New Rules! Newsom Pushes Back CA Health Care Minimum Wage Increase to July 1 or Beyond

New Rules! Newsom Pushes Back CA Health Care Minimum Wage Increase to July 1 or Beyond

Of course, concerns about a new state law that would raise the minimum wage for California healthcare workers are understandable. Depending on their employer and place of employment, it offers varying pay rates.

Further perplexing both employers and employees is the fact that Governor Gavin Newsom has changed the commencement date.

The lowest paid health workers in the state will gradually receive wage hikes to $25 per hour, according to a measure that Governor Newsom approved last autumn.

With Senate Bill 525, hundreds of thousands of workers’ pay floors were raised, thanks to the labor organization SEIU California.

It said that wage increases by companies had to start by June 1st, but Newsom signed a second piece of legislation just hours before the deadline, postponing the wage increases until July 1.

New Rules! Newsom Pushes Back CA Health Care Minimum Wage Increase to July 1 or Beyond

The goal of the additional 30 days is to allow the Legislature and the administration to work out a deal that would basically link compensation to the state’s financial stability.


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Since this law is expected to cost the state $4 billion, according to Newsom’s administration, a revision has been requested. It is worth noting that the state is expected to have a $28 billion budget deficit.

In the midst of the uncertainty, some companies increased wages. Others have yet to receive the state’s most recent directive.

Worker and employer assistance in interpreting the law has been sought in the months following its passage. If they are affected by the new law, they would like to know if they will receive a salary increase and when.

SEIU, employers, and scholars who have examined the legislation have been contacted by CalMatters. This is what they mentioned.

Which pay scale does my situation fit into?

Ideally, the increase in the minimum wage would not occur suddenly. Throughout a number of years, some workers will get paid $25 per hour, while others will do so sooner.

The type of facility and size of the firm have a major impact on when employees reach $25.

Employees at Dignity Health, Sutter, Adventist, and UC Health, among the top 12 health systems in the state, will begin receiving an hourly wage raise of $23.

At independent and rural hospitals, starting pay will be $18. This is where the pay schedule for some health settings lies:

At skilled care facilities, my employer claims there won’t be a minimum wage hike. Does this actually happen?


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That varies. As long as they are a part of a sizable hospital or healthcare system, skilled nursing facilities, also known as nursing homes, are included. Currently excluded are independent skilled nursing facilities.

This is due to a legal provision stating that independent living facilities will only be counted when the state establishes a threshold for the percentage of income that must be allocated to patient care facilities. Jim Wood, an assemblyman, is trying to establish that standard with Assembly Bill 1537.

Closes this loophole and requires stand-alone skilled nursing facilities to increase their hourly salaries to $21 and eventually $25 by 2028 if the bill is signed into law.

For what categories of employees is a raise eligible?

The most recent projections from the UC Berkeley Labor Center indicate that 426,000 workers should gain from the law. Medical billing staff, front desk employees, patient technicians, janitors, and food service employees are a few examples of this.

Contractors that work mostly on-site at a facility that qualifies are likewise subject to the regulation.

I have been informed that the law is exclusive to employees of healthcare facilities that are unionized.

Does this actually happen?

No, whether a health worker is unionized or not, the law nonetheless applies to all low-wage employees working for a facility covered by it.

Is it possible for employers to choose not to comply with this law?

A temporary exception from the wage standards may be requested by some health facilities, mainly clinics, if they can show that the required pay increases would put them in a financial hardship that could force them to reduce services, lay off employees, or close.

Developing this waiver program is the responsibility of the California Department of Industrial Relations.

What is the expected date of my raise?

July 1, as of right now, however that might vary. In order to strengthen the state budget, Newsom requested in January that the Legislature postpone the law’s planned June 1 implementation date. It hasn’t, and it is likely that the governor and legislature will revisit before the conclusion of the current

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