Minimum wage has been a hot topic of discussion in the United States, and President Joe Biden has made it clear that he wants to raise the federal minimum wage to $15. One state that is making significant progress in this regard is California, where an estimated 1 million fast food and healthcare workers are set to receive a major raise.
Earlier this week, a deal was announced between labor unions and industries in California that will result in a substantial increase in wages for workers. Under the new bill, most of California’s 500,000 fast food workers would be paid at least $20 per hour by 2024. This is a significant increase from the current minimum wage in the state, which is $15.50.
At the same time, another bill will raise the minimum wage for healthcare workers. About 455,000 workers employed at hospitals, dialysis clinics, and other facilities will see their salaries increase to at least $25 per hour over the next 10 years. It is important to note that this increase does not apply to doctors and nurses.
California is already known to have one of the highest minimum wages in the country, with only Washington, DC, and Washington state having higher minimum wages. However, these new bills will further elevate California’s position.
For fast food workers, Assembly Bill 1228 will increase the minimum wage to $20 per hour for workers at restaurants with at least 60 locations nationwide. There is only one exception to this rule, which applies to restaurants that make and sell their own bread, such as Panera Bread.
Healthcare workers will also see a significant increase in their minimum wage. Salaries will vary depending on the clinic. Employees at large healthcare facilities and dialysis clinics will have a minimum wage of $23 per hour next year, gradually increasing to $25 per hour by 2026. Rural hospital workers will have a minimum wage of $18 per hour next year, with annual increases until reaching $25 per hour in 2033. Community clinic employees will receive $21 per hour next year, increasing to $25 per hour by 2027. Other healthcare facilities’ workers will see their minimum wage increase to $21 per hour next year and reach $25 per hour by 2028.
These proposed bills must go through California’s state legislature and be signed into law by Governor Gavin Newsom. However, they have already received endorsements from both labor unions and fast food and healthcare industry groups, indicating a high likelihood of passage.
Supporters of the wage increases argue that it is a win for low-wage workers, as it will provide them with better financial stability and the ability to provide for their families. A study from the University of California-Berkeley Labor Center found that a little over three-fourths of health care workers in California are women, and 76% are workers of color. This highlights the impact these wage increases could have on marginalized communities.
It is also worth noting that the state assembly in California has voted to advance a proposal that would give striking workers unemployment benefits. This policy change could benefit Hollywood actors, writers, and Los Angeles-area hotel workers who have been on strike for a significant portion of this year.
While California is making strides in raising the minimum wage, it is important to consider the broader picture across the United States. Currently, 15 states have laws in place that make their minimum wages equivalent to the federal minimum wage of $7.25 per hour. Additionally, five states have no minimum wage laws, leaving workers in those states particularly vulnerable.
The debate over minimum wage continues to be a contentious issue, with arguments on both sides. While proponents of higher minimum wages believe it will address income inequality and provide sustainable wages, opponents argue that it could lead to job losses and negatively impact small businesses. As the discussion continues, it is clear that the effects of raising the minimum wage on the economy will be closely watched.