A minimum wage increase for certain health care workers in California goes into effect Oct. 16.

Senate Bill 525 is part of a plan to gradually increase the pay for thousands of health care workers to $25 over the next decade. While it was originally enacted in the fall of 2023 and was slated to take effect June 1, the deadline was delayed by Gov. Gavin Newsom due to concerns over the impact on the California budget.

The law is expected to cost the state $1.4 billion in the first six months of implementation, according to estimates from earlier this year by the Department of Finance.

Workers of covered health care facilities that provide health care services (including patient care) or provide services supporting the provision of health care are covered. The following facilities are mentioned:

• Hospitals and Hospital Systems
• Care in residential settings
• Physician’s groups
• County mental health facility
• County correctional facility
• Mental Health Rehabilitation Centers
• Outpatient clinics

For example, workers at the state’s largest health systems, including Adventist, Dignity Health, Sutter, and UC Health will start their pay increases at $23 an hour.