AB 204 Provides Health Care Workers Community Clinic Retention Bonus

As part of California’s health care spending budget for the coming year, Governor Gavin Newsom signed legislation that awards $1,000 each to employees of community health clinics, in the form of a one-time bonus. With approximately 70,000 eligible employees throughout the state, this represents a total expenditure of $70 million— a substantial benefit going directly to front-line workers. Community health clinics are enormously important in managing the COVID-19 pandemic and other public health issues, and it is crucial that these clinics are able to retain qualified, experienced workers. Assembly Bill 204 should be a significant positive step in stabilizing this important workforce, which has been hit hard by recent staffing shortages.

Eligible for the bonus are any non-supervisory employees of Federally Qualified Health Clinics (FQHCs), FQHC “look-a-likes,” free clinics, tribal health clinics, Rural Health Clinics (RHCs), and various other community health clinics. Both full-time and part-time workers are eligible. The bill requires all covered clinics to submit the names of their eligible employees to the state, which will then provide the bonuses to each clinic. Once this process is complete, employers are required to distribute the bonuses to their eligible workers.

Unions representing health care workers should be aware of this bonus program and attempt to ensure that employers timely report their eligible employees.  If you have questions about this process, contact your labor law counsel.