Californians rejected a measure that would have raised the state’s minimum wage to $18 an hour.
Over two weeks after Election Day, California has counted over 99% of the votes and revealed that a slim majority of 50.8% as of Wednesday voted against Proposition 32. This is the first time voters have rejected a wage raise in a state election.
The state already has a $16 minimum wage and a $20 minimum wage for fast-food workers. It was the effect of the fast-food workers’ wages that changed Californians’ minds, according to research firm Employment Policies Institute.
“Voters saw the devastating economic fallout of the $20 fast-food minimum wage law and, for the first time in state history, voted against a statewide minimum wage hike,” EPI Director Rebekah Paxton said.
EPI surveyed restaurants following the fast-food wage increase and reported that 98% had raised menu prices, 89% had reduced employee hours, and 70% had reduced staff or consolidated positions. These same respondents projected future increases in menu prices and decreases in employee hours and positions.
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This comes as voters rejected outlawing prison labor, with over 53% of the vote. It was another failed measure born out of the state’s reparations committee, which was established in 2020.
Voters instead enacted $10 billion bonds in clean energy and stronger penalties for those convicted of shoplifting and drug crimes. Both are anticipated to increase costs for the taxpayers and the state criminal justice system.