California Promised A Higher Minimum Wage For Health Care Workers. Will Newsom Delay It?

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Budget,Deficit,Wage Hike

A higher minimum wage for health care workers that Gov. Gavin Newsom signed into law is set to take effect in two weeks, but he is racing to delay it because of its potential impact on the state budget deficit.

Gov. Gavin Newsom wants to postpone a minimum wage increase for California health care workers that is scheduled to take effect in June. Some employers have already begun raising pay. Here, striking workers march outside of the University of California San Francisco Parnassus campus on May 7, 2018.In these challenging times, the need for reliable local reporting has never been greater. Put a value on the impact of our year-round coverage.

Meanwhile the union that advocated for the health care pay increase has launched an advertising campaign that aims to hold Newsom to the law he signed.shows a dialysis worker named Alice and it reads, “The dialysis care Alice provides is lifesaving. Yet, with caregivers at her facility starting out at only $18/hr, it’s no wonder there’s a short staffing crisis.

The UC Berkeley Labor Center estimates the cost to the state to be much lower. Total health spending in California would increase by about $2.7 billion because of the law, but the state would be responsible only for a fraction of that, according to the Labor Center’s analysis. The California Kidney Care Alliance, a trade association representing dialysis providers and clinics, said members are following the wage requirements as laid out by the law. “In fact, many providers have already increased wages well ahead of the requirements of the bill,” Jaycob Bytel, a spokesperson for the alliance, said in a statement., employees are scheduled to receive from $18 to $23 an hour starting next month. That’s compared to the current statewide minimum wage of $16.

Herbst said he rolled out increases beginning in February, and “will continue to evaluate it as time goes on.” He expects the law to cost his hospital about $30 million a year.After San Gabriel's city council rejected the proposal as"too narrow", one city councilmember argued the entire DEI commission, created in the aftermath of George Floyd's murder, had"run its course.

Source: Healthcare Press (healthcarepress.net)

Budget Deficit Wage Hike Health Care Workers Newsom

 

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