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Health care workers in California may get a raise after the state legislature approved a measure to raise their minimum wage to $25 an hour, now on Gov. Gavin Newsom’s desk.
Under the bill, increasing the minimum wage to $25 an hour would cover all health care workers, including cleaning and maintenance workers, food service workers, gift shop workers, medical programmers and nursing assistants — although not everyone would see an immediate increase.
Large health care facilities with more than 10,000 full-time employees and dialysis clinics would raise their minimum wage to $23 an hour starting in 2024, followed by increases to $24 in 2025 and $25 in 2026. The minimum wage increases would come more slowly in small ones health facilities; The minimum wage in emergency clinics would rise to $25 an hour by 2027, while skilled nursing facilities and other health care facilities would not reach $25 an hour until 2028.
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California state lawmakers have passed a measure that would raise the minimum wage for health care workers to $25 an hour. The measure now awaits Gov. Gavin Newsom’s signature. (Visions of America / Joe Sohm / Universal Images Group / File / Getty Images)
The minimum wage requirement would be phased in even more slowly at rural hospitals and facilities that serve higher numbers of patients enrolled in Medicare and Medi-Cal, California’s Medicaid program. There, the wage floor would rise to $18 an hour in 2024 and gradually increase to $25 in 2033.
The bill also includes a provision requiring the state to establish a waiver program by next year to allow health care facilities experiencing financial hardship to temporarily defer minimum wage increases. It would also block local ordinances that require higher minimum wage increases for 10 years through 2034.
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California’s SEIU was one of the first proponents of raising the minimum wage for health care workers to $25 an hour. (Myung J. Chun / Los Angeles Times via Getty Images / File)
Lawmakers approved the bill, known as SB 525, Thursday night in the final hours of the California legislative session. The Assembly voted 59-11 to approve the bill, while the Senate followed suit with a vote of 31-9, generally following the party line with Republican lawmakers opposed. By passing SB 525, Newsom now has 30 days to sign the bill or veto the measure.
Newsom has warned that he could veto some of the bills approved by the Democratic-controlled Legislature because of the state’s budget deficit, which is expected to top $31 billion.
An earlier version of the bill estimated it would cost California more than $973 million a year to cover the cost of increases at state health facilities. This figure did not take into account what was described as a “definitely significant” but unspecified amount to comply with wage parity requirements for non-healthcare workers at University of California System facilities.
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The cost of the amended version of the bill, which was approved by both chambers of the Legislature on Thursday, is still being calculated, but is expected to be lower than the original estimate given revisions made following agreements between SEIU California, which supported the measure and healthcare industry groups representing hospitals and clinics.