EMPLOYMENT LAW NEWS
Compliance Conundrum: What’s the Effective Date of California’s Health Care Minimum Wage Law Now?
By Jana Bjorklund, GovDocs Senior Counsel and Director
Employment Law and Compliance
Published July 9, 2024

California Governor Gavin Newsom recently signed Senate Bill 159 (SB 159), further delaying implementation of the increased minimum wage rate for health care workers until at least October 15, 2024.
California’s health care minimum wage was initially set to increase on June 1, 2024, but was delayed to July 1, 2024.
And then, on June 29, 2024, right before the new wage was set to go into effect, California Governor Gavin Newsom signed Senate Bill 159 (SB 159), which further delays implementation of the increased minimum wage rate for health care workers until at least October 15, 2024.
SB 159 amends the effective date of the increased health care workers minimum wage until one of the following occurs:
- If on or before October 15, 2024, the Director of Finance notifies the Joint Legislative Budget Committee that the Department of Finance has determined that the agency cash receipts from July 1, 2024 through September 30, 2024 are at least 3% higher than projected at the time of enactment of the 2024 Budget Act, then the effective date for the increased health care minimum wage will be October 15, 2024.
- The Department of Health Care Services notifies the Joint Legislative Budget Committee that it has initiated the data retrieval necessary to implement an increase to the hospital quality assurance fee revenues beginning January 1, 2025. If this notification occurs, the health care minimum wage would be effective the earlier of January 1, 2025 or 15 days after the notification to the Joint Legislative Budget Committee.
If and when the increased health care minimum wage does go into effect, the increases applicable are as follows:
Type of Healthcare Facility | Health Care Worker Minimum Wage |
---|---|
Large Providers and Integrated Health Systems | $23.00 |
Hospitals | $18.00 |
Clinics | $21.00 |
Licensed Skilled Nursing Facilities
(Effective only when patient care minimum spending requirements applicable to skilled nursing facilities are in effect.) | $21.00 |
Other Healthcare Facilities
(Healthcare facilities that are not covered by one of the above) | $21.00 |
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