San Diego-based Scripps Health is increasing its hourly minimum wage from $21 to $23.
The adjustment in June 2024 will affect an estimated 8,000 employees, according to the health system. This includes employees whose pay is below $23 an hour and those affected by compression.
Chris Van Gorder, president and CEO of Scripps, told Becker's the change is to recruit and retain workers, as well as in response to California's minimum wage for healthcare workers. The state's minimum wage for healthcare workers is set to increase starting next year under legislation signed into law by Gov. Gavin Newsom in October.
Mr. Newsom is now seeking changes to the law, although it is unclear whether the changes will be related to the funding structure, scope of the law's applicability or its timeline. Currently, the law is set to increase the minimum wage for healthcare employees starting in June 2024. It will increase annually, ranging from $18 to $25 per hour. Healthcare facilities are expected to reach a $25 hourly minimum wage by June 1, 2028 or, for some in rural locations, 2033.
Scripps plans to assess the impact of increasing its hourly minimum wage from $23 to $24 in fall 2024, a spokesperson told Becker's.