California delays health care worker minimum wage increase to help balance budget

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California delays health care worker minimum wage increase to help balance budget
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The agreement is part of a plan to close an estimated $46.8 billion deficit in the state’s budget.

FILE – California Gov. Gavin Newsom answers a reporters question about his revised 2024-25 state budget during a news conference in Sacramento, Calif., Friday, May 10, 2024. On Saturday, June 22, Newsom and legislative leaders announced an agreement to close an estimated $46.8 billion budget deficit. SACRAMENTO — Democrats in California have agreed to delay a minimum wage increase for about 426,000 health care workers to help balance the state’s budget.

The new fast food minimum wage is $20 per hour and took effect on April 1. The new health care worker minimum wage is $25 per hour and was slated to be phased in over the next decade. The first increase was supposed to begin on July 1. “Of course, workers are disappointed that not every low-wage worker in health care will receive raises this summer as the law initially scheduled,” said Dave Regan, president of Service Employees International Union-United Healthcare Workers West.

The agreement would pull $5.1 billion from the state’s savings account while delaying $3.1 billion in other spending and shifting $6 billion in expenses to other funds.

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