California voters rejected a ballot measure that would have raised the state minimum wage to $18 per hour, making it the highest minimum wage in the country, according to a report from the Associated Press.
Opponents of the proposed minimum wage hike argued that it would have increased costs, led to higher taxes, and pushed businesses to cut jobs. Among the opponents of the wage hike was the California Chamber of Commerce.
Proponents of the bill argued the increase in wages would help an estimated 2 million individuals who work in the grocery and hotel industries.
“Proposition 32’s failure to pass is disappointing for all Californians who believe that everyone who works should earn enough to support their families,” the president of union UFCW 770 told the AP.
Current minimum wage rates in the state are $16 per hour for most workers. However, in April, Gov. Gavin Newsom mandated that fast-food workers be paid a $20 per hour minimum wage. The state has seen a litany of fast-food giants closing stores and hiking prices as a result of the minimum wage increase.
For example, Rubio’s California Grill closed 48 of its nearly 134 locations at the end of May. The fast food joint cited the “rising cost of doing business” in the state as the main reason for shuttering stores. The company ultimately filed for bankruptcy in June.
The minimum wage hike also forced chains like McDonald’s, Burger King, and In-N-Out Burger to increase prices to offset the costs of higher wages. Ultimately, the consumers of once-affordable fast-food chains are paying the price for the increased minimum wage.
California Governor Gavin Newsom argues the economy in his state is thriving.
“What’s good for workers is good for business, and as California’s fast food industry continues booming every single month our workers are finally getting the pay they deserve,” Newsom said.
