After the passage of SB 525, covered healthcare employers who are mandated to increase the minimum wage of their affected employees (and contractors) waited patiently as the Legislature voted to delay the implementation of the increase due to budgetary concerns. On October 1, 2024, the California Department of Health Care Services, submitted a notice to the Joint Legislative Budget Committee, with the required data, and triggered the minimum wage increase to go into effect on October 16, 2024.
The below chart from the Department of Industrial Relations details the incremental increase and deadlines per type of healthcare facility.
DIR Health Care Worker Minimum Wage FAQ’s
| Type of Health Care Facility | Minimum Wage when the law takes effect | Full Minimum Wage Schedule |
|---|---|---|
| Hospital or integrated health system with 10,000 or more full-time employees (including skilled nursing facilities operated by these employers) | $23 | 10/16/24 to 6/30/25: $23 7/1/25 to 6/30/26: $24 7/1/26 to 12/31/27: $25 1/1/28: adjusted for inflation each year |
| Dialysis Clinics | $23 | 10/16/24 to 6/30/25: $23 7/1/25 to 6/30/26: $24 7/1/26 to 12/31/27: $25 1/1/28: adjusted for inflation each year |
| Safety Net Hospitals | $18 | 10/16/24 to 6/30/25: $18 6/1/25 to 6/30/33: increases 3.5% each year 7/1/33 to 12/31/34: $25 1/1/35: adjusted for inflation each year |
| Intermittent clinics, community clinics, rural health clinics, or urgent care clinics associated with community or rural health clinics | $21 | 10/16/24 to 6/30/26: $21 7/1/26 to 6/30/27: $22 7/1/27 to 12/31/28: $25 1/1/29: adjusted for inflation each year |
| All other covered health care facilities not listed in the other categories and not run by Counties | $21 | 10/16/24 to 6/30/26: $21 7/1/26 to 6/30/28: $23 7/1/28 to 12/31/29: $25 1/1/30: adjusted for inflation each year |
| Covered Health Care Facilities run by Large Counties (more than five million people as of 1/1/23) | $23 (no earlier than 1/1/25) | 1/1/25 to 6/30/25: $23 7/1/25 to 6/30/26: $24 7/1/26 to 12/31/27: $25 1/1/28: adjusted for inflation each year |
| Covered Health Care Facilities run by Medium Sized Counties (250,000 to five million people as of 1/1/23) | $21 (no earlier than 1/1/25) | 1/1/25 to 6/30/26: $21 7/1/26 to 6/30/28: $23 7/1/28 to 12/31/29: $25 1/1/30: adjusted for inflation each year |
| Covered Health Care Facilities run by Small Counties (less than 250,000 people as of 1/1/23) | $18 (no earlier than 1/1/25) | 1/1/25 to 6/30/25: $18 6/1/25 to 6/30/33: increases 3.5% each year 7/1/33 to 12/31/34: $25 1/1/35: adjusted for inflation each year |
| Skilled Nursing facilities not owned, operated, or controlled by a hospital, integrated health care delivery system, or health care system: **Only takes effect if a patient care minimum spending requirement is passed | No effective date | Schedule if a patient care minimum spending requirement is passed: Once spending requirement passed to 6/30/26: $21 7/1/26 to 6/30/28: $23 7/1/28 to 12/31/29: $25 1/1/30: adjusted for inflation each year |
If you have questions about the above and whether it applies to your business, please contact the team at WorkWise Law, PC.
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