A look at Prop 32: California considers raising minimum wage to $18

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Minimum wage not enough for Bay Area rent

Living in the Bay Area is costly. A new report shows that minimum wage workers would need more than one job to afford rent in the region.

California's Proposition 32 will let voters decide whether to increase the minimum wage to $18.

Currently, the state's minimum wage stands at $16 per hour for most workers and $20 per hour for fast food workers, among the highest in the U.S.

If passed, Proposition 32, also known as the Living Wage Act, would require employers with 26 or more employees to raise wages to $17 immediately and then to $18 on Jan. 1. For employers with 25 or fewer employees, the increases would be delayed, rising to $17 on Jan. 1, and reaching $18 in 2026.

A yes vote on Proposition 32 means setting the statewide minimum wage at $18 per hour for all workers by 2026. A no vote would result in a minimum wage of $17 per hour in 2026.

Who supports Proposition 32?

Advocate and entrepreneur Joe Sanberg, who championed the ballot measure, believes that raising the minimum wage would allow essential workers and single mothers to manage California's living costs. He argued that with companies increasing the prices of goods, workers would be able to afford their basic needs.

Who's against Proposition 32?

The California Restaurant Association, California Chamber of Commerce, and California Grocers Association oppose the minimum wage increase. They argue that Proposition 32 would compel small businesses to hike prices, contributing to inflation and elevated living costs, ultimately harming working families.