UPDATE: Healthcare Minimum Wage Increase Delayed to July 1

UPDATE: Healthcare Minimum Wage Increase Delayed to July 1

California Senate Bill 525, passed at the end of 2023, mandated minimum wage increases for most healthcare employees, set to begin this Saturday, June 1. The increases are staggering, and there has been discussion of delaying the implementation of these increases until July 1. As reported today by state capitol reporter Eytan Wallace, Senate Bill 828, the bill to enforce that delay, passed the Senate just this morning. Governor Newsom is expected to sign it.

One month is not a significant delay for a bill that eventually increases healthcare minimum wages to $25, as early as 2026 for some organizations. The delay will afford the state time to address the serious budget issues created by these increases, but it’s unclear what, if anything, would be adjusted for private employers.

SB 525 is complex. Healthcare employers are encouraged to consult with employment counsel or seek advice from professional associations for clarity on its application and possible exemptions.