California has enacted Senate Bill 525 (SB 525) which establishes a tiered minimum wage rate system for healthcare workers.
The Details:
The scope of SB 525 is extensive and includes nearly all healthcare facilities operating in California including hospitals, licensed skilled nursing facilities, licensed home health agency, and all types of clinics (e.g.; medical, psychology, urgent care).
However, SB 525 does not cover hospitals owned, controlled, or operated by the Department of State or tribal clinics exempt from licensure, or an outpatient setting conducted, maintained or operated by a federally recognized Indian tribe, tribal organization or urban Indian organization.
The workers covered under SB 525 include employees performing work in the occupation of a 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 medical billing personnel, scheduler, call center and warehouse worker, and laundry worker, regardless of formal job title.
Note: SB 525 includes certain carve-outs and does not apply to:
· Employment as an outside salesperson;
· Any work performed in the public sector where the primary duties performed are not healthcare services;
· Delivery or waste collection work on the premises of a covered healthcare facility, provided that the delivery or waste collection worker is not an employee of any person that owns, controls or operates a covered healthcare facility; or
· Medical transportation services in or out of a covered healthcare facility, provided that the medical transportation services worker is not an employee of any person that owns, controls or operates a covered healthcare facility.
Changes to Minimum Wage
The changes to the minimum wage per hour under SB 525 begin on June 1, 2024, and are dependent on the different categories of healthcare facilities:
Next Steps: Healthcare facility employers in California should review Senate Bill 525 with legal counsel to determine what category their organization falls under and pay employees as required.
Have Questions?
Please contact your dedicated service professional with any questions.