As an update to our previous post, California’s healthcare minimum wage increase took effect on October 16, 2024—postponed from its original start date of June 1, 2024. The delay was contingent on the state achieving a revenue increase of at least three percent from July 1, 2024, through September 30, 2024.
The updated minimum wage rates for healthcare workers vary by facility type as follows:
- Large hospitals and facilities: $23/hour
- Smaller hospitals and rural facilities: $18/hour
- Clinics and other healthcare facilities: $21/hour
Once the wage reaches $25/hour, it will continue to increase annually based on inflation or 3.5 percent, whichever is lower.
Healthcare employees paid on a salary basis must receive a monthly salary that is no less than 150 percent of the healthcare worker’s minimum wage or the standard 200 percent of the minimum wage, whichever is greater.
Next Steps
Healthcare employers should review the new regulations, update payroll systems accordingly, and communicate these changes to employees.
