On February 18, 2021, a rally was held to celebrate the California Labor Commissioner’s decision mandating a McDonald’s franchise to reinstate and compensate employees who had participated in a strike for COVID-19 protections.
In November, voters in at least three states will decide on raising state-level minimum wages. According to Sebastian Martinez Hickey, a state economic analyst at the Economic Policy Institute, Alaska, Missouri, and California are expected to pass these ballot measures, potentially resulting in higher wages for workers. Since 2014, 12 states have successfully increased their minimum wage through ballot measures. In many states, state-wide ballot initiatives remain the most viable option due to stalled efforts by conservative legislatures to increase wages. At the same time, voters in Arizona will evaluate a proposal to reduce the minimum wage for tipped workers.
In Alaska, voters will consider Ballot Measure No. 1, which aims to raise the state’s minimum wage to $15 per hour by 2027, with future adjustments based on inflation. The proposal outlines a phased increase: $13 in 2025 and $14 in 2026, from the current minimum of $11.73. If passed, about 30,800 Alaskan workers would see their earnings rise. Additionally, employees could accrue paid sick leave based on company size. Joelle Hall, President of the Alaska AFL-CIO, supports the measure, suggesting it benefits both workers and businesses by encouraging workforce retention and enabling workers to better afford essential needs. Conversely, Kati Capozzi, CEO of the Alaska Chamber, expressed opposition, citing potential harm to small businesses due to Alaska’s seasonal economy.
In Missouri, Proposition A proposes increasing the minimum wage to $13.75 by January 2025 and $15 by 2026, with future adjustments for inflation. This measure also includes provisions for paid sick leave. Richard von Glahn, campaign manager for Missourians for Healthy Families and Fair Wages, underscored the importance of the proposal, emphasizing the need for workers to choose between health needs and financial obligations.
California’s Proposition 32 seeks to increase the state’s minimum wage to $18, up from $16, with implementation varying by employer size. Larger companies would need to adjust wages by 2025, while smaller businesses would have until 2026. The Legislative Analyst’s Office in California predicts that this measure could lead to modest cost increases for businesses, which may then trickle down to consumers. The high cost of living in California, where a living wage is estimated at $27.32 per hour, underscores the need for this wage adjustment.
Massachusetts and Arizona are presenting contrasting proposals for minimum wages affecting tipped workers. Massachusetts’ Question 5 would phase out its lower tipped minimum wage by 2029, aligning it with the standard rate. Meanwhile, Arizona’s Proposition 138 suggests allowing businesses to pay tipped workers 25% less than the minimum wage, provided their total earnings exceed the minimum wage by a certain margin.
Geraldine Miranda, from The Arizona Center for Economic Progress, criticized Arizona’s measure, predicting an average annual income loss of $1,400 for tipped workers if passed. Steve Chucri, President and CEO of the Arizona Restaurant Association, supported the measure, viewing it as a safeguard against adopting policies similar to those in California.
