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Senate Bill (SB) 525 was signed into law to phase in statewide minimum wage increases for health care workers employed by covered health care facilities. Beginning on October 16, 2024, health care workers employed by certain health care facilities will start to see their minimum wage gradually increase. The California Department of Industrial Relations developed a FAQ resource which provides further information on the types of covered health care facilities that are subject to the minimum wage requirements and when it becomes effective.
CAMFT will update this resource as more information becomes available and/or clean-up language is made to the law.
Disclaimer: The law as currently written remains vague and unclear as it pertains to which individuals and health care facilities are impacted. We recognize that licensed and pre-licensed MFTs in California work in a wide range of health care settings that include private practices, agencies and clinics, schools, hospitals, and more. This resource does not add interpretation beyond what is defined in statute and is not meant to be a resource that lists every job title or work setting to which this law applies. CAMFT members are encouraged to use this resource to obtain a general understanding of which health care facilities are covered and to determine if it may impact you. If you have questions about how this law may impact you or your business, we strongly recommend seeking legal consultation with an employment/labor law attorney. You may also email the Department of Industrial Relation’s general question inbox at [email protected] for more information and clarification on how the law may impact you.
Who is Covered in the Health Care Minimum Wage Law?
The minimum wage law applies to employees of a health care facility employer (see list below) who provide patient care, health care services, or services supporting the provision of health care (Labor Code Section 1182.14(b)(2)(A)). This is generally inclusive of health care workers and other individuals supporting the provision of health care. Contracted (1099s) or subcontracted employees are also covered if the health care facility employer controls the wages, hours, or working conditions of the contracted employee or if the contracted employee works primarily at the health care facility (Labor Code Section 1182.14(b)(2)(B)).
What does it mean to be an Employee of a Health Care Facility Employer?
The law does not provide a strict definition on what an “employee” means. To put it vaguely, an employee is a person who is allowed to work for an employer (Labor Code Sections 1182.14(b)(4)-(6)). Typically, “employees” are individuals who contract (1099) with or have a W2 tax classification with an employer. According to communications by the Senate, volunteers are not included in this law since they don’t meet the definition of an employee.[i]
What Health Care Facilities are Covered in the Health Care Minimum Wage?
Health care workers who are employed at, or meet the situations to be a contracted or subcontracted employee, with the below covered health care facilities are covered by the health care minimum wage law:
The law does not include the following as a covered health care facility:
These notable health care facilities and working settings are not explicitly covered in the health care minimum wage:
[i] NOTE: Employers who also use volunteers should always make sure they have classified providers correctly to ensure they are not violating California Labor Law. To learn more, please read CAMFT’s legal article Labor Commission Reviews Unpaid AMFT Internships.