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New Minimum Wage for California’s Healthcare Workers is Here

Highlights

  • The delayed legislation that sets a new minimum wage for California’s healthcare workers finally took effect on October 16th, 2024.
  • The law provides different pay scales for employees based on where they work and who they work for.
  • At WorkLogic HR, we help California businesses stay compliant with the latest labor regulations while simplifying their HR-related tasks. Contact us for a free HR consultation!

After months of being delayed, the law providing a new minimum wage for California’s healthcare workers has finally taken effect. Starting October 16th, the law provides a substantial pay increase for covered healthcare workers reaching up to $23 per hour initially and gradually rising to $25 per hour over time.

If you are a California healthcare employer, here’s what you need to know:

The New Minimum Wage Law Covers Employees of Healthcare Facilities Providing Patient Care, Healthcare Services, or Any Services That Support the Provision of Healthcare

New Minimum Wage for Healthcare Workers since October 16th

According to California Senate Bill Nº 525, these are the new minimum wages for covered healthcare employees:

  • Healthcare facilities with 10,000 or more full-time equivalent employees: $23 per hour
  • Dialysis clinics: $23 per hour
  • Hospitals with a higher governmental payor mix, independent hospitals with an elevated governmental payor mix, or rural independent healthcare facilities: $18 per hour
  • Intermittent clinics, community clinics, rural health clinics, or urgent care clinics associated with community or rural health clinics except for those that have been granted a waiver to postpone the minimum wage increase: $21 per hour
  • Other covered healthcare facilities: $21 per hour

Which Workers are Covered by this Law?

The new law applies to a broad range of healthcare workers in California. Specifically, it covers:

  • Employees of healthcare facilities providing patient care, healthcare services, or any services that support the provision of healthcare. This includes a wide variety of job roles, from nurses, physicians, and caregivers, to housekeeping staff, food service workers, and medical billing personnel, among others.
  • Contracted or subcontracted employees who have a contract with the healthcare facility employer, or with a contractor or subcontractor, to provide healthcare services or services that support the provision of healthcare. If a healthcare facility exercises control over their wages, hours, or working conditions, these employees are also covered.

For a complete list of exclusions and further details, please consult the full text of the law.

How to Stay Compliant

California employers in the healthcare sector must adhere to the state’s new minimum wage regulations.

Here’s a step-by-step guide to ensure compliance:

  • Conduct an audit of all employees’ salaries and hourly wages to determine how to apply the new minimum wage rates to your workforce.
  • Ensure that all policies and practices, including pay stubs, fee classifications, payroll systems, and budgets, are aligned with the new minimum wage. Implement systems to accurately track employee hours and ensure that benefits align with wage requirements.
  • Post a notice in the workplace and clearly communicate to employees the new minimum wage schedule implemented from October 16th onwards. Ensure that employees understand the changes and their rights under the new law.
  • Regularly review the latest labor regulations in California and other states to stay updated on any changes that may affect your compliance.
  • Consult with legal professionals or HR experts to ensure that your compliance efforts are accurate and avoid penalties.
Healthcare Employers in California Must Ensure That All Policies and Practices Are Aligned with the New Minimum Wage.

Stay Compliant in California with WorkLogic HR

Offering competitive wages is the best way to attract and retain talent. And that’s especially true for the healthcare sector, where specialized skills and expertise are crucial to providing high-quality patient care.

The new minimum wage law for California’s healthcare workers will impact nearly 426,000 workers, making it essential for healthcare employers to stay compliant with the new regulations.

Keeping up with the ever-changing employment regulations in California can be challenging, but WorkLogic HR can help. Our comprehensive HR and compliance solutions provide guidance, resources, and support to ensure your organization remains compliant with all applicable labor laws.

Ready to learn more about how WorkLogic HR can help your organization run smoothly and stay compliant? Contact us today to schedule a consultation.

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Disclaimer: The information and resources provided herein are not a substitute for experienced legal counsel and does not constitute legal advice or attempt to address the numerous factual issues that inevitably arise in any employment-related dispute. Although this information attempts to cover some major recent developments, it is not all-inclusive, and any recommendations are based upon HR best practices and procedures. We recommend you consult an attorney for legal guidance.

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