Governor reconsidering $25 minimum wage for healthcare workers

aiexpress – California Governor Gavin Newsom (D) is reconsidering a previously signed law that would incrementally raise the minimum wage to $25 per hour for healthcare workers in nursing homes, assisted living facilities, and other healthcare-related settings. This decision comes as the state faces a projected $38 billion deficit.

As per media reports, it has been stated.

California tops the list when it comes to the highest number of skilled nursing facilities and assisted living communities in the United States, as reported by SNF Data and Statista.

The proposed plan to raise the minimum wage would impact around 400,000 individuals in California. Its objective is to raise the current hourly minimum wage of healthcare-related workers, which stands at $15.50. Under this plan, covered workers would see a gradual increase in their wages, starting with $23 per hour from June 1, 2024, to May 31, 2025. This would be followed by an increase to $24 per hour from June 1, 2025, to May 31, 2026, and ultimately reaching $25 per hour from June 1, 2026.

The Newsom administration initially disagreed with the significant wage increase during the discussions. Various organizations, including the California Assisted Living Association, the California Association of Health Facilities, LeadingAge California, and the California Chamber of Commerce, also opposed it. They argued that the substantial rise in labor costs resulting from SB 525 would be unsustainable.

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KFF Health News reports that the governor’s latest budget proposal includes a request to the state legislature. This request seeks to add an annual trigger that would make future minimum wage increases contingent on state revenues. Additionally, the proposal aims to clarify which state employees would be included in these wage increases. The governor cites the significant fiscal impact of the current law as the reason behind these proposed changes.

During a press conference on Wednesday, Newsom reassured reporters that he had received assurances about the forthcoming triggers, even though they were not explicitly mentioned in the bill, according to multiple media outlets.

The governor expressed confidence that all parties involved in the agreement would fulfill their commitments in a timely manner.

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