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California employers in the health care industry should prepare for increased scrutiny of executive compensation as a new statewide initiative heads toward the November 3, 2026, General Election ballot.
The California Secretary of State announced that Initiative 1985, formally titled “Limits Compensation for Health Care Executives, Managers, and Administrators. Initiative Statute,” became eligible for the ballot on May 12, 2026. READ MORE
A California ballot initiative to establish a $450,000 compensation limit for healthcare executives qualified for the 2026 ballot on May 12. The limit would be increased by 3.5% or the annual rate of change in the U.S. Consumer Price Index for Urban Wage Earners and Clerical Workers (U.S. CPI-W), whichever is lower. The initiative would apply to executives and managers of private hospitals, private physician groups, and public hospitals owned by special districts, and exclude county-operated hospitals and physician groups with fewer than 25 employees. The limit would be effective for the 2027 calendar year. READ MORE