In June, California Gov. Gavin Newsom and state legislators reached an agreement to delay the start of minimum wage increases for healthcare workers to at least October. However, some hospitals have already started raising pay, CalMatters reported July 29.
Mr. Newsom signed SB 525 in October 2023 to gradually raise the minimum wage for healthcare workers to $25 per hour through a series of annual increases ranging from $18 to $25 per hour, with healthcare facilities expected to reach a $25 per hour minimum wage by June 1, 2028, or, for some in rural locations, 2033.
The governor then indicated he wanted to potentially delay the increases in the face of the state's projected budget shortfall. He signed SB 828 in May, which postponed the start of the wage adjustments to July 1, the beginning of the state's fiscal year. Mr. Newsom and lawmakers then agreed in June to push back the deadline until at least Oct. 15.
However, about 1,000 Teamsters members who work for San Bernardino County will see a raise ahead of the deadline, union leaders said, according to CalMatters. This includes housekeeping and linen workers, who will receive $18 an hour.
Oakland-based University of California also announced in May that it would begin increasing minimum hourly wages for healthcare workers beginning June 1. The hourly minimum wage for designated healthcare employees climbed to $23 per hour at that time, according to the university. It will increase to $24 per hour in June 2025 and to $25 per hour in June 2026.
Overall, about 426,000 California healthcare workers are projected to see raises from the law, according to CalMatters, which cites estimates from the Labor Center at UC Berkeley. The law excludes some workers, including minimum wage employees at medical groups with fewer than 25 physicians.