COMMENTARY, NFIB California Calls on Voters to Reject Proposition 32

The representative association for the employers most likely to pay a starting wage today called on voters to reject Proposition 32, the ballot initiative that would raise California's minimum-wage rate to $18 an hour.

"Progressives have once again proven their utter failure to grasp Main Street economics in the Golden State, advancing deeply flawed policy that will shutter even more small businesses and employment opportunities for struggling Californians," said John Kabateck, California state director for the National Federation of Independent Business (NFIB), the nation's largest and leading small business association.

One need look no further, according to Kabateck, than California's own backyard to cite tragic wakes of destruction left by recent minimum wage hike decisions imposed upon various cities and specific industries:

• Since the April 1, 2024, implementation of the $20-per-hour minimum wage applied to fast-food-franchise businesses, nearly 9,500 entry-level jobs have been eliminated; restaurants have hiked prices by an average of 8%; and many operators are rapidly switching to kiosks and robotics.

• Governor Newsom has ruled at least once to delay the July 1, 2024, implementation of a $25-per-hour minimum wage phase-in on health-care facilities – including all small business vendors operating within those campuses – citing the cost impact it would have on California's already deep-red $78 billion budget.

• The City of West Hollywood, which has witnessed a 39% reduction in jobs because of their recent minimum wage increase to $19.07 (the highest standard wage rate in the nation) has delayed yet another minimum wage increase to $19.61 per hour out of concern for jobs and the economy in the city.

"Forgive my fear of history repeating itself should Prop 32 pass, but history will, indeed, repeat itself," added Kabateck. "The last thing already struggling and fragile small employers can grapple with right now is another giant brick of uncertainty plummeting them down a deeper hole – and yet this terrible minimum wage initiative will do precisely that. Californians deserve better than flashy sound bite policy that will render our state an even bigger anti-business laughingstock, if that is at all possible, which is why we trust and hope all voters will reject this absurd measure."

Further information on who exactly earns the minimum wage and what it does and does not do can be found in this one-page memorandum and more about the California minimum wage rate can be found on this one page of bullet points.

Keep up with the latest on California small-business news at http://www.nfib.com/california or by following NFIB on Twitter @NFIB_CA or on Facebook @NFIB.CA.