What happened?

On November 5, 2024, California voters rejected Proposition 32, which would have increased the minimum wage for California workers.

Quick Summary:

• California Proposition 32 aimed to raise the state’s minimum wage to $18 per hour by 2025 and adjust it annually for inflation, but it was rejected by the voters in the November 2024 elections, with 51.5% of voters opposing it.

What are the details?

• Currently, California’s minimum wage is $16 per hour, making it one of the highest in the nation and more than double the federal minimum wage.

• The measure proposed different timelines for implementation based on the employer’s size:

• Supporters argued that the increase was necessary to help workers afford California’s high cost of living, while opponents claimed it would lead to job losses and higher prices.

Business Considerations

• Although the proposition was rejected, employers should prepare for the upcoming minimum wage increase of $16.50 per hour.

• Exempt employee wages are two times the minimum wage, therefore beginning January 1, 2025, the minimum salary threshold will increase to $64,640.

Source References

• California to Vote on Proposition 32 on November 5, 2024 (VensureHR)
• CA Proposition 32: RAISES MINIMUM WAGE. INITIATIVE STATUTE.
• CA Proposition 32 Voting Results

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