In light of California’s $37.86 billion budget shortfall, it is being reported that Governor Newsom is seeking changes to the California Healthcare Worker Minimum Wage law including the delay of the initial compliance date of June 1, 2024. It is not clear yet what the changes will be to the new law nor how far out the delayed implementation will be.

In the Governor’s proposed budget released on January 10, 2024, there is a request to make changes to the Healthcare Minimum Wage law so that the Governor, legislators, and key stakeholders can work through the proposed changes to the law. The proposal is found in the Governor’s Budget Summary on page 109.

On October 13, 2023, Governor Newsom signed Senate Bill (SB) 525, which enacts a multi-tiered statewide minimum wage schedule for healthcare workers employed by certain covered healthcare facilities. The new law established 5 different minimum wage schedules depending upon the nature of the employer.