Prop 32 explained: Raising California's minimum wage to $18 an hour

Living in California is expensive right now. Our minimum wage is $16 per hour. Prop 32 would raise that to $18 by 2026 across the state to cover basic needs. In the cheapest county in California, you would need to earn around $20 per hour. That is if you're single, have no kids and work full time, certain cities like San Francisco and L *** already have *** higher minimum wage and depending on what industry you work in, you might also be earning more like health care workers who have their minimum wage increase to $25 per hour this year. Still supporters say *** prop 32 would benefit at least 2 million workers including older adults having to support themselves and their families. But opponents say that it puts extra burden on businesses that are already struggling to make ends meet after the pandemic and could force them to raise prices, lay off staff or close altogether. Check out our other videos and go to KCR a.com.

Proposition 32 asks California voters to raise the state's minimum wage to $18 over the next two years, making it the highest minimum wage in the nation. For employers with 26 or more employees, wages would increase to $17 immediately and then $18 on Jan. 1, 2025. For employers with 25 or fewer employees it would increase to $17 on Jan. 1, 2025 and then $18 on Jan. 1, 2026. This would not apply to fast food workers, because state leaders raised the minimum wage to $20 an hour for that sector in April of 2024. Leer en español.Who supports it? A coalition of labor groups, Dolores Huerta and wealthy entrepreneur and anti-poverty activist Joe Sanberg have backed the measure and formed a campaign called Yes on the California Living Wage Act. "When more Californians earn a fair wage for their work, our entire economy does better," the campaign said in a statement. "Working people are better able to afford their rent, provide three meals per day for their kids, and all of that spending boosts the economies of our local communities. That boosted spending creates more jobs in our communities, which makes everyone better off." How much money has the supportive campaign raised? As of Sept. 9, the latest state campaign finance data showed it had raised $609,815. The only funders include Kevin De Leon's 2026 campaign for lieutenant governor with $600,000 and Sanberg providing the rest. Who opposes it? The California Restaurant Association, California Chamber of Commerce and the California Grocers Association are leading the campaign against Proposition 32. "The cost of living in California is too high. Prices are up more than 20% in the last three years for food, gas, utilities, healthcare, and clothing. Proposition 32 makes it even worse as it will increase costs on family-owned businesses who can least afford it and force small employers to increase prices for consumers to absorb the higher minimum wage," the groups said in a statement. "Looking at the new California fast food minimum wage law, fast food prices in California have gone up 7% in six months, the fastest in the nation. Some well-known 'value meals' now cost over 40% more in California than the rest of the country." How much money have opponents raised to fight it? As of earlier September, campaign finance data show opponents raised $65,000. Top funders include the California Grocers Association with $15,000, and the California Chamber of Commerce's political action committee with $15,000. Learn more here. For more information about the November election, including key issues and other races on the ballot, check out the KCRA 3 Voter Guide. Find more political news from our national team here.

This would not apply to fast food workers, because state leaders raised the minimum wage to $20 an hour for that sector in April of 2024.

Leer en español.

Who supports it?

A coalition of labor groups, Dolores Huerta and wealthy entrepreneur and anti-poverty activist Joe Sanberg have backed the measure and formed a campaign called Yes on the California Living Wage Act.

"When more Californians earn a fair wage for their work, our entire economy does better," the campaign said in a statement. "Working people are better able to afford their rent, provide three meals per day for their kids, and all of that spending boosts the economies of our local communities. That boosted spending creates more jobs in our communities, which makes everyone better off."

How much money has the supportive campaign raised?

As of Sept. 9, the latest state campaign finance data showed it had raised $609,815. The only funders include Kevin De Leon's 2026 campaign for lieutenant governor with $600,000 and Sanberg providing the rest.

Who opposes it?

The California Restaurant Association, California Chamber of Commerce and the California Grocers Association are leading the campaign against Proposition 32.

"The cost of living in California is too high. Prices are up more than 20% in the last three years for food, gas, utilities, healthcare, and clothing. Proposition 32 makes it even worse as it will increase costs on family-owned businesses who can least afford it and force small employers to increase prices for consumers to absorb the higher minimum wage," the groups said in a statement. "Looking at the new California fast food minimum wage law, fast food prices in California have gone up 7% in six months, the fastest in the nation. Some well-known 'value meals' now cost over 40% more in California than the rest of the country."

How much money have opponents raised to fight it?

As of earlier September, campaign finance data show opponents raised $65,000. Top funders include the California Grocers Association with $15,000, and the California Chamber of Commerce's political action committee with $15,000.

Learn more here.

For more information about the November election, including key issues and other races on the ballot, check out the KCRA 3 Voter Guide. Find more political news from our national team here.

Prop 32 explained: Raising California's minimum wage to $18 an hour

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