California Gov. Gavin Newsom has signed off on a new law that will raise the minimum wage for health care workers to $25 per hour.
The law, signed by Newsom on Friday, establishes a schedule for health care facilities that will increase wages over the next decade.
Senator María Elena Durazo, who sponsored SB 525, thanked Newsom for signing the bill, calling it a "historic investment in our healthcare workforce."
"SB 525 accounts for regional and local differences and, more importantly, is a critical step to ensuring that we are addressing our healthcare workforce shortage by attracting more workers to this profession," Durazo said in a post on Facebook. "This legislation will increase the wages of nearly half a million healthcare workers across the state, putting more money in the pockets of families and communities, helping them keep up with a high cost of living, and maintaining access to quality care."
The bill establishes a statewide healthcare worker minimum wage of $25 per hour by raising wages:
• At large health facility employers and dialysis clinics to $23 per hour in 2024, $24 per hour in 2025, and $25 per hour in 2026
• At hospitals with a high governmental-payer mix, rural independent hospitals, and small county facilities, to $18 per hour in 2024, and goes up at 3.5% until it reaches $25 in 2033
• At community clinics to $21 per hour in 2024, $22 in 2026 and $25 in 2027
• At other covered health facilities to $21 per hour in 2024, $23 in 2026 and $25 by 2028
According to the University of California Berkeley Labor Center, the law lifts wages for about 455,000 healthcare workers. Three out of four (75.4%) workers seeing increases in wages are women and 76% are workers of color, the report shows.
The legislation is a "huge win for workers and patients seeking care," according to Tia Orr, executive director of SEIU California, which represents nearly 450,000 long-term care workers throughout the state.
"California is putting a stop to the hemorrhaging of our care workforce by ensuring health care workers can do the work they love and pay their bills," Orr said in a statement. "Californians saw the courage and commitment of healthcare workers during the pandemic, and now that same fearlessness and commitment to patients is responsible for a historic investment in the workers who make our healthcare system strong and accessible to all."