Healthcare employers in California have spent the past six months making plans to comply with the state’s new minimum wage requirements for healthcare workers. SB 525 which requires hospitals, clinics and many other healthcare facilities to increase employee minimum hourly wages to $21 – $23, depending on the size and type of facility, is scheduled to go into effect on June 1. However, if the law’s author, state senator Maria Elana Durazo, is successful, healthcare employers could get a brief reprieve until July 1.
It appears that the state needs more time to prepare for the financial impact of SB 525, which is projected to result in a $4 billion annual cost to the state. This week, Senator Durazo proposed an expedited bill (SB 828) to give the state – and private healthcare employers—another month before they need to pay the increased wages. The measure is expected to pass and be signed by the governor before June 1.
Healthcare employers should speak to counsel to stay informed of the proposed change but should not in any way rely on it until the proposed delay has been passed by the legislature and signed by the governor.
DISCLAIMER
The information provided on this website includes general information about legal issues and developments in the law. Such materials are for informational purposes only and may not reflect the most current legal developments. These informational materials are not intended, and must not be taken, as legal advice on any particular set of facts or circumstances. This website is not presented as a substitute for obtaining legal advice from a licensed attorney, nor should you rely on anything on this website for legal purposes without seeking legal advice from a licensed attorney.