Healthcare Industry
New Minimum Wage Increase for Health Care Workers: What You Need to Know
New Minimum Wage Increase for Health Care Workers: What You Need to Know
Senate Bill 525, effective June 1, 2024, introduced significant changes to the minimum wage for health care workers. The bill added Labor Code sections 1182.14 and 1182.15, setting the stage for a substantial increase in the minimum wage for healthcare workers across various facilities, ultimately aiming to raise it to $25 per hour. This new state mandate will override any local minimum wage laws.
However, there has been a recent development. On June 29, 2024, Governor Newsom signed Senate Bill 159, which introduced Labor Code section 1182.16. This new section delays the implementation of these wage increases under specific conditions:
- State Revenue Condition: If state revenues from July 1, 2024, through September 30, 2024, exceed initial projections by at least three percent, the wage increase will be financed for state-run hospitals. If this condition is met, the new minimum wage will take effect on October 15, 2024.
- Medi-Cal Funding Condition: If the Department of Health Care Services (DHCS) informs the Joint Legislative Budget Committee that it has completed the legally required steps to implement increased funding for supplemental Medi-Cal payments, the wage increase will take effect either on January 1, 2025, or 15 days after the DHCS notification, whichever comes first.
Healthcare employers must stay vigilant and prepare for these potential changes to ensure compliance. The exact timing of the minimum wage hike will depend on these financial and administrative developments, so close monitoring of the situation is crucial.