California Gov. Gavin Newsom has signed two bills raising the minimum wage in 2024 for two large industries. California fast food workers’ minimum wage will increase to $20/hr. Health care workers will receive various raises eventually leading to a $25/hr minimum as early as 2026.
California State Assemblymember Chris Holden wrote the bill to address income inequality and increase the livable wage for workers.
“No company should have CEOs that are making over $20 million, but are adamantly opposed to giving workers $3.00 more,” he said.
Fast Food
Starting on April 1, 2024, AB 1228 mandates that “limited-service restaurants” increase wages for minimum wage employees. When in effect, these fast food workers will be among the highest wage earners in the nation. While there is no definitive list of which restaurants will fall under this bill, more than 60 fast food establishments like Taco Bell and Wendy’s will be bound to these changes.
The bill will exclude bakeries, cafes and restaurants like Starbucks and Panera Bread.
Additionally, this bill will form the Fast Food Council, which establishes a minimum standard of wages, working hours, and adequate work conditions until 2029. The council will consist of nine members from all levels of the industry including owners, workers and advocates.
Health Care Workers
On Oct. 13, SB 525 was signed, starting the road to raising health care workers minimum wage to $25/hr. The bill outlines multiple ways different types of clinics and hospitals will have to meet these requirements as soon as 2026.
According to the bill:
- Dialysis clinics and health systems with 10,000 workers or more will start at $23/hr beginning next year with a dollar raise every year till at least 2026.
- Community clinics will start workers at $21 an hour in 2024, $22 by 2026, and $25 by 2027.
- Workers in hospital where “the combined Medicare and Medi-Cal payor mix is 75 percent or greater,” will start off at $18/hr at the beginning of 2024 eventually reaching $25/hr by 2033.
- All other health care facility workers will start off 2024 at $21/hr, increasing to $23/hr by 2026, and reaching $25/hr in 2028.
