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California voters rejected a ballot measure that would have raised the state’s minimum wage to a national high of $18 an hour by 2026, the Associated Press reported on Tuesday.

Minimum wage in California is currently $16 an hour in most industries, but $20 an hour for fast-food workers. Some cities and counties have higher minimum wages, including six where the minimum wage will be over $18 an hour as of this year.

Supporters of the legislation argued that the pay increase would have benefited an approximate two million workers, but opponents of the proposition said it would cause businesses to reduce jobs, further increase the high cost of living in the state, and result in higher taxes.

“With the economy and costs top of mind for many voters this election, that message appears to have resonated,” California Chamber of Commerce President Jennifer Barrera said in a statement.

Although voters rejected the broader increase to $18 an hour, California Gov. Gavin Newsom, a Democrat, signed a law last year that will eventually increase the minimum wage for healthcare workers in the state to $25 an hour.

Misty Severi is an evening news reporter for Just The News. You can follow her on X for more coverage.