According to ABC 7, California’s Democratic leaders, led by Governor Gavin Newsom, have agreed to postpone a planned minimum wage increase for approximately 426,000 healthcare workers. This decision comes as the state grapples with a substantial $46.8 billion budget deficit. Originally scheduled for July 1, the wage hike to $25 per hour over the next decade will now hinge on state revenue targets from July to September. If these targets are not met, the wage increase will be delayed until at least January 1, 2024.
The delay aims to alleviate immediate financial pressures on California’s budget, which is burdened by significant healthcare and Medicaid costs. Despite disappointment among healthcare workers, represented by the Service Employees International Union-United Healthcare Workers West, this compromise seeks to balance fiscal responsibility with the need to address labor concerns in the face of economic challenges.
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