SB 525: New Minimum Wage Requirements for Healthcare Providers

Effective June 1, 2024, minimum wage for healthcare providers with 10,000 or more full-time equivalent employees will increase:

• $23 per hour from 6/1/24 to 5/31/25
• $24 per hour from 6/1/25 to 5/31/26
• $25 per hour from 6/1/26 until annually adjusted

Hospitals

• $18 per hour from 6/1/24 to 5/31/33 with 3.5% annual increases
• $25 per hour from 6/1/33 until annually adjusted

Clinics

• $21 per hour from 6/1/24 to 5/31/26
• $22 per hour from 6/1/26 to 5/31/27
• $25 per hour from 6/1/27 until annually adjusted

All Other Covered Health Care Facility Employers

• $21 per hour effective June 1, 2024
• $23 per hour effective June 1, 2026
• $25 per hour effective June 1, 2028

• Salaried Employees must earn a monthly salary equivalent to no less than 150% of the health care worker minimum wage or 200% of the applicable minimum wage, whichever is greater.
• The California Medical Association has informed members that doctor’s office with 24 or less employees are exempt from this law, however, we have not been able to confirm this. Here is a link: https://www.cmadocs.org/newsroom/news/view/ArticleID/50551/t/New-health-care-worker-minimum-wage-takes-effect-June-1-IPAs-and-small-physician-practices-exempt
• Consult with your employment counsel to determine if the minimum wage requirements apply to your business, what workers are covered under the bill, and whether your business qualifies for a waiver.
• Revise applicable policies to ensure compliance and review their wage and hour practices.
• With a higher minimum wage comes higher meal and rest period premiums, higher reporting time pay, higher split shift premiums, and higher waiting time penalties.
• SB 525 extends to independent contractors.