With an anticipated increase in workers no longer subject to exemption from overtime pay under a new U.S. Department of Labor rule that is scheduled to take effect on July 1, 2024 (learn more here), employers will need to sharpen their pencils and make adjustments. What’s more, on that date, many states and localities will see a hike in minimum wage requirements.
Most of these jurisdictions will have straightforward rate adjustments, with a uniform increase across all industries. However, a somewhat more complicated and significant development comes out of California, which has raised minimum wage mandates for just one sector.
An amended version of SB 525 was passed in the California Legislature on September 14, 2023, [1] which would raise minimum wages for health care workers across the state, starting June 1, 2024. SB 525 is now awaiting signature or veto from California Governor Gavin Newsom, who has until October 14, 2023 to sign or veto this bill.
CHANGES IN MINIMUM WAGES:
SB 525 sets forth different tiers of minimum wage increases that vary based on the following:
- Large health systems and dialysis clinics:[2]
- Minimum wage for covered health care employees shall be:
- From June 1, 2024, to May 31, 2025 ...
- Minimum wage for covered health care employees shall be:
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