6 Important Things About The Minimum Wage Increase For CA Healthcare Workers

Do you work in healthcare? You may be affected by a new California law that raises the minimum wage in all healthcare facilities.

Healthcare workers are essential to every community. Unfortunately, there’s a patient care crisis in California, and healthcare workers are needed in every part of the state. In passing the new law, lawmakers hope to attract more healthcare workers to the state and retain the ones that are already there.

Here are six important facts you need to know about the minimum wage increase for California healthcare workers.

6 Things Every California Healthcare Worker Should Know about the New Minimum Wage

1. The Minimum Wage For Healthcare Workers Is Now $23 Per Hour For Some Employers

Large health centers must pay at least $23 per hour. 

These institutions include:

• Medical systems that have 10,000 or more employees
• Medical systems that are owned, operated or affiliated by a county with more than 5 million residents, such as Los Angeles County
• All dialysis centers, regardless of size

Other healthcare settings must pay this higher wage, including:

• Outpatient clinics
• Surgical clinics
• Home health care
• Urgent care clinics

Smaller healthcare centers must pay at least $21 per hour. The law requires some other healthcare organizations to only pay at least $18 per hour. 

These organizations include:

• Those serving high populations of Medicare or Medicaid patients
• Medical centers in rural areas
• Facilities owned, affiliated or operated by counties with fewer than 250,000 residents

2. The Minimum Wage Will Increase $1/Hour Per Year In 2025 And 2026

The minimum wage for healthcare workers will increase to $24/hour in 2025 and then to $25/hour in 2026.

3. The New Law Covers Nearly Everyone Working In A Healthcare Organization

Almost all employees who work in healthcare facilities are guaranteed a higher minimum wage, whether they work directly with patients or not. The new law covers technical workers, for example, and workers in janitorial, housekeeping, and groundskeeping services.

4. It Does Not Apply To Some Healthcare Workers

The new minimum wage law does not apply to outside medical transport workers, such as EMT and ambulance workers.

5. The Law Went Into Effect On July 1, 2024

Gov. Gavin Newsom signed S.B. 525 into law in October 2023. It was to take effect in June of 2023, but was delayed to align with the state’s fiscal year.

6. The Law Will Help Hundreds Of Thousands Of Healthcare Workers Just Like You

Prior to the signing of this bill into law, healthcare workers could earn the state’s new basic minimum wage of $16/hour, which took effect on January 1, 2024. The minimum wage increase will boost earnings by an average of $6,400 for more than 425,000 Californians.

Is Your Boss Paying You Less than Minimum Wage for Healthcare Work? Contact Your Employment Attorneys At D.Law!

If you are a healthcare worker in California, you may have the right to earn a higher minimum wage than other workers. While most healthcare organizations meet this new standard, others are trying to pay their healthcare workers less than they deserve. If you are one of them, contact or call D.Law. Our employment attorneys can help you exercise your rights as a worker in the Bay Area, San Diego, Fresno, Los Angeles, and other California cities.