After the passage of SB 525, covered healthcare employers who are mandated to increase the minimum wage of their affected employees (and contractors) waited patiently as the Legislature voted to delay the implementation of the increase due to budgetary concerns. On October 1, 2024, the California Department of Health Care Services, submitted a notice to the Joint Legislative Budget Committee, with the required data, and triggered the minimum wage increase to go into effect on October 16, 2024.

The below chart from the Department of Industrial Relations details the incremental increase and deadlines per type of healthcare facility.

DIR Health Care Worker Minimum Wage FAQ’s

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Type of Health Care Facility Minimum Wage When Law Takes Effect Full Minimum Wage Schedule
Hospital or integrated health system with 10,000+ full-time employees (including skilled nursing facilities operated by these employers) $23 10/16/24–6/30/25: $23
7/1/25–6/30/26: $24
7/1/26–12/31/27: $25
1/1/28: adjusted annually for inflation
Dialysis Clinics $23 10/16/24–6/30/25: $23
7/1/25–6/30/26: $24
7/1/26–12/31/27: $25
1/1/28: adjusted annually for inflation
Safety Net Hospitals $18 10/16/24–6/30/25: $18
7/1/25–6/30/33: increases 3.5% each year
7/1/33–12/31/34: $25
1/1/35: adjusted annually for inflation
Intermittent clinics, community clinics, rural health clinics, or urgent care clinics associated with community/rural health clinics $21 10/16/24–6/30/26: $21
7/1/26–6/30/27: $22
7/1/27–12/31/28: $25
1/1/29: adjusted annually for inflation
All other covered health care facilities not listed elsewhere and not run by counties $21 10/16/24–6/30/26: $21
7/1/26–6/30/28: $23
7/1/28–12/31/29: $25
1/1/30: adjusted annually for inflation
Covered Health Care Facilities run by Large Counties (pop. >5M as of 1/1/23) $23 (no earlier than 1/1/25) 1/1/25–6/30/25: $23
7/1/25–6/30/26: $24
7/1/26–12/31/27: $25
1/1/28: adjusted annually for inflation
Covered Health Care Facilities run by Medium Counties (pop. 250K–5M as of 1/1/23) $21 (no earlier than 1/1/25) 1/1/25–6/30/26: $21
7/1/26–6/30/28: $23
7/1/28–12/31/29: $25
1/1/30: adjusted annually for inflation
Covered Health Care Facilities run by Small Counties (pop. <250K as of 1/1/23) $18 (no earlier than 1/1/25) 1/1/25–6/30/25: $18
7/1/25–6/30/33: increases 3.5% each year
7/1/33–12/31/34: $25
1/1/35: adjusted annually for inflation
Skilled Nursing Facilities not owned/operated by hospitals or systems (only if a patient care minimum spending requirement is passed) No effective date Once requirement passes–6/30/26: $21
7/1/26–6/30/28: $23
7/1/28–12/31/29: $25
1/1/30: adjusted annually for inflation

If you have questions about the above and whether it applies to your business, please contact the team at WorkWise Law, PC.

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The information provided on this website includes general information about legal issues and developments in the law. Such materials are for informational purposes only and may not reflect the most current legal developments. These informational materials are not intended, and must not be taken, as legal advice on any particular set of facts or circumstances. This website is not presented as a substitute for obtaining legal advice from a licensed attorney, nor should you rely on anything on this website for legal purposes without seeking legal advice from a licensed attorney.

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