Workers in most health related fields will get $21 healthcare minimum wage starting October 16, 2024
This week At Home Nursing Care informed our staff that the new healthcare minimum wage will be $21 hourly starting on October 16th. As a licensed and accredited home health agency, this new healthcare minimum wage covers anyone working under our home health license. This includes direct care staff and also office workers.
This was a result of SB 525 introduced by the California Legislature and signed by the Governor. It’s led to increased billing rates for in home care across California. The measure was a compromise between the Governor and various hospital groups across the state. It follows a similar state wide minimum wage regarding fast food workers.
The healthcare minimum wage was originally set to increase on July 1, 2024, but was delayed by the Governor due to state budget constraints. The legislature created a new bill that said the healthcare minimum wage would be delayed until certain conditions were met.
Last week, the Director of the California Department of Health Care Services, Michelle Baass, in a letter to California’s Legislature stated that those conditions had been met, and health care providers were notified they must implement the new healthcare minimum wage by October 16, 2024.
This is the new health care minimum wage schedule:
• Effective 10/16/24 to 6/30/26: $21
• Effective 7/1/26 to 6/30/28: $23
• Effective 7/1/28 to 12/31/29: $25
• Effective 1/1/30: adjusted for inflation each year
Entities covered include hospitals, most clinics, doctor’s offices that meet a certain size, skilled nursing facilities, home health agencies, and integrated health systems.
Read more about the new healthcare minimum wage here including frequently asked questions.
Many hospital systems and health care facilities already pay above the new healthcare minimum wage for regular hourly work, but there were lower pay rates for items such as travel or training that will now have to be adjusted.
What’s interesting about this new healthcare minimum wage is that it prevails even over local jurisdictions who increase the minimum wage higher. The state healthcare minimum wage is the one that prevails, regardless of changing local rules. This creates some peace of mind for health care facilities that the rate of pay can be uniform, not just based on the geographic area where the care is taking place.
While home care organizations, licensed under the California Department of Social Services, were not specifically named in the bill and are not technically “covered entities,” those who do not offer competitive wages will have a difficult time attracting employees.
As the cost of in home care continues to increase with wage pressures, families should bear in mind that the cost of hiring directly and not following the rules can be even costlier. Caregivers are never independent contractors, and many are very aware of increased wage rules and enforcement at the state level.
At Home Nursing Care is proud to pay our employees a fair wage, including health benefits and a 401k with a company match. We believe providing better working conditions improves the profession and leads to better care at home. Apply to work with us today!