Updated: November 12, 2025

Details of our latest offer to the Alliance of Health Care Unions

Kaiser Permanente rewards employees for the excellent care they provide.

We continue our aim of working in partnership to reach a strong, fair agreement that reflects today’s realities and positions us all for long-term stability and success.

Our health care professionals deserve pay that acknowledges their high value while maintaining affordability for our members and communities. We’ve put a strong offer on the table that enhances wages and benefits, while ensuring Kaiser Permanente can continue to grow and innovate for the years to come.

Below are some details of our latest offer for Alliance-represented employees. This reflects major parts of our offer as of November 4, 2025. Bargaining with the Alliance continues, so this information may change. Please visit this page for the latest updates.

Competitive wages

Across-the-board wage increases

Kaiser Permanente offers competitive wages in every one of our markets. Our latest offer provides Alliance union-represented employees strong across-the-board wage increases totaling 21.5% over the 4 years of the contract, including the biggest pay increases proposed for the first 2 years of a national agreement in 2 decades.

Year*	October 2025	October 2026	August 2027	October 2027	October 2028
Wage increase	6.5%	6.5%	3%	2.5%	3%

*The ATBs for each year will be effective on the first day of the pay period closest to the first day of the month and year indicated or upon ratification by the Alliance, whichever is later. The 2025 ATB will be implemented as soon as administratively feasible after contract ratification.

Minimum rate adjustments

A tentative agreement has been reached on minimum rate adjustments in every market:

Northern and Southern California: $25.56 per hour minimum rate
Colorado, Georgia, Mid-Atlantic States, Northwest, and Washington: $22.00 per hour minimum rate
Hawaii: $24.00 per hour minimum rate

The establishment of a minimum rate will bring the first step of all wage scales up to the minimum rate and provide the same increase to all steps above it in those wage scales.

Inland Empire wage scale adjustments

Kaiser Permanente will allocate 2.5% of payroll to adjust the wage scales of certain positions in the Inland Empire (Southern California) to address Alliance concerns about wage parity with similar positions in the Southern California market. This amount will not exceed 9% total when the first-year across-the-board increase is factored in. The allocation will be distributed in 2 equal amounts: the first half effective on the first pay period following July 1, 2026, and the second half on the first pay period following July 1, 2027.

In addition to the above, effective the first pay period following July 1, 2028, Kaiser Permanente will allocate 0.75% of payroll of UFCW L770 Kern and UFCW L770 Kern Admin-Clerical bargaining units for the purposes of adjusting wage scales as determined by mutual agreement of Kaiser Permanente and the unions.

Active medical benefits

We continue to offer our employees high-value medical plans that have very little cost to our employees and their dependents — including copays and deductibles that are much lower than other companies offer. Plus, we offer these great benefits to our part-time employees. Our new offer improves these benefits with:

Coverage for allergy injections in Georgia, Mid-Atlantic States, and Northwest
Coverage for durable medical equipment in Hawaii and Northwest
Coverage for hearing aids in Georgia and Southern California
Coverage for in vitro fertilization in Northwest

Education enhancements

We support our employees to do their best work — today and in the future. We’ve offered to increase our investments in trust funds that help our employees reach their higher education and career development goals:

Increased contribution to the Ben Hudnall Memorial Trust by 40% to provide training and education to Labor Management Partnership union members
Increased contribution of $3 million to the Labor Management Partnership Trust Fund, which supports the activities of the LMP and its several training programs
Increased tuition reimbursement amounts of $500 per year for 4 years:

	January 1, 2026	January 1, 2027	January 1, 2028	January 1, 2029
Maximum tuition reimbursement amount (all markets)	$3,500	$4,000	$4,500	$5,000

An increase in the amount of tuition reimbursement that can be applied to travel expenses to $1,250 (from $750) per year
An increase in the contributions to the International Union of Operating Engineers’ national and local training funds — for which a tentative agreement has been reached
We have offered to make a contribution to the Hotel and Restaurant Industry Employment and Training Trust (HARIETT) in the amount of approximately $400,000 over the term of the agreement.

Retiree medical benefits

Organizations offering retiree medical benefits are becoming increasingly less common. Kaiser Permanente’s offer not only continues our generous retiree medical benefit but enhances its value.

These offers have already received tentative agreements:

For new retirees after January 1, 2026, a supplemental contribution of $15,000 will be credited into their health reimbursement account at age 85 (up from $10,000)
To achieve alignment with other markets, the health reimbursement account will be increased to $2,500 per year of service for new retirees in Northern California, Southern California, and Washington
New retirees in Washington who were hired before January 1, 2021, will get a retiree medical premium subsidy in the amount of $43.05 per month, increasing 3% each year thereafter
In all markets, the retiree medical premium subsidy can be used for any available Kaiser Permanente Senior Advantage plan, not limited to the lowest-cost plan

We’ve also offered to increase contributions to the UNITE HERE Local 5 Health and Welfare Trust in Hawaii.

Retirement income

We want our employees to thrive in retirement, which is why we offer retirement income plans with generous employer contributions. These improvements have been offered:

Extension of the qualified dependent death benefit for eligible dependents for Alliance union-represented employees participating in a defined benefit pension plan
Increases to the employer contribution to International Union of Operating Engineers units participating in the multiemployer pension plan
Improved defined contribution benefits for several units to bring them into alignment with the 1.25% employer match that most Alliance unions have
Creation of a new Cash Balance Plan for UNAC DASH and UNAC UPSC union members in Southern California who are not eligible to participate in the employer-sponsored defined benefit pension plan. This plan provides a guaranteed minimum payout upon retirement, which can be taken as a monthly annuity or lump-sum payment. This would replace the current defined contribution plan for these units, with employer contributions being shifted to the new plan.

Staffing

Several tentative agreements have been reached around staffing and scheduling, including:

The development of staffing dashboards for markets to enable easy access to critical staffing data
Proposing escalation steps to address implementation issues that can’t be resolved by staffing committees
The creation of toolkits and educational materials to support staffing committees and the joint staffing process
Identifying criteria and factors for hard-to-fill positions

In addition, we’ve proposed this language to address the union’s calls for patient scheduling templates:

“When we make changes to patient scheduling templates, we have offered to make good-faith efforts to solicit and consider input from affected employees consistent with the urgency of the situation, while confirming that final decisions remain with the employer to ensure patient and operational needs are met.”

Other enhancements

Performance Sharing Program

The Performance Sharing Program provides a way for Alliance-represented employees to make meaningful contributions to Kaiser Permanente’s success and share in the organization’s performance gains.

We’ve proposed to increase the Alliance PSP payout if the region does not meet its financial gate, to a maximum of $1,200 for eligible full-time status employees, paid in proportion to the percentage share attributed to each goal, based on performance toward each goal. (This is an increase of $200 over the current contract’s $1,000 cap.)

Lactation paid break time

We understand that new mothers need a clean, private place to express breast milk after their baby is born, as well as the time to do it. We are offering Alliance-represented employees up to 60 minutes of paid time per shift, and other reasonable breaks (unpaid), if needed, to do so. This benefit extends for 12 months after the child’s birth.