Health Care Minimum Wage Increases Delayed Until At Least October 2024

Topics: Legal Information, Wage & Hour Issues

On June 29, 2024, Governor Gavin Newson signed Senate Bill (SB) 159, which includes revisions to California’s health care worker minimum wage, delaying the implementation of minimum wage increases to health care workers until at least October 15, 2024. The amendments take effect immediately.

SB 159 adds California Labor Code Section 1182.16, which effectively delays the minimum wage increases until either of the two following events occur:

• The Director of Finance notifies the Joint Legislative Budget Committee on or before October 15, 2024, that the Department of Finance has determined “that agency cash receipts for the period from July 1, 2024, through September 30, 2024, are at least 3 percent higher than the agency cash receipts projected at the time the 2024 Budget Act was enacted for the July 1, 2024, through September 30, 2024 period.” Upon such notification, the minimum wage increase to health care workers would take effect on October 15, 2024.

or

• The “Department of Health Care Services notifies the Joint Legislative Budget Committee that it has initiated that data retrieval…necessary to implement an increase to hospital quality assurance fee revenues for the program beginning January 1, 2025.” Upon such notification, the minimum wage increase would be effective the earlier of January 1, 2025, or 15 days after the notification to the Joint Legislative Budget Committee.

CDF will continue to keep track of SB 159. If you have questions about the changes made by SB 159 or the health care minimum wage increases, contact a CDF Labor Law attorney to discuss.