Home US News California California’s new minimum wage law provides pay increases for health care employees.

California’s new minimum wage law provides pay increases for health care employees.

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California’s new minimum wage law provides pay increases for health care employees.

SACRAMENTO, Calif. — Starting Wednesday, numerous low-wage health care workers in California will see their salaries increase due to new state legislation that mandates a gradual rise in their hourly wages to a minimum of $25.

Under this law, staff members at independent health care facilities located in rural areas will earn at least $18 per hour. Meanwhile, workers at large hospitals with a minimum of 10,000 full-time employees will see their wages starting at $23 per hour this week. The law is designed to incrementally boost pay over the next ten years, with the possibility for some workers to reach the $25 hourly rate ahead of schedule.

Approximately 350,000 employees will benefit from this pay increase as stipulated by the law effective Wednesday, according to the Labor Center at the University of California, Berkeley.

Governor Gavin Newsom of the Democratic party enacted the law last year, initially planning for wage hikes to begin in June. However, lawmakers, alongside the governor, chose to postpone the implementation to address an estimated budget deficit of $46.8 billion.

Carmela Coyle, who serves as the president and CEO of the California Hospital Association, asserted last year that the new legislation is essential for supporting workers and ensuring access to health care services.

“SB 525 strikes the right balance between significantly improving wages while protecting jobs and safeguarding care at community hospitals throughout the state,” she noted in a statement.

Currently, the minimum wage for most workers across California stands at $16 per hour. In November, voters will have the opportunity to vote on an incremental increase to $18 an hour by 2026, which would set a record as the highest state minimum wage in the nation. Last year, Newsom also signed a law requiring fast food workers in California to earn at least $20 per hour.

Upon the law’s initial passage, some health care providers expressed worries regarding the potential financial strain on hospitals, especially given their ongoing recovery from the COVID-19 pandemic. Critics cautioned that the law might force providers to reduce staff hours or even lay off employees.

However, many hospitals have begun to implement these wage hikes ahead of the law’s original schedule. Sarah Bridge, who holds the position of vice president of advocacy and strategy at the Association of California Healthcare Districts, acknowledged the financial pressures introduced by the law but emphasized that her members are prepared to accommodate these changes.

“It obviously does create financial pressures that weren’t there before,” Bridge commented regarding the implementation of the law. “But our members are all poised and ready to enact the change.”