Last fall, California passed S.B. 525, a landmark bill that paves the way for a $25 per hour minimum wage for certain “covered healthcare workers.” The law introduces a phased, incremental wage increase based on factors like facility type, size, and government payor mix.
Initially, the first increase was set for June 1, 2024. However, Governor Newsom delayed its implementation with the signing of S.B. 828, pushing back the wage hike to allow time for budget issues to be resolved. Healthcare employers were informed that the wage increases could begin between October 15, 2024, and January 1, 2025.
Now, the wait is over. Effective October 16, 2024, the first wage increase will take effect, along with a corresponding rise in the exempt employee salary threshold. Healthcare employers across the state need to be prepared.
To stay compliant, covered employers should review the California Labor Commissioner’s updated FAQs, accessible here. Employers are also required to post the “Minimum Wage Supplement for Covered Healthcare Employees” in a common area, such as a break room. You can find the supplement here.
For more information or support in navigating this change, reach out to JorgensenHR at (661) 600-2070. We’re here to help your organization stay ahead of California’s ever-changing employment laws.
If you have any additional questions, please feel free to reach out to JorgensenHR at (661) 600-2070.
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