SB 525 was enacted in California last year to raise the minimum wage for many healthcare employees.
With this law, the minimum wage would be raised to $21 in most facilities and as high as $23 or $25 in other health centers. Although this law was set to start June 1, 2024, California’s governor, Gavin Newsom, expressed some concerns because of the state budget deficit of $50 billion. Therefore, the California government enacted SB 828 to delay the start of the law until July 1, 2024.
However, due to the state budget discussion in SB 159, there was an even more significant delay until at least October 15, 2024. If the state’s cash receipts don’t increase at least 3% above projections, the law will not go into effect until 2025. This will give employers more time to prepare for the impacts of the wage increase.