On October 13, 2023, California Governor Gavin Newsom signed into law Senate Bill 525, codifying Labor Code sections 1182.14 and 1182.15. The new law establishes five separate minimum wage schedules for all health care employees that will become effective June 1, 2024. The wage schedule departs from the general statewide $15.00 per hour minimum wage applicable to other hourly paid employees, except for restaurant workers who also recently received a minimum wage increase.
The law classifies covered health care employers as “covered health care facility employer with 10,000 or more full-time equivalent employees” or a “hospital with a high governmental payor mix,” among others, and applies different wage schedules to these classifications. “Covered Health Care Facilities” includes the following: facilities or work sites that are part of an integrated health care delivery system; acute care hospitals; acute psychiatric hospitals; licensed skilled nursing facilities if owned, operated or controlled by a hospital or integrated health care delivery system or health care system; licensed home health agencies; licensed rehab clinics; physician group practice offices who provide services to members of a group practice prepayment health care service plan; community clinics; rural health clinics; ambulatory surgical centers certified to participate in Medicare; and physician groups.
The minimum wage for health care employees working for a covered health care facility with 10,000 or...
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