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Update: California Gives Healthcare Workers A Raise Delayed to July 1, 2024 (Is it?)

04 Jul

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Update Applicable to:Deadline
All covered employers as defined in the bill that have healthcare workers in CaliforniaOctober 15, 2024 to January 1, 2025


What happened?

On May 31, 2024, the California Senate passed Bill 828, which delayed the implementation of the Healthcare Minimum Wage until July. However, on June 22, 2024, it will start no later than October 15, 2024, due to the announcement made of the Budget Deal for 2024 (SB159).


What are the details?

California Senate Bill 828 (CA SB 828) from the 2023-2024 Regular Session is a piece of legislation that

delays the start date of the healthcare minimum wage law by one month to July 1, 2024.

This extension aims to provide the state with extra time to execute the minimum wage schedules amidst the forecasted state budget deficit challenges.

For additional information, please visit our previous updates:

However, due to the budget deal recently struck on June 22 (SB 159), the delay will be, from the soonest date of the implementation October 15, 2024, to the latest date January 1, 2025.

According to CalMatters: “…That’s (October 15 date is) contingent on the state bringing in at least 3% more revenue than the administration expects in the first quarter of the upcoming fiscal year, or the state collecting data to secure federal funding that will help offset some of the costs related to the law. If the money does not come through, the law and the wage increases would take effect on Jan. 1.”


Business Considerations

  • Employers have some extra time to prepare for the raises that the new healthcare minimum wage would entail.
  • Employers should review and update all necessary policies and practices, like the pay stubs, to comply with the new wage rate.


Source References


Resources

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This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.

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