Section 1182.15 - Minimum wage for covered health care employees; employers with 10,000 or more employees(a) The Legislature finds and declares as follows: (1) Workers in the health care industry, including workers at general acute care hospitals, acute psychiatric hospitals, medical offices and clinics, behavioral health centers, and residential care centers provide vital health care services to California residents, including emergency care, labor and delivery, cancer treatments, and primary and specialty care. Similarly, dialysis clinics provide life-preserving care to patients with end-stage renal disease and are part of the continuum of kidney care that also includes hospitals and health systems. Residents and visitors to the state rely on access to this high-quality health care.(2) Higher wages are an important means of retaining an experienced workforce and attracting new workers. A stable workforce benefits patients and improves quality of care.(3) Employers across multiple industries are raising wages. The health care sector in California must offer higher wages to remain competitive.(4) Members of the health care team such as certified nursing assistants, patient aides, technicians, and food service workers, among many others, are essential to both routine medical care and emergency response efforts.(5) Even before the COVID-19 pandemic, California was facing an urgent and immediate shortage of health care workers, adversely impacting the health and well-being of Californians, especially economically disadvantaged Californians. The pandemic has worsened these shortages. Higher wages are needed to attract and retain health care workers to treat patients, including being prepared to provide necessary care in an emergency.(6) The Legislature finds and declares that laws that establish, require, impose, limit or otherwise relate to wages, salary, or compensation affect access to quality health care for all residents of, and visitors to, the state provided by licensed health care facilities, which serve as a critical part of the state's ability to respond to catastrophic emergencies. The Legislature also finds and declares that the time limitations and other provisions established by this section are necessary to stabilize the health care system following the state and federal public health emergencies related to COVID-19, the closure and bankruptcy of licensed health care facilities, and the reduction in vital services by licensed health care facilities due to financial distress and the health care workforce crisis that has resulted in staffing shortages and strain for health care workers. The Legislature further finds and declares that access to quality health care and the stability of the health care system is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this section occupies the whole field of wages, salary, or compensation for covered health care facility employees, and applies to all cities and counties, including charter cities, charter counties, and charter cities and counties during the stabilization period provided by this section.(7) The Legislature finds and declares that it is the intent of the Legislature that subclause (I) of clause (ii) of subparagraph (B) of paragraph (2) of subdivision (b) of this section is declarative of existing law.(b) As used in this section:(1)(A) "Covered health care employee" means any of the following: (i) An employee of a health care facility employer who provides patient care, health care services, or services supporting the provision of health care, which includes, but is not limited to, employees performing work in the occupation of a nurse, physician, caregiver, medical resident, intern or fellow, patient care technician, janitor, housekeeping staff person, groundskeeper, guard, clerical worker, nonmanagerial administrative worker, food service worker, gift shop worker, technical and ancillary services worker, medical coding and medical billing personnel, scheduler, call center and warehouse worker, and laundry worker, regardless of formal job title.(ii) A contracted or subcontracted employee described in subparagraph (B).(B) "Covered health care employee" includes a contracted or subcontracted employee, if clauses (i) and (ii) apply:(i) The employee's employer contracts with the covered health care facility employer, or with a contractor or subcontractor to the covered health care facility employer, to provide health care services, or services supporting the provision of health care.(ii)(I) Consistent with the definitions of "employ" and "employer" in the Industrial Welfare Commission wage orders, the covered health care facility employer directly or indirectly, or through an agent or any other person, engages, suffers, or permits an employee to work, or exercises control over the employee's wages, hours or working conditions, or(II) The employee performs contracted or subcontracted work primarily on the premises of a covered health care facility. For purposes of this subparagraph, "primarily" means more than one-half of the employee's work time during a workweek.