As we beforehand reported right here, practically all well being care amenities in California will quickly be required to extend the minimal wage paid to well being care staff, ranging anyplace from $18 per hour as much as $23 per hour relying on the kind of well being care facility. The elevated well being care minimal wage was set to enter impact on June 1, 2024; nevertheless, on Might 31, 2024, Governor Newsom signed SB 828, which supplied for a one month delay, to July 1, 2024. Now, there’s a additional delay after Governor Newsom and state legislators got here to an settlement to delay implementation of the elevated well being care minimal wage till October 15, 2024 (presumably till January 1, 2025) upon passage of AB 159.
On June 29, 2024, Governor Newsom signed AB 159, which signifies the elevated well being care minimal wage would go into impact on October 15, 2024, contingent on the state bringing in no less than 3% extra income from July 1, 2024 by way of September 30, 2024 than the Newsom administration anticipated on the time of the enactment of the 2024 Funds Act. If the state doesn’t attain that benchmark, the wage will increase will take impact the earlier of January 1, 2025 or 15 days after the Division of Well being Care Providers has notified the Legislature that it initiated the information retrieval essential to implement a rise to hospital high quality assurance charge revenues for this system interval starting on January 1, 2025 (the “notification date”). The California Division of Labor Requirements Enforcement lately launched FAQs, which give additional info, together with which well being care employers and staff could also be affected by the well being care minimal wage improve.
Pursuant to AB 159, every wage improve will happen as follows:
- Well being care amenities that make use of 10,000 or extra full-time staff: Lined well being care staff should be paid no less than $23/hour starting on October 15, 2024, or the earlier of January 1, 2025 or 15 days after the notification date (relying on what transpires with income and funding as famous above). Thereafter, the minimal wage will improve by $1/hour on July 1 annually, finally reaching $25/hour on July 1, 2026. Beginning January 1, 2028, the minimal wage will improve yearly (on January 1) on the lesser of three.5% or the Shopper Worth Index.
- Hospitals with a excessive or elevated governmental payor combine, and rural impartial well being care amenities: Starting on October 15, 2024, or the earlier of January 1, 2025 or 15 days after the notification date (once more, relying on what happens with income and funding), lined well being care staff should be paid no less than $18/hour. Thereafter, the minimal wage will increase on July 1 annually by 3.5%, reaching $25/hour on July 1, 2033. Beginning January 1, 2035, the minimal wage will improve yearly (on January 1) on the lesser of three.5% or the Shopper Worth Index.
- Clinics: Starting on October 15, 2024, or the earlier of January 1, 2025 or 15 days after the notification date (relying on what happens with income and funding), and persevering with to June 30, 2026, lined well being care staff should be paid no less than $21/hour. Between July 1, 2026 and June 30, 2027, these staff should be paid no less than $22/hour. And beginning on July 1, 2027, these staff shall be paid no less than $25/hour. Beginning January 1, 2029, the minimal wage will improve yearly (on January 1) on the lesser of three.5% or the Shopper Worth Index.
- Different well being care amenities: Starting on October 15, 2024, or the earlier of January 1, 2025 or 15 days after the notification date (once more, relying on the income and funding contingencies famous above), and persevering with to June 30, 2026, lined well being care staff should be paid no less than $21/hour. Between July 1, 2026 and June 30, 2028, these staff should be paid no less than $23/hour. And beginning on July 1, 2028, these staff shall be paid no less than $25/hour. Beginning January 1, 2030, the minimal wage will improve yearly (on January 1) on the lesser of three.5% or the Shopper Worth Index.
Takeaways
Whereas there’s a delay within the efficient date of the elevated well being care minimal wage till no less than October 15, 2024, this could not deter well being care employers from analyzing now whether or not they’re appropriately classifying themselves and their staff to find out which class of minimal wage improve will apply to them. Well being care employers ought to overview the FAQs and seek the advice of with their authorized counsel to make sure they’re ready for these adjustments within the coming months.