Covered Healthcare Employers: The Minimum Wage Increase is Here!
Posted October 10, 2024

California enacted S.B. 525 last fall. That bill purported to phase-in a $25 per hour minimum wage for certain “covered health care workers.” To do this, the bill created a multi-part incremental minimum wage phase-in for covered healthcare employers based on, among other factors, facility type, size, and governmental payor mix.

The first increase was initially scheduled to occur on June 1, 2024. As we know, S.B. 525 did not take effect on June 1, 2024, as anticipated. Governor Newsom instead delayed S.B. 525’s implementation by signing S.B. 828, which put S.B. 525 into a holding pattern until budget issues were resolved. Healthcare employers were told that the incremental increases could start as early as October 15, 2024, but no later than January 1, 2025. Additional information on S.B. 525 and S.B. 828 are viewable in our recent article here.

Since S.B. 828 became effective, covered healthcare employers have anxiously awaited news from the government about when the statewide minimum wage for their covered workers would begin increasing their bottom line. The wait is now over. The first increment of increase in California’s statewide minimum wage for covered healthcare workers, and the corresponding exempt employee salary threshold increase, will take effect on October 16, 2024.

For covered employers seeking additional information, the California Labor Commissioner has posted updated FAQs, which are accessiblehere.

Covered employers must also post the “Minimum Wage Supplement For Covered Healthcare Employees”. This posting must be in a common area (i.e., the place where all other postings are located) or in another area regularly visited by employees (like a break room or kitchen area). You can find that supplement here.

For questions about employment law issues, contact the attorneys at LightGabler LLP.For questions about employment law issues, contact the attorneys at LightGabler LLP.

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