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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsCalifornia Health Workers May Face Rude Awakening With $25 Minimum Wage Law
Nearly a half-million health workers who stand to benefit from Californias nation-leading $25 minimum wage law could be in for a rude awakening if hospitals and other health care providers follow through on potential cuts to hours and benefits.
A medical industry challenge to a new minimum wage ordinance in one Southern California city suggests layoffs and reductions in hours and benefits, including cuts to premium pay and vacation time, could be one result of a state law set to begin phasing in in June. However, some experts are skeptical of that possibility.
The California Hospital Association brought a partly successful legal challenge to Inglewoods $25 minimum wage ordinance, which barred employers from taking those sorts of steps to offset their higher costs.
Layoffs, reductions in premium pay rates, reductions in non-wage benefits, reductions in hours, and increased charges are consequences of an employer having less money to spendwhich will necessarily be the case given the significant increase in spending on wages due to the minimum wage, the association said in its lawsuit. Additional examples include reducing health coverage and charging for parking or work-related equipment.
https://laist.com/news/health/california-health-workers-may-face-rude-awakening-with-25-minimum-wage-law?utm_campaign=20240420+How+To+LA+Weekend+Reads&utm_medium=email&utm_source=sfmc_&utm_content=&utm_term=4596750
Tree Lady
(11,649 posts)that they are raising prices 25-49% because of it. She runs large dealership with 300 employees so is in charge of picking health care plans.
She blames costs going up on higher wages.
This is going to make many businesses not be able to afford to help employees as much. She said sales have been down this past year.
Mark.b2
(324 posts)Before firing people.
The demand for medical services won't simply go down because the law increase cost.
ColinC
(8,550 posts)They think maximizing profits is more important than keeping people alive.
senseandsensibility
(17,693 posts)nuxvomica
(12,573 posts)So I think they can handle the wage increase without charging workers for parking, etc.
Source:
https://www.chcf.org/publication/tracking-financial-health-ca-hospitals/
EX500rider
(10,955 posts)3.8% profit is pretty weak IMO
So if the wage increase is more then 4% they go into the red
ProfessorGAC
(66,264 posts)100% of cost is not labor.
Admittedly, it's a much bigger fraction in health care (around 55%, which is double manufacturing)
So, 4% of 55% is only 2%.
The rest of your post, I fully on-board with.
Marcus IM
(2,499 posts)... to the rationing of the private market.
I bet citizens of the rest of the world envy it.