California Legislature Approves Measure to Raise Minimum Wage for Health Care Workers
In a significant move, the California Legislature has approved a measure to raise the minimum wage for health care workers to $25 per hour. The bill, known as SB 525, covers all employees of health care facilities, including cleaning and maintenance staff, food service workers, gift shop workers, medical coders, and nursing assistants.
However, not all workers will see an immediate raise, as different timelines have been set for various types of health care facilities. Large health care facilities and dialysis clinics will raise their minimum wage to $23 per hour starting in 2024, followed by incremental increases to $24 and $25 in the following years.
Urgent care clinics will reach a $25 minimum wage by 2027, while skilled nursing facilities and other health care facilities will not reach $25 until 2028. On the other hand, rural hospitals and facilities serving higher rates of Medicare and Medi-Cal patients will have a slower phase-in. They will start with a minimum wage of $18 per hour in 2024, gradually increasing to $25 by 2033.
To address concerns of health care facilities in financial distress, the bill includes a provision allowing them to temporarily delay the minimum wage increases. Additionally, local ordinances that aim to impose higher minimum wages will be blocked for 10 years until 2034.
The bill passed with a 59-11 vote in the Assembly and a 31-9 vote in the Senate, mostly along party lines. Now, Governor Gavin Newsom has 30 days to either sign the bill into law or veto it. However, given the state’s budget deficit, Newsom has expressed concerns and may veto certain bills.
It is worth noting that the amended version of the bill is expected to have a lower cost compared to the previous version, which was estimated to exceed $973 million per year. The support of SEIU California and agreements with health care industry groups representing hospitals and clinics have played a crucial role in advancing this measure.
If signed into law, the minimum wage increase for health care workers in California will undoubtedly have a far-reaching impact, prioritizing fair compensation and acknowledging the importance of their valuable contributions to the health care system.
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