California Gov. Gavin Newsom recently signed several new employment laws impacting California employers. Unless otherwise specified, those laws, which are summarized below, take effect on January 1, 2024.
Minimum wage increases
In the new year, the general statewide minimum wage will increase by 50 cents, to $16 per hour. The minimum exempt salary for California employees, which is tied to the state’s minimum wage, will rise from $64,480 to $66,560. (Note: Many cities have their own minimum wage requirements that are higher than the state’s minimum wage.)
The state also passed extensive legislation implementing minimum wages for specific industry employers, including healthcare facilities, as well as a $20 minimum wage for fast food workers beginning April 1, 2024.
Healthcare minimum wage
Senate Bill 525 will require virtually all California healthcare facilities to meet certain minimum wage schedules beginning June 1, 2024. The applicable minimum wage schedules (from $18 per hour up to $23 per hour) will depend on the type of healthcare facility and the nature and size of the business.
A covered “health care employee” is expansively defined to include healthcare providers, as well as those not directly involved in patient care, such as janitors, housekeeping staff, and clerical and food service workers. Notably, the expansive definition includes certain contracted or subcontracted employees if there is a contract with the healthcare facility employer to provide...
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