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California
Published June 3, 2023 12:10pm EDT


CALIFORNIA SENATE PASSES $25 MINIMUM WAGE FOR HEALTH CARE WORKERS


CRITICS SAY CALIFORNIA'S HEALTH CARE INDUSTRY CAN'T HANDLE COSTS THAT WOULD COME
WITH WAGE SPIKE

 * 
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 * Comments
 * 

By Aaron Kliegman FOXBusiness
Douglass Murray: Do you want to live in a state like Florida or California?

Fox News contributor Douglass Murray looks ahead to 2024 and other possible
presidential contenders for the Republican ticket on 'The Bottom Line.' 

California's state Senate passed a bill this week that would raise the minimum
wage for health care workers and support staffers to $25 an hour.

Authored by Democratic Sen. Maria Elena Durazo and supported by the Service
Employees International Union (SEIU), the legislation didn't receive a single
Republican vote.

Specifically, the bill would require any covered health care facility — from
dialysis clinics to acute psychiatric hospitals — to pay $25 an hour to all
workers on their premises, regardless of employer. Eligible employees include
not only nurses and caregivers but also janitors, food service workers,
housekeepers, and gift shop employees, as long as they directly or indirectly
support patient care.



"I can't fix all of the problems in our health care system with one bill,"
Durazo told the Sacramento Bee after the initial vote. "That was not the
purpose. The purpose was to elevate the role of the workers who provide us these
services."

A nurse works outside a negative pressure room in the Covid-19 Intensive Care
Unit (ICU) of Sharp Memorial Hospital in San Diego, Calif., on Jan. 28, 2021.
(Bing Guan/Bloomberg via Getty Images / Getty Images)

CALIFORNIA DEMS PROPOSE $25 MINIMUM WAGE FOR ALL HEALTH WORKERS, INCLUDING
HOUSEKEEPERS AND SECURITY GUARDS

If the proposed wage increase passes the California State Assembly and is signed
into law, it would be incremental, rising to $21 for one year beginning June 1,
2024, and then spiking to $25.



A $25 minimum wage would increase operational costs at health facilities by an
estimated 3% and elevate pay by about $5.74 for each eligible healthcare worker,
according to a report by the University of California, Berkeley's Labor Center.

Another study commissioned by the California Hospital Association, which opposes
the bill, estimates the higher wage rate would increase total annual costs for
the health care system by about $8 billion in 2024 and rise to $11.3 billion by
2030.

"This bill imposes a top-down wage increase for all health care workers that
does not account for the current economics of health care or the unique
circumstances of health care providers in local communities in a state as large
and diverse as California," Rony Berdugo, vice president of state advocacy for
the hospital association, wrote in a letter to the Senate appropriations
committee in April. "SB 525 will in fact reduce access to medical services,
increase health care costs, and diminish health care employment opportunities."



Republicans who opposed the measure expressed similar concerns.

"Sometimes our generosity and compassion exceed our ability to pay and serve,"
said Republican state Sen. Kelly Seyarto. "What has to be done first is you have
to address the financial stability of the hospital health care system."

California Gov. Gavin Newsom speaks during a press conference on Oct. 6, 2022 in
San Francisco, Calif. ((Photo by Justin Sullivan/Getty Images) / Getty Images)

LOS ANGELES COUNCILMAN PROPOSES $25 MINIMUM WAGE FOR TOURISM WORKERS



Even some Democrats who ended up voting for the legislation expressed doubts
about its financial feasibility and the prospect of driving health care
employers out of California. 

"I worry about this bill in a lot of ways," said Democratic state Sen. Dave Min,
according to the Sacramento Bee. "I have deep concerns that this bill may end up
causing health care facilities to exit the state, to go out of business, at a
time when we really need them."

However, the bill has strong support from unions, who argue health care
employees are overworked and receive too little compensation.



"I'm glad that the state Senate listened to health care workers like me and
heard the truth about how we are exhausted and burned out, how short staffing
means we are doing double and triple work, and how our patients are left waiting
to get the care they need," said Mirell Vong, a patient registration
representative at Mercy Hospital of Folsom, in a statement provided by SEIU
California. "I'm glad they weren’t fooled by hospital industry lobbyists who
claim they don’t have the money to pay us better when we know the truth: they
are raking in profits and paying executives million-dollar salaries."

A growing number of people are leaving California, in part due to rising costs
on both residents and businesses.  (istock / iStock)

CALIFORNIA REPARATIONS COMMITTEE CALLS ON STATE TO RAISE MINIMUM WAGE ABOVE
$15.50 TO A 'LIVING WAGE'

The SEIU represents 2 million members in health care, the public sector, and
property services in the U.S., Canada, and Puerto Rico. Last week, some members
marched on the state Capitol, the headquarters of the California Hospital
Association, and the California Primary Care demanding a $25 minimum wage for
health care workers.



The bill now moves to the Assembly. If passed, it will return to the Senate for
final approval.

Meanwhile, health care workers may not be the only ones in California to receive
a $25 minimum wage. A Los Angeles city councilman is proposing that the minimum
wage for the city's tourism and hospitality workers be raised to $25 per hour as
the cost of living has outpaced wages, and Los Angeles prepares to host several
global events in the next few years. The proposal by Curren Price would
immediately increase the hourly minimum wage for airport and hotel workers in
the city to $25 an hour and then raise it $1 each year until 2028, bringing it
to $30 an hour.

CLICK HERE TO GET THE FOX BUSINESS APP 



California already has the nation's second highest minimum wage at $15.50.
However, the state's reparations task force, has called on lawmakers to raise
that figure to a "living wage" as part of a broader set of proposals purportedly
meant for the Golden State to make amends for slavery and racism.

Last month, California Gov. Gavin Newsom announced that the state's budget
deficit has grown to nearly $32 billion, which is about $10 billion more than he
anticipated in January when he offered his first budget proposal.



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