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California Delays Health Care Worker Minimum Wage Increase Amid Budget Crisis

The wage hike for 426,000 workers, initially set for July 1, is now postponed to October or later due to a $46.8 billion budget shortfall.

  • Gov. Gavin Newsom and Democratic leaders agreed to the delay to balance the state budget.
  • The raise to $25 per hour will only proceed if state revenues exceed estimates by 3% between July and September.
  • If revenue targets are not met, the increase will be postponed until January 2025 at the earliest.
  • The delay is part of a broader effort to close the budget gap, which includes $16 billion in cuts and $5.1 billion from the state's savings.
  • The decision affects a range of health care workers, including medical assistants, janitors, and food service staff.
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