A new minimum wage increase for California healthcare workers will finally take effect on October 16. This will raise the minimum wage to $21 and even $23 in some larger healthcare facilities. Gradually, increases will be made until healthcare employers comply with a $25 per hour minimum that will be adjusted for inflation each year.
Background on SB 525
Although this healthcare minimum wage increase was signed last year and expected to take effect earlier, it was pushed back due to budget concerns. However, on October 1, lawmakers were made aware that one condition had been met, and this law could finally take effect.
All healthcare employers must comply with SB 525. It’s also important to note that minimum wage increases will happen in four stages. These four stages will be gradual over the next three years, and the healthcare minimum wage will increase from $21 to $25. Also, this minimum wage will be adjusted for inflation each year.
What Should Healthcare Employers Do?
Healthcare employers covered under this law must act now to meet compliance.
All employers must post a notice regarding the increased minimum wage at their workplace and provide notices to employees. Employers must also ensure compliance and review wage and hourly practices. It would be a good idea to consult with employment counsel to determine how this new law will affect business.
Further information to come.