Yes on Proposition 32
Raise Minimum Wage
What is it?
Proposition 32 will raise California's minimum wage from $16 to $18 per hour by 2026.
San Francisco's minimum wage is already set to $18.67, so it will have no direct impact on San Franciscans.
This year, California saw two minimum wage increases – one that raised the minimum wage for fast food workers to $20 per hour, and another that is raising the minimum wage for low wage health workers to between $23 and $25 an hour. Those employees will retain their higher minimum wages even if Prop 32 passes.
Existing law already increases minimum wage in step with inflation, but it caps yearly increases at 3.5% even if inflation is higher. Indeed, the past few years have had very high inflation, meaning that minimum wage has not kept up with the cost of living:
| Year | California Inflation |
|---|---|
| 2021 | 4.3% |
| 2022 | 7.4% |
| 2023 | 3.9% |
| 2024 | 3.3% |
Source: California Department of Finance
On January 1, 2022 the California minimum wage for employers with 26 or more employees was $15 per hour. Had that wage kept up with inflation, the minimum wage on January 1, 2025 would have been $17.29 instead of $16.56. Prop 32 would raise the minimum wage to $18 per hour on that date, and on January 1, 2026 for employers with 25 or fewer employees.
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Fiscal impacts
Prop 32 will have varied fiscal impacts. Workers who earn minimum wage will see a pay increase, which will likely lead to increased consumer spending. However, businesses that employ minimum wage workers will see increased labor costs, which may lead to higher prices for goods and services. However, the nonpartisan Legislative Analyst's Office estimates that the "overall price increase from Proposition 32 likely would be smaller than one-half of 1 percent." The LAO also concluded that modest increases would likely have minimal impact on statewide employment levels.
Economists are broadly in agreement that raising the minimum wage has a positive effect on the economy. A 2019 study found that raising the minimum wage increases the earnings of low-wage workers and reduces poverty. For a short, yet detailed, explanation of these positive effects, see "Why $15 minimum wage is pretty safe" or "The minimum wage pushback," both by Noah Smith.
- See "Fiscal Effects" section of the Legislative Analyst's Office report (PDF)
Why is this on the ballot?
According to Article II, Section 8 of the California Constitution, citizens may introduce statutes (laws) by collecting signatures (5% of the votes cast in the most recent Governor's race). The statute must then be approved by voters with a simple majority of 50% + 1.
The campaign, initiated by Joe Sanberg, the founder of a banking startup, was originally intended for the 2022 ballot. Sanberg has invested $10.8 million into the PAC supporting this ballot measure.
- Proponent: Joe Sanberg
- Placed on ballot by: Paid signature gathering
Why vote Yes?
Simply put: workers' wages haven't kept up with inflation.
Prop 32 will help Californians outside of San Francisco who are struggling with high inflation and stagnant wages. California already indexes minimum wage to inflation, but it caps the yearly increase at 3.5%, which is less than actual inflation workers have seen. Inflation has outpaced minimum wage increases every year since 2021, leaving workers struggling to pay their rising bills.
Since San Francisco's minimum wage is already set to $18.67, this measure will have no direct impact on San Franciscans.
Earlier this year, Assembly Bill 1228 came into effect on April 1st, raising the minimum wage for fast-food workers to $20 per hour. Another adjustment, expected to be effective by October 15th, will increase the minimum wage for the state's lowest-paid health workers to between $23 and $25 an hour.
While Prop 32 might not affect San Franciscans directly, it helps Californians across the state whose wages haven't kept up with high inflation. Vote YES on Prop 32 to support a fair and equitable minimum wage for all Californians.