California raises minimum wage for healthcare workers to $25

California Gov. Gavin Newsom has signed a bill that will gradually raise the minimum wage of healthcare workers in the state to $25.

Senate Bill 525 was developed after union and hospital representatives reached agreement on how such a minimum wage could be addressed.

Under the new law, workers at healthcare facilities with 10,000 or more full-time equivalent employees will earn $23 per hour starting in 2024, increasing to $24 in 2025 and $25 by 2026.

Meanwhile, workers will earn $18 per hour starting next year at hospitals with a high governmental payer mix; independent hospitals with an elevated governmental payer mix; rural independent covered healthcare facilities; or covered healthcare facilities owned, affiliated or operated by a county with a population of less than 250,000 as of Jan. 1, 2023. Their pay will increase to $25 a year by 2033.

Finally, workers at urgent care clinics, skilled nursing facilities and other smaller facilities will start earning $21 per hour in 2024, with minimum wage increasing to $25 per hour by 2028.

Read more about the law here.

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