California has an affordability crisis, with millions of people struggling as the cost of housing, groceries, gas, utilities, child care and other necessities rise. The challenge is particularly acute for restaurant, service and retail workers and others who earn the minimum wage.
Proposition 32 on the November 5th ballot would help by providing the lowest wage in the state. The measure would increase the state’s $16-an-hour minimum wage – which is set to rise to $16.50 on January 1 under current law – to $18 on January 1 for companies with 26 or more workers, and $17 for companies with 25 or less workers, who will have until 2026 to start paying $18. Under current law, the minimum wage, which increases with inflation, will reach $18.20 in 2029; Proposition 32 would increase that to about $19.30 that year.
It’s a reasonable, narrow measure that focuses on workers who need a boost, and California voters should support it.
Between 11% and 17% of California’s 18 million workers will see a raise under Proposition 32, according to supporters. But the impact for employers and workers will be mild in many large cities of California, which has set itself, the minimum wage is higher than the state. For example, the Los Angeles minimum wage increased to $17.28 on July 1. And some cities, such as San Francisco and West Hollywood, have exceeded $18 an hour.
These changes will be more important in communities where local officials have not acted to boost local wages. This includes low-cost inland areas such as the Inland Empire and the Central Valley, but also some of the most expensive areas in the country, including Marin, Monterey, Orange, Santa Barbara and Santa Cruz counties where only one city – Novato – has a local area. minimum wage, accordingly new report by the nonpartisan Legislative Analyst’s Office.
Earning a living wage shouldn’t be a privilege reserved for people who live in the right ZIP Code, and raising the state minimum wage is fairer than patchwork rules for different regions and industries.
Trade unions have achieved higher minimums for certain sectors. Fast-food restaurant workers have earned at least $20 an hour, and health care workers’ wages have risen to $25. But having different minimum wages based on location or type of work can be problematic for employers and unfair to workers left behind.
Proposition 32 was funded by Los Angeles investor and anti-poverty advocate Joe Sanberg. He and other advocates, including the California Federation of Labor and restaurant and service worker organization One Fair Wage, say raising the minimum wage is the easiest way to help struggling workers afford rent, groceries and other basic necessities. He also notes that a low minimum wage subsidizes businesses that don’t pay workers enough to survive in our country, shifting those costs to taxpayer-funded social safety net programs.
Opponents, including the California Chamber of Commerce and the California Restaurant Assn., argue that workers have benefited from years of wage increases. according to the 2016 law which includes automatic cost of living adjustments. Opponents argue that forcing the minimum wage higher will reduce business profits and force prices to rise, reduce working hours and cause some businesses to close.
But there’s no evidence that nearly a decade of gradual minimum wage increases has harmed California’s economy. Nor does it result in mass job cuts. On the contrary, given the widespread post-pandemic staffing shortages, higher wages actually make things easier for employers fill job vacancies and keep workers.
It’s true that the money for higher labor costs has to come from somewhere, but past research shows that consumers, not businesses, are paying for higher prices. But it’s important to recognize that while wage increases can lead to inflation, they also increase the purchasing power of workers who are most affected by price increases and need all the help they can get.
The truth is, even as proponents acknowledge, that this higher minimum wage is still far from a living wage. Proposition 32 also doesn’t fix the underlying problems, particularly the housing shortage, that make California such an expensive place to live. But a slightly bigger paycheck would be life-changing for millions of people struggling to make ends meet. That’s enough reason for voters to support Proposition 32.
