California Democrats agree to delay health care worker minimum wage increase to help balance budget

SACRAMENTO, Calif. (AP) — Democrats in California have agreed to delay a minimum wage increase for about 426,000 health care workers to help balance the state’s budget.

The increase was supposed to start on July 1. The agreement, announced Saturday and which must still be approved by the state Legislature, would delay that increase until Oct. 15 — but only if state revenues between July and September are at least 3% higher than what state officials have estimated.

If that doesn’t happen, the increase will not start until January at the earliest.

The minimum wage for most people in California is $16 per hour. Gov. Gavin Newsom signed two laws last year that increased the minimum wage for two groups: Fast food workers and health care employees.

The new fast food minimum wage is $20 per hour and took effect on April 1. The new health care worker minimum wage is $25 per hour and was slated to be phased in over the next decade. The first increase was supposed to begin on July 1.

But unlike the fast food minimum wage, the increase for health care workers impacts the state’s budget. That’s because California employs some health care workers and also pays for health benefits through its Medicaid program.

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