SB 525 will ultimately increase the minimum wage for health care workers to $25/hr. Law expands definition of employees who will be considered health care workers for coverage purposes. Law allows waiver for certain covered health care employers who claim they cannot comply with pay requirements.

California recently enacted Senate Bill 525, adding sections 1182.14 and 1182.15 to the California Labor Code and substantially raising the base minimum wage for health care workers. The new law also expands the definition of covered “health care” positions to include virtually any employee who works in the health care setting. The stated purpose of SB 525 is to combat California’s shortage of health care workers and create a “stable workforce.” The minimum wage for all healthcare employees will ultimately increase to $25 per hour, with the first incremental increase above the general state minimum wage to occur on June 1, 2024. The rate at which the minimum wage increases take effect will vary depending upon the size and nature of the employer.

Which Employers Are Covered?

Sections 1182.14 and 1182.15 apply to nearly every type of medical employer except hospitals owned/controlled by the State Department of State Hospitals, tribal clinics exempt from licensure, and outpatient settings operated by tribal organizations. Covered employers include:

• Facilities or other work sites that are part of an integrated health care delivery system;
• Licensed general acute care...

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