California Deficit Casts Shadow Over Health-Care Worker Pay Law

A major labor union says California budget officials are overstating the likely cost of a new law raising the minimum wage for more than 400,000 health-care workers across the state.

Gov. Gavin Newsom (D) has pledged to work with legislative leaders to change the measure (S.B. 525) as the state faces a $68 billion budget deficit, casting uncertainty over plans to phase in higher minimum pay in hospitals, nursing homes and other medical facilities.

But the president of the SEIU-United Healthcare Workers West, which backed the law, argues the actual cost will be lower than the $2 ...