Update on the Healthcare Worker Minimum Wage

Last year, we covered a truly historic piece of legislation: SB 525, California’s first-in-the-nation $25 minimum wage for healthcare workers. As a refresher, this law raised the minimum wage for over 400,000 workers who provide direct patient care or support services at large hospitals, dialysis clinics, community clinics, and various other healthcare institutions.

After some unfortunate budget-related delays, including this year’s SB 828, which delayed implementation by one month, the first stages of the planned minimum wage increase went into effect in October 2024.

Here is what workers need to know:

·         For most employees of large private hospitals, large health systems, large county hospitals, and dialysis clinics, the minimum wage will be:

o   $23 per hour until June 30, 2025;
o   $24 per hour from July 1, 2025, to June 30, 2026; and
o   $25 per hour on July 1, 2026.

·         For most clinic employees, the minimum wage will be:

o   $21 per hour until June 30, 2026;
o   $22 per hour from July 1, 2026, to June 30, 2027; and
o   $25 per hour on July 1, 2027.

·         For most other healthcare workers, the minimum wage will be:

o   $21 per hour until June 30, 2026;
o   $23 per hour from July 1, 2026, to June 30, 2028;
o   $25 per hour on July 1, 2028.

·         Note that for employees of certain “financially distressed” hospitals, the minimum wage will not reach $25 until 2033.

There are plans for additional wage increases beyond $25 per hour based on adjustments for inflation.

If you have questions about this minimum wage law, please contact your usual labor law counsel.