SB 525 (Durazo, D-Los Angeles)

SB 525 was amended on Sept. 11 and would roll out a $25 minimum wage for health care workers pursuant to these parameters:

• Organizations with 10,000 full-time equivalent (FTE) workers or more would pay a minimum wage of $23 in June 2024, $24 in June 2025, and $25 in June 2026. Minimum wage after 2026 would be indexed to the lower of inflation or 3.5%.
• Organizations that would qualify for the longest step up in wages include: 1) the 31 hospitals in the state that are not part of a health system and are rural; 2) the 39 hospitals in the state that are not part of a health system and have a government payer mix of 75% or more, where government payer mix is determined by the share of utilization attributed to Medi-Cal and Medicare; and 3) the seven hospitals in the state that are part of a health system where both the hospital and the health system have a government payer mix of 90% or more, where government payer mix is determined by the share of utilization attributed to Medi-Cal and Medicare. Starting in June 2024, these hospitals would have to pay workers $18 an hour. The minimum wage after 2024 would be increased by 3.5% annually until it reaches $25 in June 2033; it would be indexed thereafter to the lower of inflation or 3.5%.
• For hospitals that do not fall into one of the other two categories, they would pay workers $21 in June 2024, $23 in June 2026, and $25 in June 2028. The minimum wage after 2028 would be indexed to the lower of inflation or 3.5%.

In addition, local governments would be prohibited from enacting local laws relating to wages or compensation for health care facility employees.