CSAC Bulletin Article

DHCS Notification to Trigger Implementation of SB 525 Health Care Minimum Wage Increases

October 3, 2024

On October 1, 2024, the Department of Health Care Services (DHCS) submitted a letter to the Joint Legislative Budget Committee (JLBC) as notice that DHCS had initiated the data retrieval necessary to implement an increase to the Hospital Quality Assurance Fee effective January 1, 2025, which would fund increases to supplemental Medi-Cal program payments to hospitals that could support hospitals in complying with, and partially mitigate the Medi-Cal program costs of, health care minimum wage increases.

Pursuant to Labor Code section 1182.16(b), this action triggers implementation of specified minimum wage increases for the health care workforce required by SB 525 (Chapter 890, Statutes of 2023), the earlier of January 1, 2025, or 15 days after the notification to the JLBC.

As a result, the minimum wage increases specified in Labor Code section 1182.16 will be effective on October 16, 2024. Pursuant to Labor Code section 1182.14(c)(5), minimum wage increases for health care facilities owned, affiliated, or operated by counties are scheduled to begin January 1, 2025.

The Department of Industrial Relations has posted frequently asked questions about the minimum wage increases, including links to other resources.

 

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