California voters reject Prop 32, raising the state's minimum wage to $18

California voters have rejected Prop 32, which would have raised the state's minimum wage from $16 to $18.

With 100% of the ballots tallied, the measure was rejected by a 0.8% margin (50.8 - 49.2), according to the California Secretary of State's office. The total vote difference for the proposition was 234,146.

Prop 32 would have immediately raised the minimum wage for employers with 26 or more employees to $17, with a dollar increase by the new year. For employers with 25 or fewer employees, the minimum wage would have increased to $17 on January 1, 2025, and $18 on January 1, 2026.

However, minimum wage in California will still be increasing to $17 on January 1, 2026, even with Prop 32 failing.

Opponents, including the California Chamber of Commerce, said Prop 32 would have increased costs, led to higher taxes and pushed businesses to cut jobs.

"With the economy and costs top of mind for many voters this election, that message appears to have resonated," said Jennifer Barrera, the chamber's president and CEO.

Proponents estimated that the measure would have benefited 2 million workers, including hotel and grocery employees.

"Proposition 32's failure to pass is disappointing for all Californians who believe that everyone who works should earn enough to support their families," said Kathy Finn, president of UFCW 770, a Southern California union representing nearly 30,000 workers in various sectors.

The current minimum wage rates are $16 per hour for most workers and $20 in the fast-food sector. The health care sector will eventually see its minimum wage reach $25 per hour under a law that Democratic Gov. Gavin Newsom signed last year and took effect in October.

The Associated Press contributed to this report.