Title: California Legislature Approves Minimum Wage Hike for Health Care Workers, Awaiting Governor’s Decision
Date: [Insert Date]
California, USA – In a bid to address wage disparities and improve the livelihoods of health care workers, the California State Legislature passed a measure to raise the minimum wage for health care employees to $25 per hour. The bill now awaits Governor Gavin Newsom’s final decision.
Under the proposed legislation, the wage increase would encompass all individuals employed in health care facilities, including maintenance staff, food service workers, gift shop employees, medical coders, and nursing assistants. However, not all employees would receive an immediate raise.
The bill outlines a phased approach for minimum wage increases in different types of health care facilities. Large health care facilities with over 10,000 full-time workers and dialysis clinics would see their minimum wage rise to $23 per hour from 2024, followed by increases to $24 in 2025, and finally reaching $25 in 2026. Smaller health care facilities would experience slower wage growth, with urgent care clinics reaching $25 per hour by 2027, skilled nursing facilities by 2028, and other health care facilities not until 2028.
Rural hospitals and facilities serving higher percentages of Medicare and Medi-Cal patients would experience an even more gradual wage increase, with the wage floor rising to $18 per hour in 2024, eventually reaching $25 in 2033.
To address financial concerns faced by struggling health care facilities, the legislation includes a provision for a waiver program that would grant temporary relief from minimum wage increases. Additionally, local ordinances imposing higher minimum wage increases would be prevented for ten years until 2034.
The passage of the bill, known as SB 525, came late Thursday night during the final hours of California’s legislative session. The Assembly approved the bill with a 59-11 vote, while the Senate followed suit with a 31-9 vote, which largely divided along party lines with Republican lawmakers in opposition. Governor Newsom now has 30 days to either sign the bill into law or veto it.
Governor Newsom has expressed some reservations due to the state’s projected budget deficit of over $31 billion, indicating that he may veto certain bills approved by the Democrat-controlled legislature.
It is important to note that an earlier version of the bill estimated a cost of over $973 million annually to cover the increases in state-owned health care facilities. The revised version, which was ultimately approved, is still being assessed for its financial impact. Agreements made between SEIU California, a supporter of the measure, and health care industry groups representing hospitals and clinics are expected to lower the costs from the initial estimate.
The potential wage increase for health care workers has garnered support from various stakeholders, including the SEIU California, an early advocate for the $25 per hour minimum wage. However, critics argue that the measure may worsen California’s budget deficit and could have unintended consequences for the health care industry.
As the bill awaits Governor Newsom’s decision, stakeholders and observers will closely monitor the outcome and its implications for health care workers across the state.
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