Under Senate Bill 525, healthcare facilities in California will be subject to a tiered minimum wage system for all workers. Its scope includes most types of healthcare facilities operating in the state, including licensed skilled nursing facilities and home health agencies, medical clinics, and hospitals. However, hospitals operated, controlled, or owned by the Department of State or facilities exempt from licensing under tribal laws are not subject to the new legislation.
All eligible workers include employees performing the duties of nurses, caregivers, physicians, residents, fellows, interns, patient care technicians, housekeepers, janitors, guards, clerical workers, groundskeepers, food service workers, gift shop workers, medical coders, schedulers, warehouse workers, call center workers, laundry workers, and medical billers. Outside salespeople who work in healthcare are not included in the bill, nor are employees working in the public sector whose primary duties are not healthcare services.
The minimum wage level depends on the facility in which an eligible worker performs duties, and the rate is slated to go up multiple times between June 1, 2024, and June 1, 2026.
This article is informational and does not constitute legal or financial advice. Consult with an employment lawyer or accountant for additional clarification on how these changes impact your company.