California governor signs $25 hourly minimum wage

gavin newsom

California Governor Gavin Newsom has signed a new law that will raise the minimum wage for health care workers to $25 an hour.

The law, signed by Newsom on Friday, establishes a schedule for health care facilities to raise wages over the next decade.

Senator María Elena Durazo, who sponsored SB 525, thanked Newsom for signing the bill, calling it a “historic investment in our health care workforce.”

“SB 525 accounts for regional and local disparities and, more importantly, is a critical step to ensure we address the health workforce shortage by attracting more workers to this profession,” said Durazo in a Facebook post. “This legislation will raise wages for nearly half a million health care workers across the state, putting more money in the pockets of families and communities, helping them keep up with the high cost of living, and maintaining access to quality care.”

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The bill establishes a statewide healthcare worker minimum wage of $25 an hour by raising wages:

• In large health facility employers and dialysis clinics to $23 per hour in 2024, $24 per hour in 2025, and $25 per hour in 2026

• In hospitals with a high government-payer mix, rural independent hospitals, and small county facilities, to $18 per hour in 2024, and increase 3.5% to $25 in 2033

• In community clinics to $21 per hour in 2024, $22 in 2026 and $25 in 2027

• In other covered health facilities to $21 per hour in 2024, $23 in 2026 and $25 in 2028

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According to the University of California Berkeley Labor Center, the law raised wages for about 455,000 health care workers. Three out of four (75.4%) workers who saw a wage increase were women and 76% were workers of color, the report showed.

The legislation is a “huge victory for workers and patients seeking care,” according to Tia Orr, executive director of SEIU California, which represents nearly 450,000 long-term care workers nationwide. state.

“California is stopping the bleeding of our health care workforce by making sure health care workers can do the work they love and pay their bills,” Orr said in a statement. “Californians have seen the courage and commitment of health care workers during the pandemic, and now that same fearlessness and commitment to patients is responsible for a historic investment in the workforce that makes in our health care system that is strong and accessible to all.”

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