On October 16, 2024, California’s health care worker minimum wage took effect with different rate schedules for different types of covered health care facilities. And on July 1, 2025, two rate schedules for certain health care employees will increase.
On July 1, the following facilities will increase their minimum wage from $23 per hour to $24 per hour:
- Hospitals or integrated health systems with 10,000 or more full-time employees, including skilled nursing facilities operated by these employers;
- Dialysis clinics; and
- Covered health care facilities run by large counties with more than five million people as of January 1, 2023.
Also on July 1, the following facilities will increase their minimum wage from $18 per hour to $18.63 per hour:
- Hospitals with 90 percent or more of its patients paid for by Medicare or Medi-Cal;
- Independent hospitals with 75 percent or more of its patients paid for by Medicare or Medi-Cal; and
- Rural independent covered health care facilities.
The California Department of Health Care Access maintains a list of the “Safety Net” facilities that fall within this category. In addition, the health care worker minimum wage for covered health care facilities run by small counties with fewer than 250,000 people will also increase from $18 per hour to $18.63 per hour.
As a reminder, the definition of “health care employee” is incredibly broad — including “an employee of a health care facility employer who provides patient care, health care services, or services supporting the provision of health care.” This definition includes employees performing work, regardless of formal job title, in the occupation of:
- Nurse;
- Physician;
- Caregiver;
- Medical resident, intern or fellow;
- Patient care technician;
- Janitor;
- Housekeeping staff person;
- Groundskeeper;
- Guard;
- Clerical worker;
- Nonmanagerial administrative worker;
- Food service worker;
- Gift shop worker;
- Technical and ancillary services worker;
- Medical coding and billing personnel;
- Scheduler;
- Call center and warehouse worker; and
- Laundry worker.
In other words, basically all employees working for a covered health care facility whether they are directly providing health care services or not are covered.
In addition, “covered health care employees” includes workers that meet both of the following:
- The employee’s employer contracts with the health care facility employer, or with a contractor or subcontractor to the health care facility employer, to provide health care services, or services supporting the provision of health care.
- The health care facility employer directly or indirectly, or through an agent or any other person, exercises control over the employee’s wages, hours or working conditions.
Finally, “covered health care employee” includes all employees performing contracted or subcontracted work primarily on the premises of a health care facility to provide health care services or services supporting the provision of health care.
Further, the health care worker minimum wage alters how exempt covered health care employees are paid. Unlike state law where an exempt employee is paid a salary at the equivalence of two times the standard statewide minimum wage, exempt covered health care employees must be paid the higher of either two times the standard statewide minimum wage or 1.5 times the applicable health care worker minimum wage. This means that for employers covered by the increase to $24 per hour, exempt employees must be paid at least a salary of $74,880 starting July 1.
Finally, covered health care employers must post a supplemental minimum wage notice in their workplace alongside the regular statewide minimum wage notice that is referenced in the Department of Industrial Relations’ FAQ.
Health care employers with additional questions should consult with legal counsel to prepare for the upcoming increases as needed.
Matthew J. Roberts, Associate General Counsel, Labor and Employment
CalChamber members can read more about the Wage and Hour Requirements for Specific Industries in the HR Library. Not a member? Learn how to power your business with a CalChamber membership.
