This month marks a significant milestone for health workers in California as they finally receive a long-promised minimum wage increase. The increase, which is set to take effect on October 16, 2024, comes after a lengthy process that has kept many workers in suspense. According to a letter from state health officials to the Legislature, the implementation of this wage boost is now confirmed, providing much-needed relief for those in the healthcare sector.
In the letter, Michelle Baass, the director of the California Department of Health Care Services, outlined the timeline for the wage increases, stating, “The health care minimum wage increases shall be effective 15 days after the date of this notification.” This announcement follows the passage of Senate Bill 525, signed by Governor Gavin Newsom last year, which aims to gradually raise the minimum wage for the state’s lowest-paid health workers to $25 an hour over several years.
The initial rollout of this law was slated for June 1, but due to concerns regarding the state budget, Newsom requested a delay. The law is projected to cost the state approximately $1.4 billion in the first six months of implementation, as estimated by the Department of Finance. The deal to postpone the wage increase included a stipulation that the raises could begin between October 15 and January 1, contingent on the state achieving at least a 3% increase in tax revenue or securing federal funding to help offset costs.
With the recent confirmation from the Department of Industrial Relations regarding the implementation date, many health workers are finally seeing a light at the end of the tunnel. While some employers adhered to the original June deadline and have already provided pay increases, the majority of workers have been waiting patiently for this long-awaited change.
‘We Deserve This’
Health workers across the state have expressed their relief and excitement at the news of the wage increases. Yvonne Martinez, a housekeeper at Doctors Medical Center in Modesto, emphasized the importance of this change, stating, “We deserve this. We deserve to be recognized. We deserve more than what we are getting paid.” After 14 years in her role, Martinez currently earns just over $20 an hour, a wage that she feels does not reflect the demanding nature of her job, which includes cleaning restrooms, sanitizing surfaces, and changing linens.
Martinez’s sentiments resonate with many of her colleagues, who often find themselves living paycheck to paycheck. The physically and emotionally taxing nature of their work is rarely acknowledged with a livable wage, leading many to take on additional jobs just to make ends meet. The phased approach to the minimum wage increase means that not all workers will see an immediate jump to $25 an hour. For instance, employees at large hospital systems will see their pay rise to $23 an hour, while those at rural and safety net hospitals will start at $18. Some workers may not reach the $25 mark until as late as 2033.
Senator Maria Elena Durazo, a Los Angeles Democrat and the author of the law, along with the union SEIU California, has been a strong advocate for this wage increase. Durazo noted the critical role that healthcare workers play, especially in light of the staffing shortages exacerbated by the COVID-19 pandemic. “With patient care suffering from a staffing shortage driven by low pay and compounded by COVID-19, nursing aides, medical assistants, clinic workers, hospital janitors, and other critical healthcare workers came together to tackle this crisis head-on,” she stated, acknowledging the collective efforts of workers, employers, and the governor in achieving this wage increase.
Approximately 426,000 workers are expected to benefit from this law, which encompasses a wide range of roles within the healthcare sector, including medical assistants, front office staff, medical billing personnel, patient techs, janitors, and food service workers. This initiative marks California’s second minimum wage hike for a specific industry, following the increase for fast food workers to $20 an hour earlier this year. For the rest of the workforce, California’s minimum wage remains at $16 an hour.
Supported by the California Health Care Foundation (CHCF), which is dedicated to ensuring that individuals have access to affordable healthcare, this wage increase is a critical step towards recognizing the essential contributions of health workers throughout the state. For more information about the foundation’s efforts, visit www.chcf.org.