California SB 525 was originally passed over a year ago, but after several delays, it is finally scheduled to take effect on October 16, 2024. This bill would increase the minimum wage for many health care workers in the state. Additionally, home health companies are generally subject to the new law in two cases: when they are involved in subcontracting and when they are part of a hospital system.
More specifically, this means that the franchisee uses a covered health care facility (or a covered health care facility’s contractor or subcontractor) to provide health care services (including “nursing care”) or services in support of the delivery of health care. This means when there is a contract with. Note that the minimum wage should be increased by:
If the contracting party is an insured health care facility employer with 10,000 or more full-time equivalent employees, or is part of an integrated health care delivery system or health system with 10,000 or more full-time equivalent employees. (here is a list of those organizations), or dialysis clinics, the new minimum wage will be $23 per hour. If the contracting party is a “safety net” hospital (list here), the new minimum wage will be $18 per hour, increasing by 3.5% each year starting July 1 of each year. For clinics with listed contracting parties, Labor Code Section 1182.14(c)(3)(A) or other covered health care facilities, the new minimum wage is $21 per hour.
As part of this process, the California Department of Industrial Relations has released FAQs to assist employers in complying with the planned increases.
Additionally, licensed home health agencies are explicitly identified as employers of health care facilities. The law is unclear whether all employees of an agency with a home health license are considered “employees of a health care facility.” However, under the new bill, licensed agencies will have to consider the possibility of this designation even for caregivers. To ensure that appropriate wages are always paid, licensed agencies are encouraged to consult with employment advisors to determine employee designations.
Employers can read more about the Senate bill and how it could impact your company in our previously posted article, “California’s New Health Care Worker Minimum Wage Law and the Home Health Care Industry.” Masu.
