Would SQ 832 make it more difficult for businesses to continue to claim tax breaks for the number of employees they have on government assistance programs?

Because wages claimable under the Work Opportunity Tax Credit only apply to first-year employees from target groups, all else being equal, businesses’ claimable credits would only decrease without hiring the same number of such employees annually; SQ 832-mandated wage increases would not significantly reduce the availability of such potential employees.

The WOTC incentivizes hiring from groups that have faced employment barriers, including SNAP recipients – who comprised 64% of WOTC certifications from 2022 – 2024 – veterans and felons.

Though SQ 832, which is on the June 16 ballot June 16, would increase the minimum wage to $12 per hour, with gradual increases to $15 by 2029, many SNAP beneficiaries would continue to meet the income criteria of below 130% the federal poverty level.

Seventy percent of SNAP recipients are full-time workers. Assuming 35 hour weeks, making $12 and $15 an hour falls below the current maximum gross monthly incomes for one-person and two-person households, respectively.