October 18, 2023
On the final day the Governor Gavin Newsom signed or vetoed bills, he signed SB 525 (Durazo), to provide a minimum wage increase to health care workers.
Through CMA’s advocacy, SB 525 was amended to provide exemptions for IPAs and small practices as well as a gradual implementation of the increase. The ramp-up more closely aligns with wage trajectories that are anticipated to naturally occur due to economic pressures outside of SB 525, including existing law that requires an annual assessment and adjustment of the minimum wage to reflect inflation.
SB 525 ends efforts to move the fight to local ballot measures across the state. Those efforts, if they looked like previous ballot measures in Inglewood and Downey, would have involved an immediate increase.
The following graph shows when SB 525 wage increases would go into effect:
| Sector |
2024 |
2025 |
2026 |
2027 |
2028 |
| Physician groups with 25 or more physicians |
$21 |
|
$23 |
|
$25 |
| Physician groups part of large health systems with more than 10,000 workers and dialysis clinics |
$23 |
$24 |
$25 |
|
|
| Community Clinics |
$21 |
|
$22 |
|
$25 |
| Hospitals with high mix of Medi-Cal and Medicare patients and rural independent hospitals |
$18 |
Increase 3.5% annually until it reaches $25 in 2033
|
CMA will be closely monitoring how the new law impacts physician practices and patient care, especially small rural practices, hospitals and clinics.