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California’s Healthcare Minimum Wage Delay

Just a day prior to its implementation, California Governor Gavin Newsom delayed the state’s
healthcare minimum wage bill (Senate Bill 525) to July 1 to better align the increase with the state’s
budget. Authored by Senator Maria Elena Durazo, Senate Bill 828 to better coordinate state budget
projections and its massive $73 billion budget shortfall.

Senate Bill 525 is poised to provide the largest wage increase to more than 450,000 healthcare
workers, at a cost of approximately $4 billion a year. As of June 1, health care facilities were schedule
to begin paying workers $18 to $23 per hour, depending on the size of the hospital, the population of
the surrounding community and the amount of government aid the facility received, with targeted
increased to $25 per hour by 2026 and 2033 respectively. However, in light of the state’s budget
shortfall, the bill was delayed so that it may be implemented in line with the state’s budget.

We hope this memorandum will provide valuable guidance to help business owners with California’s
Senate Bill 828 and the overall implementation of the targeted healthcare worker minimum wage. If at
any point in the process you require additional information or need support, please do not hesitate to
reach out to us.

We are happy to help!