On October 16, 2024, California’s healthcare worker minimum wage took effect with different rates for different types of covered healthcare facilities. And on July 1, 2026, all facilities covered under California’s healthcare worker minimum wage will see those rates increase.
On July 1, the following facilities will increase from $24 per hour to $25 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 healthcare facilities run by large counties with more than five million people as of January 1, 2023.
On July 1, the following facilities will increase from $18.63 per hour to $19.28 per hour:
- Hospitals with 90% or more of their patients paid for by Medicare or Medi-Cal;
- Independent hospitals with 75% or more of their patients paid for by Medicare or Medi-Cal;
- Rural independent covered healthcare facilities; and
- Covered healthcare facilities run by small counties with fewer than 250,000 people.
On July 1, the following facilities will increase from $21 per hour to $22 per hour:
- Intermittent clinics;
- Community clinics;
- Rural health clinics; and
- Urgent care clinics associated with community or rural health clinics
In addition, covered healthcare facilities run by medium-sized counties (250,000 to 5,000,000 people) and all other covered facilities not identified above will increase their minimum wage from $21 per hour to $23 per hour. The DLSE’s Health Care Worker Minimum Wage FAQs identifies all covered facilities.
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, this definition covers basically all employees working for a covered healthcare facility, whether they’re directly providing healthcare services or not.
In addition, covered healthcare employees include workers that meet both:
- The employee’s employer contracts with the healthcare facility employer, or with a contractor or subcontractor to the healthcare facility employer, to provide healthcare services or services supporting the provision of healthcare.
- The healthcare 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, a covered healthcare employee includes all employees performing contracted or subcontracted work primarily on the premises of a healthcare facility to provide healthcare services or services supporting the provision of healthcare.
Further, the healthcare worker minimum wage alters how exempt covered healthcare 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 healthcare employees must be paid the higher of either two times the standard statewide minimum wage or 1.5 times the applicable healthcare worker minimum wage.
Starting July 1, employers covered by the increase to $23 per hour must pay their exempt employees an annual salary of $71,760, and employers covered by the increase to $25 per hour must pay exempt employees an annual salary of $78,000.
Covered healthcare facilities must post a supplemental minimum wage notice in the workplace alongside the regular minimum wage notice. As of publication, the 2026 supplemental notice has not been published. Employers should continue to review the DLSE FAQs for the eventual publication of that notice so it can be posted by July 1.
Healthcare 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.
