Employers in the healthcare industry in California are subject to a separate minimum wage from other employers.
Effective July 1, 2025, certain healthcare facilities will see an increase in their minimum wage rates. The following is a summary of the increases based on the type of employer.
| Type of Healthcare Employer | Current Rate | Increased Rate |
|---|---|---|
| Hospitals or Integrated Health Systems with 10,000 or more full-time employees, including skilled nursing facilities operated by these employers | $23 | $24 |
| Dialysis Clinics | $23 | $24 |
| Covered Health Care Facilities run by large counties with more than five million people as of January 1, 2023 | $23 | $24 |
| Hospitals with 90% or more of their patients paid for by Medicare or Medi-Cal | $18 | $18.63 |
| Independent Hospitals with 75% or more of their patients paid for by Medicare or Medi-Cal | $18 | $18.63 |
| Rural Independent Covered Health Care Facilities | $18 | $18.63 |
| Covered Health Care Facilities run by small counties with fewer than 250,000 people | $18 | $18.63 |
While several categories of healthcare employees will receive a minimum wage increase in July 2025. The following categories of healthcare employers will not have a minimum wage increase until July 2026:
- Intermittent clinics, community clinics, rural health clinics, or urgent care clinics associated with community or rural health clinics
- Covered Health Care Facilities run by Medium Sized Counties (250,000 to five million people as of 1/1/23)
- Skilled Nursing facilities not owned, operated, or controlled by a hospital, integrated health care delivery system, or health care system
- All other covered health care facilities not listed in the other categories and not run by Counties
Who is Covered?
The definition of "health care employee" is broad, encompassing a wide range of roles within healthcare facilities. This includes employees who provide patient care, health care services, or services supporting the provision of health care. Examples of covered roles include:
- Nurses
- Physicians
- Caregivers
- Medical residents, interns, or fellows
- Patient care technicians
- Janitors
- Housekeeping staff
- Groundskeepers
- Guards
- Clerical workers
- Non-managerial administrative workers
- Food service workers
- Gift shop workers
- Technical and ancillary services workers
- Medical coding and billing personnel
- Schedulers
- Call center and warehouse workers
- Laundry workers.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
