<p>California&#8217;s legislature is trying to delay a new $25 minimum wage for health care workers after Democrats realized it will have larger ramifications for the state&#8217;s budget.</p>
<p>Governor Gavin Newsom (D) signed the law back in October despite warnings from legislative analysts about the high cost to the state itself.</p>
<p>The Democrat-controlled legislature is now scrambling to delay the <a href="https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240SB525" target="_blank" rel="noopener">law</a>, which is set to take effect on June 1 and would start phasing in a $25 minimum wage for healthcare workers by 2028.</p>
<p>The state has predicted the new minimum wage law will likely cost California another $4 billion a year. This is mainly because Medicaid costs would jump, and the state would have to pay more to its own workers at state-owned health care facilities.</p>
<p>Health care providers have also warned that mandating higher pay could force them to pare down patient services. Some California hospitals <a href="https://calmatters.org/health/2024/05/minimum-wage-health-care-deadline/" target="_blank" rel="noopener">say</a> they expect the law to cost them tens of millions of dollars.</p>
<p>Meanwhile, California&#8217;s budget deficit is now a <a href="https://www.wsj.com/articles/californias-25-an-hour-minimum-wage-boomerang-newsom-healthcare-d86c8515" target="_blank" rel="noopener">whopping</a> $45 billion.</p>
<p>Last week, Newsom presented his latest budget proposal. He said that the governor&#8217;s office, the legislature, and supporters of the new minimum wage are currently working out a deal on potential changes to the law.</p>
<p>“This budget will not be signed without that deal that we committed to being addressed,” Newsom <a href="https://calmatters.org/health/2024/05/minimum-wage-health-care-deadline/" target="_blank" rel="noopener">said</a>.</p>
<p>However, it is not clear whether a deal will be reached before Saturday, when the law takes effect. It is also not clear what the sticking points are in the negotiations.</p>
<p>If no changes are made by this weekend, the minimum wage for health care workers will jump to between $18 and $23 an hour, depending on the health care provider. By 2028, almost all workers at health care facilities in California will be paid at least $25 an hour.</p>
<p>Some health care facilities have <a href="https://calmatters.org/health/2024/05/minimum-wage-health-care-deadline/" target="_blank" rel="noopener">already</a> begun raising wages for workers in anticipation of the law. Others have not done so yet.</p>
<p>California&#8217;s current minimum wage for all workers is $16 an hour.</p>
<p>In September, Newsom also signed a law establishing a new $20 an hour minimum wage for fast food workers, which kicked in last month. However, the governor carved out several expeditions, <a href="https://www.thecentersquare.com/california/article_7f58528e-ebbb-11ee-88bd-27a7c58ce048.html" target="_blank" rel="noopener">including</a> for fast food restaurants located on certain government-owned lands.</p>
<p>Since the law was signed, California fast food restaurants have increased prices by 10% overall, more than any other state, <a href="https://abcnews.go.com/GMA/Food/california-restaurants-face-stark-realities-burdens-after-minimum/story?id=109741431" target="_blank" rel="noopener">according</a> to the market research firm, Dataessential.</p>
<p>One Pizza Hut franchise operator said it was laying off 1,200 drivers, and Chipotle and Mcdonald&#8217;s said they would raise prices as a result of the law.</p>

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California’s Democratic Legislature Scrambling To Delay $25 Health Care Minimum Wage