Ballot Measures Breakdown:
California

In recent years, significant shifts in employment laws have paved the way for ballot measures addressing minimum wage adjustments and paid sick leave requirements. GovDocs is watching these ballot measures and will bring you a series of blogs for the remainder of this month providing details on which states have similar ballot measures to be decided in the November election.   

Next in the series is California’s minimum wage ballot measure.  

California Minimum Wage Ballot Measure

California’s Proposition 32 (Prop 32) is a ballot measure set for the November 5th general election.  California voters, per the Official Voter Information Guide, will get to decide the following:  

• ✅ A YES vote on this measure means: The state minimum wage would be $18 per hour in 2026. After that, it would go up each year based on how fast prices are going up.   
• ❌ A NO vote on this measure means: The state minimum wage likely would be about $17 per hour in 2026. After that, it would go up each year based on how fast prices are going up. 

Proposition 32 would amend California’s labor code with a new minimum wage increase schedule. For large employers with 26 or more employees, the minimum wage would increase to $17.00 for the remainder of 2024. Then on Jan 1, 2025, the minimum wage for large employers would increase again to $18.00 per hour. For small employers with 25 or fewer employees, the minimum wage would increase to $17.00 on Jan 1, 2025. It would rise again to $18.00 on Jan 1, 2026.

Each year thereafter, the state minimum wage would be adjusted based on inflation for all employers. If Prop 32 does not pass, California’s minimum wage would increase as previously announced, or to $16.50.  

What happens if California voters approve Prop 32?

If the voters approve Prop 32 on election day, the $17.00 minimum wage for large employers would not take immediate effect in the Golden State. Under California’s Constitution, a ballot measure “takes effect on the fifth day after the Secretary of State files the statement of the vote for the election at which the measure is voted on,” which means the $17.00 rate would likely take effect in December 2024. Even with the delay, this leaves a short period of time for employers to prepare for the minimum wage increase.  

Prop 32 would significantly impact the minimum wage landscape throughout the state, especially at the local level. There are currently 38 cities and 2 counties with a minimum wage higher than the current state minimum wage of $16.00. If Prop 32 passes and the $18.00 state minimum wage for large employers takes effect, potentially over half of these local rates would be lower than the state. In addition, the salary threshold for exempt employees, which is tied to the state minimum wage, would also go up. As for minimum wage posters, some city and county posters may need to be taken down while the state minimum wage poster and wage orders would need an update.   

Conclusion

With Prop 32 looming as we get closer to the November 5th general election, employers should evaluate and prepare their locations for potential changes to the minimum wage landscape in California. In order to track these changes and ensure pay accuracy, a robust online solution like GovDocs Minimum Wage is key to accurate minimum wage rate management for multi-state employers.   

Now that Alaska, Nebraska, and California’s ballot measures have been covered, keep an eye out for more Employment Law News Blogs this month detailing the remainder of the minimum wage and paid leave ballot measures.