As hospitals in California face serious threats at the federal level — including deep cuts to Medicaid — we are also seeing local efforts that, if enacted, could impose yet another costly mandate on hospitals.
Recently, a petition was filed with the City of Los Angeles that would establish a citywide minimum wage for all employers — including hospitals.
While hospitals are not the intended target of this initiative, the broad language would capture health care employers within city limits. It’s important to note that state law (SB 525) prevents cities and counties from enacting health care-specific minimum wage levels. However, it does not prevent increases when they apply to all employers, which this proposal does. Our legal review confirms hospitals would be impacted.
This petition is one of four separate initiatives recently filed as part of a broader labor effort focused on hotel and airport workers ahead of the 2028 Olympics. If supporters gather enough signatures, the measure will go before the City Council, which could either adopt it directly or place it on the June 2026 ballot. Should the Council adopt the measure, the business community may pursue a referendum, which could also appear on the same ballot.
Although this proposal focuses on the City of Los Angeles, we recognize that if wages increase within city limits, it’s likely that surrounding cities and counties will feel pressure to follow suit in order to remain competitive. It’s important to remember that SEIU secured minimum wage ordinances across the HASC region in recent years. The financial implications for hospitals are real — and they come at a time when hospitals cannot absorb additional, unsustainable cost pressures.
HASC is coordinating with local partners leading opposition efforts, and we are working closely with CHA to ensure hospitals have a seat at the table as this situation unfolds. We will continue to monitor developments, engage with key stakeholders and keep our members informed.
Take care and stay safe.
George G.