The new statutes introduced in 2024 significantly impact the minimum wage landscape for healthcare workers in California.SB 525 sets a clear schedule for incremental wage increases, ensuring that healthcare workers’ wages will rise to $25 per hour over the next several years.This phased approach considers the financial capabilities of different types of healthcare facilities, providing a balanced method to elevate workers’ earnings while mitigating the financial burden on employers.
Effective January 1, 2024, California has enacted new statutes that will gradually raise the minimum wage for healthcare workers to $25 per hour over the next several years.The rate of increase varies based on the size and type of healthcare facility.
Large health facilities and clinics will see an increase to $23 per hour in 2024, reaching $25 per hour by 2026.Other health facilities will start at $21 per hour in 2024, reaching $25 per hour by 2027 for community clinics and by 2028 for other facilities.
Facilities with a large percentage of Medicare and Medicaid patients, rural independent hospitals, and small county facilities will start at $18 per hour in 2024, with a 3.5% annual increase through 2033
New Minimum Wage Requirements for Healthcare Workers:- SB 525 mandates a gradual increase in the minimum wage for healthcare workers, reaching $25 per hour over several years, with specific rates based on the type and size of the facility.
Applicability of Wage Orders:- The Industrial Welfare Commission (IWC) issues wage orders that specify minimum requirements for wages, hours, and working conditio.
There are 18 wage orders, with 16 covering specific industries and occupations, and a general minimum wage order that amends all others to conform to the statutory minimum wage.
– Wage Order No. 5-2001 specifically covers hospital workers but excludes employees directly employed by the state or any political subdivision thereof.
Enforcement and Penalties for Non-Compliance:- Employers failing to comply with Labor Code Section 226 can face enforcement actions by the Division of Labor Standards Enforcement or private suits for injunctive relief. Statutory penalties apply when non-compliance is knowing and intentional.
– The Labor and Workforce Development Agency (LWDA) and its constituent departments are authorized to collect civil penalties for specified labor law violations.The Private Attorneys General Act (PAGA) allows aggrieved employees to recover civil penalties previously collectible only by LWDA.
The applicability of existing wage orders, particularly those issued by the IWC, remains relevant.Wage Order No. 5-2001, which covers hospital workers, continues to apply, but it expressly excludes public employers from most wage and hour obligations, including meal and rest break obligations.This exclusion means that while private healthcare facilities must comply with the new minimum wage requirements, public healthcare employers may not be subject to the same obligations under this specific wage order.
Enforcement mechanisms and penalties for non-compliance are robust.Employers who fail to comply with the new minimum wage requirements can face enforcement actions and statutory penalties, particularly if non-compliance is knowing and intentional.The PAGA framework further empowers aggrieved employees to seek civil penalties, ensuring that there are multiple avenues for enforcement and compliance.