Starting October 16, 2024, health care workers across California will see a long-awaited boost in their minimum wage, as part of a gradual increase set in motion by Senate Bill 525, signed into law by Governor Gavin Newsom last year.
The legislation aims to eventually raise the minimum wage for the state's lowest-paid health workers to $25 per hour over the coming years, a change intended to address both worker shortages and compensation issues in the health care industry.
California's New Minimum Wage Law Takes Effect in Mid-October
The pay increase, confirmed in a letter from the California Department of Health Care Services to the Legislature, will take effect 15 days after the notification was issued.
Michelle Baass, director of the department, confirmed in her letter that the new minimum wage law will officially start on October 16, 2024. The state's Department of Industrial Relations also verified the implementation date on its website.
The law was initially scheduled to be implemented on June 1, 2024, but Governor Newsom requested a delay due to concerns about the state budget. The Department of Finance estimated that the law would cost the state $1.4 billion within the first six months of implementation.
The start date was postponed to allow the state time to secure additional tax revenue or federal funding to cover the costs. The wage increase will now begin between October 15 and January 1, 2025, depending on specific conditions outlined by the state.
While some employers have already raised wages to meet the initial June deadline, most workers have been waiting for the official wage increase. The gradual implementation means that health care workers will not see an immediate jump to $25 per hour, said The Orange County Register.
Gradual Wage Increase for Health Workers
Instead, employees at larger hospitals will receive an increase to $23 per hour, while those at smaller, rural hospitals and safety-net facilities will start at $18 per hour.
The Department of Industrial Relations has provided a detailed wage schedule outlining when different categories of health care workers will reach the $25-per-hour mark, with some not expected to hit that target until 2033.
Senate Bill 525 was authored by Senator Maria Elena Durazo, a Democrat from Los Angeles, and was supported by the SEIU California union. The legislation was designed to address the staffing shortages and low pay that have plagued the health care sector for years, especially during and after the COVID-19 pandemic.
Workers like nursing aides, medical assistants, janitors, and other essential health care personnel were among those who advocated for higher wages, arguing that their essential work deserved better recognition and compensation.
The UC Berkeley Labour Centre estimates that approximately 426,000 health care workers will benefit from the wage increase. This includes a wide range of roles, from those who assist with medical tasks to front office staff, janitors, food service workers, and more.
The health care wage increase follows a similar move in the fast food industry earlier this year, where workers saw their minimum wage rise to $20 per hour. Currently, the statewide minimum wage for most other workers in California is $16 per hour, according to AP News.
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