SB 525 Implementation and Member Resources  

On October 13, Governor Newsom signed into law Senate Bill (SB) 525. SB 525 establishes a minimum wage for covered health care employees working at or for covered health care facilities, including community health centers (CHCs).

For specified clinics, the minimum wage for covered health care employees will be $21 per hour from June 1, 2024, to May 31, 2026; $22 per hour from June 1, 2026, to May 31, 2027; and $25 from June 1, 2027, adjusted annually thereafter. For covered health care employees whose compensation 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 statewide minimum wage for all industries, whichever is greater. SB 525 also establishes a waiver program that would authorize certain clinics to apply for and receive a temporary pause or alternative phase-in schedule of the health care minimum wage requirements. Finally, the bill includes preemption provisions of local health care minimum wage laws for 10 years and executive compensation for six years, meaning that local ordinances and laws regulating these issues will not be allowed for that time period. 

CPCA is fully engaged in the bill’s implementation from both a resource development and regulatory advocacy standpoint. To provide comprehensive support and resources to CHCs on the new law’s implementation and requirements, CPCA launched an SB 525 resource page. The webpage houses a number of resources, including the bill language, Frequently Asked Questions (FAQ) that explain the bill’s pertinent provisions, and links to office hours and webinars, including an employment law webinar with outside legal counsel. We will continue to update the FAQ and provide additional guidance based on member feedback and as more information becomes available. 

CPCA is also engaging with state regulators and other stakeholders to ensure the bill is implemented in a way that will enable CHCs to transition to the minimum wage requirements while preserving access to patient care and meeting the needs of their communities. In addition to those efforts, we will continue to aggressively advocate for additional resources for CHCs so they can successfully meet the new minimum wage requirements. CPCA staff will continue to provide updates regarding the bill’s implementation process through various communication channels. 

For questions or comments, members can email SB525@cpca.org.