California Healthcare Minimum Wage Lawsuit Investigation: Are Healthcare Workers Getting the Proper Minimum Wage?

New legislation that took effect in October 2024 is increasing the minimum wage over a period of years to $25 per hour for certain healthcare workers in California. Attorneys working with ClassAction.org are now looking into whether California healthcare employers are complying with the new minimum wage law—and if not, whether class action lawsuits can be filed on behalf of affected workers.

The California healthcare minimum wage law impacts employees involved in patient care—such as medical assistants, certified nursing assistants, phlebotomists and caregivers—as well as those whose duties support the provision of healthcare, including technical and clerical services, janitorial work, housekeeping, food service, medical coding and billing, call center and warehouse work and more.

The new law establishes schedules for minimum wage increases across different types of covered healthcare employers. Under the California healthcare minimum wage law, qualifying workers’ rates—which began as low as $18 per hour in 2024—are scheduled to rise incrementally to $25 per hour over the course of several years.

What’s the New California Healthcare Worker Minimum Wage Law?

According to California’s Department of Industrial Relations (DIR), new legislation has been added to the state’s labor code that increases the minimum wage for workers of qualifying healthcare employers. For most covered healthcare facilities, the new law went into effect on October 16, 2024. For facilities run by counties, the California healthcare minimum wage increase did not take effect until January 1, 2025.

Employees qualify for the higher minimum wage if they work for a type of healthcare facility that is covered by the new law and if their job involves providing healthcare services or supporting the provision of healthcare.

Examples of covered healthcare facilities may include but are not limited to the following:

• Hospitals and hospital systems (such as general acute care hospitals, acute psychiatric hospitals and psychiatric health facilities providing 24-hour inpatient care)
• Residential care facilities (such as skilled nursing facilities owned or operated by hospitals, licensed home healthcare agencies and certain residential care facilities for the elderly)
• Outpatient clinics (such as dialysis clinics, urgent care clinics, psychology clinics, alternative birth centers, surgical centers and certain rehabilitation clinics)
• Physician’s groups
• Mental health rehabilitation centers
• County mental health facilities and correctional facilities that provide healthcare services
• Clinics that provide primary care; hospital clinics; teaching clinics and clinics operated by the University of California system or by a city, county or other political subdivision of the state

Only employees working for covered facilities such as the ones listed above are entitled to the California healthcare minimum wage increase.

Who Does NOT Qualify for the California Healthcare Minimum Wage Increase?

At this time, employees providing services at the following types of facilities are not covered by the new California healthcare minimum wage law:

• Skilled nursing facilities that are not owned or operated by hospitals;
• Congregate living health facilities;
• Independent practice associations;
• Outpatient private practice physical therapy clinics that provide only physical therapy and are not owned or operated by a covered healthcare facility; and
• Any healthcare facility owned or operated by the State of California.

Is the New California Healthcare Minimum Wage $25 Per Hour?

Not yet. Minimum wage rates are indeed scheduled to reach $25 per hour, but how long it will take to get there depends on your employer.

California’s Department of Industrial Relations (DIR) explains that healthcare minimum wage increases vary by type of facility, with rates beginning between $18 and $23 per hour scheduled to reach $25 per hour over time, before being adjusted for inflation in the years that follow.

According to the DIR, wage increase schedules began as early as 2024 in many cases, and most covered facilities are set to reach $25 per hour by 2027, 2028 or 2029. However, some healthcare facilities—including safety net hospitals and those run by small counties—are not scheduled to reach this point until 2034.

As an example, the DIR states that the minimum wage increase schedule for a hospital or integrated health system with at least 10,000 full-time employees is as follows:

• From October 16, 2024 to June 30, 2025: $23 per hour
• From July 1, 2025 to June 30, 2026: $24 per hour
• From July 1, 2026 to December 31, 2027: $25 per hour
• Rate to be adjusted for inflation each year beginning January 1, 2028

Per the DIR, employers covered by the new law must notify workers of the California healthcare minimum wage increase schedule that applies to them.

What Types of Jobs Qualify for the California Healthcare Minimum Wage Increase?

To receive the higher minimum wage, workers of covered employers must have a job that provides healthcare services or supports the provision of healthcare.

This refers to patient care such as nursing and caregiving or services provided by medical residents, interns or fellows. It also means supportive services, including office clerical work, scheduling, housekeeping, groundskeeping, food service, medical coding and billing, technical services, janitorial work, call center or warehouse duties, laundry services, guard duties and more.

For example, the California healthcare worker minimum wage law may cover the following job titles, without limitation:

• Medical assistant
• Certified nursing assistant
• Phlebotomist
• Pharmacy technician
• Surgical technician
• Lab assistant
• Housekeeping or environmental services associate
• Cook or food service associate
• Medical office assistant
• Patient liaison, patient services associate or patient care coordinator
• Admit worker
• Nutrition assistant or dietary aide
• Distribution technician

I Think I Qualify for the New California Healthcare Minimum Wage. What Can I Do?

If you’re a worker at a facility covered by the California healthcare minimum wage law and believe your employer is not complying with the new legislation, you may be able to help get a class action lawsuit started.

If filed and successful, California healthcare worker minimum wage lawsuits could potentially force employers to change their pay practices and ensure they are in line with state law. Successful lawsuits may also help affected healthcare workers in California recover any unpaid wages.

After you get in touch, an attorney or legal representative may contact you to ask some questions and explain how you could possibly help get a lawsuit started. It doesn’t cost anything to complete the form or speak with someone, and you’re not obligated to take legal action if you don’t want to.

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