Newsom signs bill establishing 5 separate minimum wage schedules

California Governor Gavin Newsom has signed legislation that would push California’s health care workers’ minimum wage to $25 per hour.

On Friday, Newsom signed Senate Bill 525, which establishes five separate minimum wage schedules for covered health care employees.

With the new law, the minimum wage for covered health care employees will be $23 per hour starting June 1, 2024.

The wage will move up for $24 per hour starting June 1, 2025, and to $25 per hour by June 1, 2026.

The changes will apply to:

• any covered health care facility employer with 10,000 or more full-time equivalent employees (FTEE)
• any covered health care facility employer that is a part of an integrated health care delivery system or a health care system with 10,000 or more FTEEs
• a covered health care facility employer that is a dialysis clinic or is a person that owns, controls, or operates a dialysis clinic
• or a covered health facility owned, affiliated, or operated by a county with a population of more than 5,000,000 as of January 1, 2023

The changes come after 75,000 Kaiser Permanente hospital workers walked off the job earlier this month. The Coalition of Kaiser Permanente Unions said members have gone on strike to protest “bad faith bargaining” of Kaiser executives, Los Angeles Times reported.

Under the new law, hospitals with a high governmental payor mix, an independent hospital with an elevated governmental payor mix, a rural...

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