California health workers are finally seeing the long-promised minimum wage increase, with the first phase starting on October 16, 2024, according to a letter from the California Department of Health Care Services to the California Legislature. This wage boost, part of Senate Bill 525 (SB 525) signed by Governor Gavin Newsom last year, will gradually raise the minimum wage for healthcare workers to $25 an hour over several years.
The law was initially set to take effect on June 1, 2024, but was delayed due to state budget concerns. The wage increase will cost $1.4 billion in the first six months.
Newsom’s deal to postpone the pay raise included flexibility. Depending on state tax revenue and federal funding, the rollout would begin between October 15 and January 1. The Department of Industrial Relations has confirmed the October 16 start date.
While some employers have already implemented the raise, most workers have been waiting for this long-overdue boost. Healthcare workers, such as Yvonne Martinez, a housekeeper at Doctors Medical Center in Modesto, have expressed relief. “We deserve to be recognized and paid a livable wage,” said Martinez, who has worked 14 years in physically and emotionally demanding conditions for just over $20 an hour.
The wage increase will happen in stages. Workers in large hospital systems will see an initial increase to $23 an hour, while those in rural and safety-net hospitals will start at $18. Depending on their facility, some healthcare employees will not reach the full $25 hourly wage until 2033.
Authored by Senator Maria Elena Durazo and sponsored by SEIU California, the bill aims to address the staffing shortages and low pay that have plagued the healthcare industry, particularly in the wake of the COVID-19 pandemic. An estimated 426,000 healthcare workers, including medical assistants, janitors, and food service staff, will benefit from this law. This is California’s second industry-specific wage increase, following a $20 per hour minimum wage for fast food workers introduced in April 2024.
