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Reminder: California Healthcare Minimum Wage Increase Effective July 1, 2025
Tuesday, June 24, 2025

Employers in the healthcare industry in California are subject to a separate minimum wage from other employers.

Effective July 1, 2025, certain healthcare facilities will see an increase in their minimum wage rates. The following is a summary of the increases based on the type of employer.

Type of Healthcare Employer Current Rate Increased Rate
Hospitals or Integrated Health Systems with 10,000 or more full-time employees, including skilled nursing facilities operated by these employers $23 $24
Dialysis Clinics $23 $24
Covered Health Care Facilities run by large counties with more than five million people as of January 1, 2023 $23 $24
Hospitals with 90% or more of their patients paid for by Medicare or Medi-Cal $18 $18.63
Independent Hospitals with 75% or more of their patients paid for by Medicare or Medi-Cal $18 $18.63
Rural Independent Covered Health Care Facilities $18 $18.63
Covered Health Care Facilities run by small counties with fewer than 250,000 people $18 $18.63

While several categories of healthcare employees will receive a minimum wage increase in July 2025. The following categories of healthcare employers will not have a minimum wage increase until July 2026:

  • Intermittent clinics, community clinics, rural health clinics, or urgent care clinics associated with community or rural health clinics
  • Covered Health Care Facilities run by Medium Sized Counties (250,000 to five million people as of 1/1/23)
  • Skilled Nursing facilities not owned, operated, or controlled by a hospital, integrated health care delivery system, or health care system
  • All other covered health care facilities not listed in the other categories and not run by Counties

Who is Covered?

The definition of “health care employee” is broad, encompassing a wide range of roles within healthcare facilities. This includes employees who provide patient care, health care services, or services supporting the provision of health care. Examples of covered roles include:

  • Nurses
  • Physicians
  • Caregivers
  • Medical residents, interns, or fellows
  • Patient care technicians
  • Janitors
  • Housekeeping staff
  • Groundskeepers
  • Guards
  • Clerical workers
  • Non-managerial administrative workers
  • Food service workers
  • Gift shop workers
  • Technical and ancillary services workers
  • Medical coding and billing personnel
  • Schedulers
  • Call center and warehouse workers
  • Laundry workers.
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