California will raise the minimum wage for health care workers to $25 an hour over the next 10 years under a new law signed by Democratic Gov. Gavin Newsom on Friday.
The new law is the second minimum wage increase signed by Newsom.Last month, he signed a law raising the minimum wage fast food restaurant worker to $20 per hour.
Both wage increases are the result of years of lobbying by labor unions, which wield significant influence in the state’s Democratic-dominated Legislature.
“Californians have seen the courage and commitment of our health care workers during the pandemic, and now that same fearlessness and commitment to patients is reflected in this historic investment in health care workers,” said Executive Director Tia Orr. Making our health care system strong and working for everyone.” Member of California Service Employees International Union.
Medical staff salary increases reflect A well-thought-out compromise It comes in the final days of the legislative session between the health care industry and unions to avoid some costly ballot initiative campaigns.
Several California city councils have passed local laws raising the minimum wage for health care workers. The healthcare industry then held a referendum asking voters to block these price increases. The union responded by approving a ballot initiative in Los Angeles that would cap maximum salaries for hospital executives.
The law Newsom signed Friday would preempt local minimum wage increases.
Newsom’s signing of the law was somewhat unexpected.His administration has previously expressed concerns about the bill because of how it would affect The state’s budget is in trouble.
California’s Medicaid program is a major source of revenue for many hospitals. Newsom’s administration has warned that the wage increases will result in billions of dollars more in Medicaid payments to hospitals by the state.
The union said raising pay for health care workers would allow some to drop out of the state’s Medicaid and other government support programs that pay for food and other expenses.
A study by the UC Berkeley Labor Center found that almost half of low-wage health care workers and their families use these publicly funded programs. Researchers predict these savings will offset costs to the state.
The $25 minimum wage is a focus of negotiations between Kaiser Permanente and the union representing about 75,000 workers.All those workers have gone strike Three days last week.Both parties announced tentative agreement Friday.
The strike comes during a year marked by shutdowns in several industries, including transportation, entertainment and hospitality.this health care The industry has always faced burnout from demanding jobs, and the COVID-19 pandemic has greatly exacerbated the problem.
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