California Governor Signs Bill Establishing $25 Minimum Wage for Health Care Workers
California Governor Gavin Newsom has signed a groundbreaking bill into law that will set a statewide minimum wage of $25 per hour for health care workers. The bill, known as SB 525, was authored by Sen. María Elena Durazo of Los Angeles and will implement gradual minimum wage increases, commencing in the following year, and progressively rising at varying rates based on the type of health care facility until it reaches the $25 per hour threshold.
Sen. Durazo expressed her gratitude to Governor Newsom on X, previously known as Twitter, for signing the historic SB 525. She praised the bill as a significant investment in the state’s healthcare workforce.
The Service Employees International Union-United Healthcare Workers West union provided considerable support for the bill, as they have been leading initiatives in various cities, such as Los Angeles, to enact localized $25 minimum wages for health care workers. The union anticipates that the new law will elevate wages for approximately 455,000 workers throughout California, with about 75% of them being women and 76% being workers of color. Additionally, nearly half of the affected workers are Latino/a.
“Today, California is halting the erosion of our care workforce by ensuring that health care workers can earn a living wage while doing the work they love,” stated Tia Orr, executive director of SEIU California. Orr emphasized that this victory benefits both workers and patients, acknowledging the dedication and bravery shown by healthcare workers during the pandemic.
Expressing support for the bill and recognizing it as a significant milestone, the California Hospital Association opposed SEIU-UHWW’s localized ordinances but endorsed the statewide legislation. The association believes that the law will establish a stable and predictable path for wage increases across different tiers of hospitals, while also placing restrictions on contract workers impacted by the wage hike.
The association warned of potential consequences if SB 525 had not been implemented, stating, “Without SB 525, we know that dozens more hospitals will face great danger as $25 per hour ballot initiatives are likely to pass in cities throughout California. In addition to sudden wage leaps, these initiatives would prevent hospitals from making personnel adjustments to address increased labor costs.”
The SEIU-UHWW outlined the wage structure that will be set by the legislation:
– Large public and private health facility employers and dialysis clinics will have wages set at $23/hour in 2024, $24/hour in 2025, and $25/hour in 2026.
– Wages at public and private hospitals with a “high governmental-payer mix,” rural independent hospitals, and small county facilities will start at $18/hour in 2024 and increase by 3.5% annually until reaching $25/hour in 2033.
– Community clinics will see wages set at $21/hour in 2024, $22/hour in 2026, and $25/hour in 2027.
– Other covered health facilities will have wages set at $21/hour in 2024, $23/hour in 2026, and $25/hour by 2028.
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