de León’s Lieutenant Governor campaign have raised $902,815 in support of Prop 32. Opponents, including California’s restaurant industry, grocery industry, and other employers, have contributed $722,936 against it, according to the Secretary of State’s Office.