California will raise the minimum wage for health care workers to $25 per hour over the next decade under a new law Democratic Gov. Gavin Newsom signed Friday.
The new law is the second minimum wage increase Newsom has signed. Last month, he signed a law raising the minimum wage for fast food workers to $20 per hour.
The wage increase for health care workers reflects a carefully crafted compromise in the final days of the legislative session between the health care industry and labor unions to avoid some expensive ballot initiative campaigns. California’s Medicaid program is a major source of revenue for many hospitals. The Newsom administration had warned the wage increase would have caused the state to increase its Medicaid payments to hospitals by billions of dollars.
A study by the University of California-Berkely Labor Center found almost half of low-wage health care workers and their families use these publicly funded programs. Researchers predicted those savings would offset the costs to the state.
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