SACRAMENTO, Calif. — A proposed ballot initiative in California aimed at increasing the minimum wage to $18 per hour by 2026 has been turned down by voters, which would have made it the highest minimum wage in the nation.

Opponents of the measure, including representatives from the California Chamber of Commerce, argued that such an increase would raise operational costs for businesses, lead to higher taxes, and potentially result in job losses.

“With the economy and expenses being a major concern for many voters this election, our message seems to have resonated strongly,” stated Jennifer Barrera, the chamber’s president and CEO.

Supporters of the measure believed it would have positively impacted around 2 million workers, particularly those in the hotel and grocery sectors.

“The defeat of Proposition 32 is disheartening for all Californians who advocate that every worker should earn a wage sufficient to support their families,” remarked Kathy Finn, president of UFCW 770, a union in Southern California that represents nearly 30,000 workers across various industries.

Currently, the minimum wage stands at $16 per hour for most jobs and reaches $20 per hour within the fast-food industry. Additionally, the healthcare sector is set to move towards a minimum wage of $25 per hour, a law enacted by Democratic Governor Gavin Newsom that came into effect last October.

In 2022, Hawaii enacted legislation that will methodically increase its minimum wage to $18 an hour, but that increase will not be implemented until 2028.

California was the pioneering state in 2016 to legislate a $15 hourly minimum wage, following the initiative signed by then-Governor Jerry Brown, who is also a Democrat. As of this year, approximately 40 cities and counties within California have established minimum wages that exceed the statewide level, with six areas mandating minimums that are above $18 per hour.