Also see: Minimum Wage Rates in Los Angeles County (All Other Los Angeles County Communities and Sectors).
SB 525, the $25 minimum health wage law, was signed by Gov. Gavin Newsom on October 13, 2023. Nevertheless, the governor had reservations about the cost of the law and these came to the forefront just three months later. Then, budget analyts projected an added $4 billion cost for state-employed health care workers to a state budget already in deficit territory. Newsom called for the state legislature to revisit the law and add an annual trigger tied to ongoing state revenues. He further asked for clarification of exactly who would be covered by new health care minimum wage rates. Currently, the law applies to almost all employees of covered health care facilities, regardless of their actual job and whether they work in direct patient care.
As of June 27, 2024, the target for implementation of the new wage rate has been pushed back from June 1 to July 1. It is further expected to be pushed back, yet again, to at least October 15. The final date will depend upon expected incoming state revenue in the first quarter of the upcoming fiscal year (July 1, 2024 through September 30, 2024). If revenues fall short, the delay for implementation may be pushed back to January 1, 2025.
| Health care facilities with 10,000 or more full-time employees or; any health care facility in an integrated health care delivery system or health care system with 10,000 or more full time employees; or dialysis clinics; or a health facility owned, affiliated or operated by a county with a population of more than five million people. | Hourly Rate |
|---|---|
| June 1, 2024 to May 31, 2025 | $23.00 |
| June 1, 2025 to May 31, 2026 | $24.00 |
| June 1, 2026 until further adjustment | $25.00 |
| Hospitals with high Medicare/Medicaid patient populations, rural independent health care facilities, and health care facilities owned, affiliated or operated by a county with a population of less than 250,000. | Hourly Rate |
|---|---|
| June 1, 2024 to May 31, 2033, with 3.5% annual increases | $18.00 |
| June 1, 2033 until further adjustment | $25.00 |
| Free clinics not operated or maintained by a government entity, community clinics, associated intermittent clinics, rural health clinics and urgent care clinics. | Hourly Rate |
|---|---|
| June 1, 2024 to May 31, 2026 | $21.00 |
| June 1, 2026 to May 31, 2027 | $22.00 |
| June 1, 2027 until further adjustment | $25.00 |
| Licensed skilled nursing facilities when a patient care minimum spending requirement is in effect. | Hourly Rate |
|---|---|
| June 1, 2024 to May 31, 2026 | $21.00 |
| June 1, 2026 to May 31, 2028 | $23.00 |
| June 1, 2028 until further adjustment | $25.00 |
| All Other Employers Providing Patient Care, Healthcare Services, or Other Services Supporting the Provision of Healthcare. | Hourly Rate |
|---|---|
| June 1, 2024 to May 31, 2026 | $21.00 |
| June 1, 2026 to May 31, 2028 | $23.00 |
| June 1, 2028 until further adjustment | $25.00 |
Source: California Legislative Information
