A new minimum wage law for healthcare workers in California will take effect on October 16, 2024, gradually raising the minimum hourly wage to $25 over the coming years. The increase schedule outlined in SB 525 (Durazo) depends on factors such as industry type, employer size, and other characteristics. Originally set to go into effect earlier this year, the law’s implementation was delayed by SB 159 due to concerns over the state budget.
The legislation also provides a phased approach based on the size and type of healthcare facility and the percentage of government-funded patients served. Additionally, salaried employees at covered employers must earn a monthly salary equivalent to at least 150 percent of the healthcare worker minimum wage or 200 percent of the general minimum wage, whichever is higher.
Employers struggling to meet these new requirements can apply for a one-year waiver or a phased-in schedule, provided they can show that compliance would harm their business operations. Applications must include financial information from parent or affiliated companies and be submitted via the Department of Industrial Relations’ website. Employers are also required to notify employees of the wage increase and comply with other labor laws, such as updating exemption thresholds for salaried employees and determining whether overtime exemptions apply.