After implementation was delayed in June, California healthcare workers will begin to see minimum wage increases Oct. 16, according to a letter from the state's Department of Health Care Services.
Gov. Gavin Newsom signed a bill last year to gradually increase the state's minimum wage for healthcare workers to $25 per hour by June 2033. Implementation was pushed back to July 1 after Mr. Newsom signed a separate bill in May to address budget concerns.
In June, lawmakers agreed to delay the deadline to at least Oct. 15. A letter sent to the Legislature from California's health department on Oct. 1 said the wage increases will begin Oct. 16.
The June deal specified that raises could take place between Oct. 15 and Jan. 1, and their rollout date was dependent on the state collecting more tax revenue than what was expected or by securing federal funding through collecting data, CalMatters reported Oct. 1.
Although the deadline was pushed back, some hospitals began raising pay earlier this year.
Oakland-based University of California said in May that it would begin increasing minimum wages June 1. Designated employees saw raises to $23 per hour then, and will see increases to $24 per hour in June 2025 and to $25 per hour in June 2026, according to the university.
Employees of county-owned facilities will see raises in January, according to an Oct. 2 news release from the Service Employees International Union California shared with Becker's.
Workers at rural and safety-net hospitals will see raises to $18 per hour, though some will not see $25 per hour until 2033, CalMatters reported.
A UC Berkeley Labor Center report from 2023 found that 75.4% of workers who would receive raises are women and 76% are people of color.
In total, about 426,000 workers across the state are expected to see raises. Workers at medical groups with fewer than 25 physicians are excluded from the new minimum wage requirements.
The law could cost the state $1.4 billion in the first six months, the California Department of Finance estimated earlier this year, according to CalMatters.