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California’s health care worker minimum wage law sets a new standard for industry-specific wage protection. It ensures that essential workers—from nurses to food service employees—receive fair pay while supporting retention in an industry facing staffing shortages.
If you are a California health care worker receiving unfair wages, contact our Orange County wage and hour attorney to discuss your legal options today. Call us at (949) 379-6250.
California enacted Senate Bill 525 to establish the first industry-specific minimum wage law for health care workers. This law, signed in 2023, began phasing in during 2024 and continues through 2028.
Effective July 1, 2025, these employers must pay workers a minimum of $24.00 per hour, up from $23.00. This category covers health care systems with 10,000 or more full-time employees, dialysis clinics, and facilities in counties with populations over five million.
Beginning July 1, 2025, these facilities must implement a 3.5% wage increase, raising the minimum hourly rate from $18.00 to $18.63.
Community clinics, urgent care centers, and other facilities not falling into the above categories will maintain a minimum wage of $21.00 per hour through June 2026.
The law applies broadly to employees who work in health care facilities, regardless of whether they provide direct patient care. Covered positions include:
Covered facilities include hospitals, dialysis clinics, skilled nursing facilities, integrated health systems, county-run facilities, and community clinics.
Senate Bill 525 also raises the salary threshold for exempt employees in covered health care facilities. Exempt staff must receive the greater of:
For example, in a facility with the $24.00 rate, exempt employees must earn at least $74,880 annually.
The law first took effect on October 16, 2024, with initial increases depending on facility type. Rates continue to rise gradually until all categories reach $25.00 per hour between 2026 and 2028. Starting in 2028, annual adjustments will account for inflation.
State and federal law provide employees with remedies that ensure they recover the pay they have rightfully earned. Penalties may include:
Workers can claim the unpaid wages they should have received under SB 525.
In many cases, courts order employers to pay an amount equal to the unpaid wages as an additional penalty.
Employees can recover interest that accrues from the date the wages should have been paid.
Employers may be subject to statutory fines for violating wage laws.
If an employee prevails in a wage claim or lawsuit, the employer may be ordered to pay the worker’s legal expenses.
Employers who demote, wrongfully terminate, or otherwise retaliate against employees for asserting wage rights face separate liability.
If you have faced unfair treatment by your employer, contact us at Aegis Law to discuss your legal options. Schedule your free consultation today.