(iii) A contracted or subcontracted employee shall be paid the applicable minimum wage in this section for all hours worked providing patient care, health care services, or services supporting the provision of health care.(C) Notwithstanding subparagraph (A), "covered health care employee" does not include:(i) Employment as an outside salesperson.(ii) Any work performed by a public employee where the public employee is not primarily engaged in services described in clause (i) of subparagraph (A) performed for a covered health care facility. For purposes of this subparagraph, "primarily" means more than one-half of the employee's work time during a workweek.(iii) Delivery or waste collection work on the premises of a covered health care facility, provided that the delivery or waste collection worker is not an employee of any person that owns, controls, or operates a covered health care facility.(iv) Medical transportation services in or out of a covered health care facility, provided that the medical transportation services worker is not an employee of any person that owns, controls, or operates a covered health care facility.(2)(A) "Covered health care facility" means a licensed skilled nursing facility, as defined in subdivision (c) of Section 1250 of the Health and Safety Code, that is not covered by Section 1182.14.(B) "Covered health care facility" does not include either of the following: (i) A health care facility, as described in subparagraph (A), that is owned, controlled, or operated by the state or any state agency of the executive branch. As used in this subparagraph, "state agency" includes every state office, officer, department, division, bureau, board, and commission under the executive branch, including any constitutional offices or officers, California State University, or California Community College, but does not include a health care district or the University of California.(ii) A tribal clinic exempt from licensure under subdivision (c) of Section 1206 of the Health and Safety Code, or an outpatient setting conducted, maintained, or operated by a federally recognized Indian tribe, tribal organization, or urban Indian organization, as defined in Section 1603 of Title 25 of the United States Code.(3) "Employ" means to engage, suffer, or permit to work.(4) "Employee" means any person employed by an employer.(5) "Employer" means a person who directly or indirectly, or through an agent or any other person, employs or exercises control over the wages, hours, or working conditions of any person.(6) "Health care services" means patient care-related services including nursing; caregiving; services provided by medical residents, interns, or fellows; technical and ancillary services; janitorial work; housekeeping; groundskeeping; guard duties; business office clerical work; food services; laundry; medical coding and billing; call center and warehouse work; scheduling; and gift shop work; but only where such services support patient care.(7) "Health care worker minimum wage" means the minimum wage rate established by this section.(c) For any covered health care facility employer covered by this section, the minimum wage for all covered health care employees shall be as follows: (1) From July 1, 2024, to June 30, 2026, inclusive, twenty-one dollars ($21) per hour.(2) From July 1, 2026, to June 30, 2028, inclusive, twenty-three dollars ($23) per hour.(3) From July 1, 2028, and until adjusted pursuant to subdivision (d), twenty-five dollars ($25) per hour.(d)(1) Following the implementation of the minimum wage increase specified in subdivision (c), on or before August 1 of the following year, and on or before each August 1 thereafter, the Director of Finance shall calculate an adjusted minimum wage. The calculation shall increase the health care worker minimum wage by the lesser of 3.5 percent or the rate of change in the averages of the most recent July 1 to June 30, inclusive, period over the preceding July 1 to June 30, inclusive, period for the United States Bureau of Labor Statistics nonseasonally adjusted United States Consumer Price Index for Urban Wage Earners and Clerical Workers (U.S. CPI-W). The result shall be rounded to the nearest ten cents ($0.10). Each adjusted health care worker minimum wage increase calculated under this subdivision shall take effect on the following January 1.(2) If the rate of change in the averages of the most recent July 1 to June 30, inclusive, period over the preceding July 1 to June 30, inclusive, period for the United States Bureau of Labor Statistics nonseasonally adjusted U.S. CPI-W is negative, there shall be no increase or decrease in the health care worker minimum wage pursuant to this subdivision on the following January 1.(e) The health care worker minimum wages shall constitute the state minimum wages for covered health care employment for all purposes under this code and the wage orders of the Industrial Welfare Commission.