Data Resources

Senate Bill 525 – Clinic Minimum Wage Waiver Program

Senate Bill 525 (Chapter 890, Statutes of 2023) establishes a $25 health care employee minimum wage, with four different phase-in schedules for employers based on various characteristics. Labor Code Section 1182.14 subdivision (i), requires the Department of Industrial Relations (DIR) in collaboration with the Department of Health Care Access and Information (HCAI) to administer a waiver program for allowing for certain clinics to request a waiver from the new health care worker minimum wage rules, based on the clinic’s inability to meet specific financial parameters. If approved, the waiver would allow for a 12-month delay in the schedule of the new health care minimum wage requirements.

The issuance of waivers pursuant to this law shall be solely and exclusively within the authority of the DIR. The authority regarding whether the waiver program applicant demonstrates that it meets the requirements to obtain a waiver shall be solely and exclusively within the authority of the HCAI.

Minimum Wage Implementation Date

The healthcare minimum wage increases specified in the Labor Code Section 1182.14 and 1182.15 become effective October 16, 2024.

The conditions specified in subdivision (b) of Section 1182.16 of the labor code have been met once the State Department of Health Care Services notified the Legislature on October 1, 2024 that it initiated the data retrieval related to hospital quality assurance fees for the program period commencing January 1, 2025.

The following facilities are eligible to apply for a SB 525 Waiver

  • A clinic as defined in subdivision (h) of Section 1206 of the Health and Safety Code, that is not operated by or affiliated with a clinic described in subdivision (b) of Section 1206 of the Health and Safety Code.
  • A community clinic licensed under subdivision (a) of Section 1204 of the Health and Safety Code, and any associated intermittent clinic exempt from licensure under subdivision (h) of Section 1206 of the Health and Safety Code.
  • A rural health clinic, as defined in paragraph (1) of subdivision (l) of Section 1396(d) of Title 42 of the United States Code, that is not license-exempt.
  • An urgent care clinic that is owned by or affiliated with a facility defined in (ii) or (iii).

How to Apply

Although HCAI will provide technical assistance evaluating clinic applications, the application process for the waiver program is hosted and administered by DIR. For more information on the program and to submit a waiver application, please see DIR’s webpage here.

Financial statements, examined-level forecasting, and the declaration required by the application process can be submitted directly to HCAI at clinicwaiverprogram@hcai.ca.gov. Please be sure to include the name of your organization and a primary contact that program staff can reach out to for any questions.

A copy of the declaration verifying that all contents of the documents contained in the waiver request are true and correct, can be found here.

If you have any questions about the SB 525 clinic waiver program, feel free to email clinicwaiverprogram@hcai.ca.gov.

Facilities with Approved Waivers

If a waiver application is approved, Labor Code section 1182.14 subdivision (i)(2)(C) states that HCAI shall make the audited financial information submitted in conjunction with an approved waiver available on its internet website within 15 working days of the issuance of the waiver. In accordance with the law, the financial information for any organizations that have received waivers can be found below.

No waiver approvals have been issued at this time.

Financials

No waiver approvals have been issued at this time.