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Midyear Reminder of New California Minimum Wage Laws 2025 – Part 2

Posted July 2025 by S. Ward Heinrichs

Midyear Reminder of New California Minimum Wage Laws 2025 – Part 2

Health Care Workers Minimum Wage: California Labor Code sections 1182.14-1182.16 contain the new Health Care Workers minimum wage law.  The law became effective on October 16, 2024.

The legislation is complex and fills 9 pages in the Labor Code.  Most laws only cover a fraction of that many pages.  Additionally, it has complex definitions for health care providers.  The graduated tables that show the increases from initial base minimum wage rates to $25 per hour are complex, too.  If you are not familiar with the health care industry, you will probably feel overwhelmed with those complexities.

Because it is a complex piece of legislation, the author will try to distill the information in a meaningful way.  However, such distilled summaries will undoubtedly lead to inaccuracies, so do not rely on the below summaries.  Either read the above-cited Labor Code provisions, review the California Department of Industrial Relations frequently asked questions, or ask an attorney to help you understand how the new health care minimum wage law might apply to you.

Depending on the type of health care facility for which a health care worker provides services, the minimum wage increases from various base rates to $25 per hour.  The number of years it takes to reach $25 per hour varies, too, depending on the type of provider the workers work for.  The two types of facilities that will pay $25 per hour the most quickly are hospitals or integrated health systems that employ at least 10,000 people, and dialysis clinics.  They must pay $25 an hour by December 31, 2027.

Covered health care facilities are providers of patient care, health care services, or services that support the direct providers of patient care or health services.  Both employees of health care facilities and employees of health care facility contractors, who provide patient care or support services, can be covered under the health care minimum wage.

Typical health care facilities are hospitals-including psychiatric hospitals, hospital systems, residential care facilities, licensed home health care agencies, physician groups of 25 or more, county mental health facilities, county correctional facilities that provide health care, mental health rehabilitation centers, some outpatient clinics, and certain other clinics, including clinics that provide outpatient care and clinics that provide specific critical services.  Most of the above facilities have different factors to meet before they qualify as providers who must pay the minimum wage for health care employees.  Again, to understand the specifics, a perusal of the law is important.

The San Diego Hospitality Minimum Wage: On June 25, 2025, a San Diego City Council committee passed a proposal to increase the minimum wage for hospitality workers to $25 per hour.  The full City Council will most likely vote on that proposal in September of this year.  If passed, it is slated to become law on January 1, 2026.  Employers say that it will drive away business and cost jobs.  Council members who support the measure say that hospitality workers cannot afford to live in San Diego unless they make at least that amount.

Employment Law Office of Ward Heinrichs
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858-292-0792
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Employment Law Office of WARD HEINRICHS

4565 Ruffner St. Suite 207 San Diego 92111

858-292-0792

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