SACRAMENTO, Calif. — A sweeping agreement between labor and the health industry would gradually raise the minimum wage for hundreds of thousands of health workers in California to a nation-leading $25 an hour while ending a years-long battle over dialysis clinics.
The pact approved by state lawmakers on Thursday, the last day of this year’s legislative session, would phase in the wage increase for hospitals, nursing homes, and other medical and psychiatric services providers. The bill now heads to the governor’s desk. A spokesperson for Democratic Gov. Gavin Newsom, Izzy Gordon, said the governor will evaluate the bill on the merits before his Oct. 14 deadline to act on the legislation.
SB 525 would raise the hourly minimum at large health facilities and dialysis clinics to $23 next year, $24 in 2025, and $25 in 2026. It would boost hourly wages at community clinics to at least $21 in 2024, $22 in 2026, and $25 in 2027. Other health facilities would go to at least $21 an hour in 2024, $23 in 2026, and $25 by 2028.
The agreement “now strikes an important balance between supporting workers and protecting jobs and access to care in some of our most vulnerable communities,” Carmela Coyle, president and CEO of the California Hospital Association, said in a statement. “The bill creates a pathway to improving wages for our lower-wage health ca …