Gavin Newsom's Restaurant Offers $16 Hourly Wage To Employee

By Shannon McDonagh

5

A new law in California is set to significantly raise wages for health care workers, gradually increasing their pay to $25 per hour over the next decade.

Starting this Wednesday, the law will affect approximately 350,000 workers, marking one of the largest pay increases for health sector employees in the country.

Initially, wages will rise to $18 per hour for employees at smaller, rural health care facilities.

Workers at larger hospitals, particularly those employing more than 10,000 people, will see their wages jump to $23 per hour. This phased implementation will eventually provide all health care workers covered under the law with a minimum of $25 per hour.

The legislation, known as Senate Bill 525 (SB 525), was signed by Gov. Gavin Newsom in 2023.

However, budget concerns led to its delay from an original June start date, as the state grappled with an estimated $46.8 billion budget shortfall.

Gov. Newsom and fellow Democrat lawmakers ultimately agreed to push back the implementation to October, ensuring the law's wage hikes would take effect this week.

The law is expected to improve working conditions and increase job satisfaction among the state's health care workforce.

Unions and campaigners have applauded the passage of SB 525.

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