California voters rejected Proposition 32, which proposed that the state gradually increase the statewide minimum wage to $18 an hour, NBC News projected Wednesday.
With more than 90% of the ballots counted, the no votes narrowly led the tally with nearly 51 % of the votes, compared to 49% of the votes that supported the increase of the minimum wage.
The state ballot measure would have required employers with 26 or more workers to raise wages to $17 an hour for the remainder of the year, then increasing it to $18 an hour, beginning on Jan. 1, 2025.
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Prop 32 was heavily backed by labor unions while opposed by business groups who said it would disproportionately affect local employers.
California became the first state in the nation to approve a $15 statewide minimum wage. Just last year Californians also raised fast food wages to a minimum $20 an hour, and medical staff to $25.
