California Health Care Worker Minimum Wage Boost Delayed Further

An increase to California health care workers’ minimum wage has been delayed again due to concerns about its effect on the state budget.

The increase, which had been bumped back from June 1 to July 1, now will be implemented in October at the earliest and possibly not until January 2025.

We’ve gathered articles on the news from SHRM Online and other outlets.

Deal Reached

The deal, announced June 22, ties implementation of the minimum wage to the state’s finances. Under the agreement, the minimum wage would take effect Oct. 15 if state revenue between July and September is at least 3% higher than expected under current projections. Implementation of the minimum wage increases could be pushed back to Jan. 1 if state revenue doesn’t rise to that level.

(Bloomberg Government)

More Than 400,000 Workers Affected

The delayed increase affects about 426,000 workers. The agreement between Gov. Gavin Newsom and legislative leaders is part of a larger plan to close an estimated $46.8 billion budget shortfall.

Dave Regan, president of Service Employees International Union-United Healthcare Workers West, said workers are disappointed they won’t get raises this summer. “But we also recognize and appreciate that legislative leaders and the governor listened to us as we mobilized and spoke out this year to insist that, despite a historic budget deficit, California’s patient care and health care workforce crisis must be addressed,” he said in a statement.

(AP)

Law Encompasses Many Roles

This minimum wage law, which Newsom signed last year, doesn’t just apply to nurses, physicians, caregivers, medical residents, interns, and fellows. It also applies to workers who provide support to health care facilities in additional roles. These workers include janitors, housekeepers, groundskeepers, security guards, clerical workers, nonmanagerial administrative workers, food service workers, gift shop workers, technical and ancillary services workers, medical coding and medical billing staff, schedulers, call center and warehouse workers, and laundry workers. The law also extends the definition of “employees” to include independent contractors.

(SHRM Online)

Different Ranges of Pay Raises

The law provides different covered health care facilities with various ranges of pay raises based on the type of facility. The types of facilities are “health care facility employers,” “hospitals,” “clinics,” “skilled nursing facilities,” and “others,” as defined by the law.

(Fisher Phillips and SHRM Online)