Health Worker Pay Rising in California: $24 / hr in 2025 as Wage Increases Continue

In 2023, California passed SB 525, which established a new minimum wage programme for healthcare workers. The purpose of the law was to enhance working conditions at medical facilities such as clinics, hospitals, and community health centres.

Due to state budgetary revisions, its implementation was delayed until October 16, 2024, even though it was originally scheduled to take effect in June 2024.

How much will workers in the health sector make in 2025?

The minimum wage will change based on the kind of company starting in 2025. The primary levels are as follows:

• From June 1, 2024, large hospitals and nonprofit integrated health systems will pay $23 per hour; this will increase to $24 in 2025 and $25 in 2026.
• Community clinics and rural hospitals: $18 per hour starting in October 2024, with yearly raises to $25 in 2033.
• Less than 10,000-person healthcare facilities: $21 per hour starting in 2024, increasing to $23 in 2026 and $25 in 2028.

In California’s healthcare system, these pay raises are intended to lower employee turnover and enhance service quality.

To whom does this new rule apply?

Numerous healthcare professionals are covered by SB 525, including:

• Laboratory technicians and nurses
• Hospital maintenance and cleaning personnel
• Clinic administrative personnel and receptionists
• Nurses in assisted living facilities

Employees who work in a health centre covered by the statute are entitled to the new minimum wage regardless of whether they were hired directly or through an agency.

How does the health system get affected by this measure?

There are multiple goals behind raising the minimum wage in the health sector:

• Boost employee retention in a field with a high turnover rate.
• lessen the scarcity of qualified personnel in community and rural clinics.
• enhancing the standard of care by providing more equitable working circumstances.

The rule allows for staggered transitions and exceptions, despite the financial impact being a worry for some hospitals.

In 2025, what should employers do?

California healthcare companies are required to:

• Examine your SB 525 categorisation.
• Payroll systems should be updated to meet the new minimums.
• Make sure your staff members are aware of their wage rights.

Staying current is essential because non-compliance can lead to fines and labour lawsuits.

California’s 2025 minimum wage for healthcare workers is a significant step towards labour justice in one of the most vital industries in the state.

SB 525 establishes a precedent for safeguarding labour rights in the healthcare industry, where pay have reached as high as $24 per hour this year.

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