(f)(1) A health care worker minimum wage shall be enforceable by the Labor Commissioner in accordance with the procedures set forth in Section 98, 98.1, 98.2, 98.3, 98.7, 98.74, or 1197.1, or by a covered worker through a civil action, through the same means and with the same relief available for violation of any other state minimum wage requirement.(2)(A) The Department of Industrial Relations shall amend, supplement, and republish the Industrial Welfare Commission's wage orders to be consistent with this section. The Department of Industrial Relations shall make no other changes to the wage orders of the Industrial Welfare Commission that are in existence on the effective date of this section. The Department of Industrial Relations shall meet the requirements set forth in Section 1183.(B) Every employer that is subject to this section shall comply with all of the following:(i) Post a copy of the order as amended, supplemented and republished by the Department of Industrial Relations under this section and keep it posted in a conspicuous location frequented by employees during the hours of the workday, as required by Section 1183.(ii) Provide to each employee on the effective date of the earliest minimum wage increase pursuant to subdivision (c), a written notice, in the language the employer normally uses to communicate employment-related information to the employee, indicating the paragraph of subdivision (c) that applies to the employer and the health care worker minimum wage schedule applicable to the employee.(C) Any amendment, supplement, and republication pursuant to this section shall be exempt from the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), and from the procedures set forth in Sections 1177, 1178.5, 1181, 1182, and 1182.1.(g) For covered health care employment where the compensation of the employee is on a salary basis, the employee shall earn a monthly salary equivalent to no less than 150 percent of the health care worker minimum wage or 200 percent of the minimum wage, as described in Section 1182.12, whichever is greater, for full-time employment in order to qualify as exempt from the payment of minimum wage and overtime under the law of this state, including where the employer is a political subdivision of the state, a health care district, the University of California, or a municipality.(h)(1) An ordinance, regulation, or administrative action applicable to a covered health care facility, as defined in this section, that establishes, requires, imposes, limits, or otherwise relates to wages or compensation for covered health care facility employees, as defined in this section, shall not be enacted or enforced in or by any city, county, city and county, including charter cities, charter counties, and charter cities and counties.(2) Any ordinance, regulation, or administrative action taken by any city, county, or city and county, including charter cities, charter counties, and charter cities and counties, that is enacted or takes effect after September 6, 2023, related to covered health facilities, that establishes, requires, imposes, limits, or otherwise relates to wages, salaries, or compensation for covered health care facility employees, as defined in this section, is void.(3) This subdivision does not preclude any employer, including a city, county, city and county, including charter cities, charter counties, and charter cities and counties, that employs health care employees, from establishing higher wage, salary, or compensation rates for its employees or contracted or subcontracted employees.(4) This subdivision does not preclude a city, county, city and county, including charter cities, charter counties, and charter cities and counties from establishing a minimum wage that would apply uniformly to all employees across all industries and sectors and not exclusively to employees employed by covered health care facilities.(5) This subdivision does not preclude a city, county, city and county, including charter cities, charter counties, and charter cities and counties, from establishing or enforcing a minimum wage applicable to covered health care facility employees, as defined in this section, after January 1, 2034. Any such ordinance, regulation, or administrative action shall be evaluated under ordinary preemption principles.(6) This subdivision does not preclude a city, county, city and county, including charter cities, charter counties, and charter cities and counties, from enacting an ordinance or regulation, or taking administrative action, limiting or otherwise relating to compensation for covered health care facility employees, as defined in this section, after January 1, 2030. Any such ordinance, regulation, or administrative action shall be evaluated under ordinary preemption principles.(7) This subdivision shall take effect only if subdivision (c) takes effect.(i) This section shall only take effect when a patient care minimum spending requirement applicable to skilled nursing facilities, as covered in this section, is in effect.Amended by Stats 2024 ch 40 (SB 159),s 28, eff. 6/29/2024.Amended by Stats 2024 ch 12 (SB 828),s 2, eff. 5/31/2024.Added by Stats 2023 ch 890 (SB 525),s 2, eff. 1/1/2024.