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Governor Gavin Newsom's administration is revisiting Senate Bill 525, aimed at gradually increasing healthcare wages to $25 per hour. Facing a $68 billion budget deficit, the move reflects the state's critical financial situation. While details are minimal, the administration is set to discuss changes with the Legislature and stakeholders; also recognizing the unclear implementation aspects of this legislation. The initial law, signed in 2023, faced resistance from the Department of Finance, estimating an annual cost of up to a billion dollars. As California is coping with financial challenges, additional updates on how this will unfold will be presented in the coming weeks.
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