Terms written in Senate Bill 525 have tens of thousands of California healthcare workers set to see their minimum wage climb to $25 an hour over the next few years.
This amended legislative proposal has support from both labor groups and employers and provides incentives to employers by offering a 10-year moratorium on local measures aimed at increasing compensation for medical workers, per CAL Matters.
Now the proposal will reach Governor Newsom's desk, and if signed will become law.
According to the updated bill language, the pay increase would work out as follows throughout the next ten years:
- Dialysis clinics and large health systems with more than 10,000 workers would pay a minimum wage of $23 an hour in 2024, $24 in 2025, and $25 in 2026.
- Hospitals with a high mix of Medi-Cal and Medicare patients, as well as rural independent hospitals would have to pay workers $18 an hour in 2024. That rate would increase by 3.5% annually until it reaches $25 in 2033.
- Community clinics would start the pay increase at $21 per hour in 2024, rising to $22 in 2026 and $25 in 2027.
- Other healthcare employers would increase their minimum wage to $21 per hour in 2024, $23 in 2026 and $25 by 2028.