| Update Applicable to: | Deadline |
| All covered employers as defined in the bill that have healthcare workers in California | October 15, 2024 to January 1, 2025 |
What happened?
On May 31, 2024, the California Senate passed Bill 828, which delayed the implementation of the Healthcare Minimum Wage until July. However, on June 22, 2024, it will start no later than October 15, 2024, due to the announcement made of the Budget Deal for 2024 (SB159).
What are the details?
California Senate Bill 828 (CA SB 828) from the 2023-2024 Regular Session is a piece of legislation that delays the start date of the healthcare minimum wage law by one month to July 1, 2024.
This extension aims to provide the state with extra time to execute the minimum wage schedules amidst the forecasted state budget deficit challenges.
For additional information, please visit our previous updates:
- California Gives Healthcare Workers A Raise (VensureHR)
- California Gives Healthcare Workers A Raise (VensureHR)
However, due to the budget deal recently struck on June 22 (SB 159), the delay will be, from the soonest date of the implementation October 15, 2024, to the latest date January 1, 2025.
According to CalMatters: “…That’s (October 15 date is) contingent on the state bringing in at least 3% more revenue than the administration expects in the first quarter of the upcoming fiscal year, or the state collecting data to secure federal funding that will help offset some of the costs related to the law. If the money does not come through, the law and the wage increases would take effect on Jan. 1.”
Business Considerations
- Employers have some extra time to prepare for the raises that the new healthcare minimum wage would entail.
- Employers should review and update all necessary policies and practices, like the pay stubs, to comply with the new wage rate.
Source References
Resources
- Update: California’s new health care minimum wage is changing. Here are answers to your questions (CalMatters)
- Governor Signs Budget Bill Putting Health Care Minimum Wage on Pause (Jackson Lewis P.C.)
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