As previously reported, effective June 1, 2024, Senate Bill 525 created Labor Code sections 1182.14 and 1182.15 to substantially increase minimum wage for health care workers in various facilities, eventually raising the minimum wage to $25/hour, superseding local minimum wage laws.

On June 29, 2024, Governor Newsom signed Senate Bill 159 which, among other things, added Labor Code section 1182.16 to delay the implementation of all such minimum wage hikes until either:

1. State revenues, from July 1, 2024 through September 30, 2024, are at least three percent higher than initially projected in order to finance the wage increase in state-run hospitals, in which case the minimum wage increases shall occur on October 15, 2024, or

1. The Department of Health Care Services (DHCS) notifies the Joint Legislative Budget Committee (Budget Committee) that it has taken legally-required steps to implement increased funding of supplemental Medi-Cal program payments, in which case the minimum wage increases shall occur the earlier of January 1, 2025, or 15 days after the date of DHCS's notification.

Take-Aways:

Covered health care employers must closely monitor and prepare for the effective date of these minimum wage increases.

For further information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.

See also:

• California Minimum Wage Mid-Year Rate Increases (June 28, 2024)
• 5.5M To Settle Wage Theft Claim, Elderly Care Provider Fought Underpayment Citations for Five Years (January 5, 2024)

Cindy Bamforth
July 31, 2024