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California - City of Los Angeles enacts healthcare workers minimum wage ordinance

8/4/22

Author: ADP Admin/Tuesday, August 2, 2022/Categories: Compliance Corner , State Compliance Update, California

Los Angeles Mayor Eric Garcetti on July 7, 2022, signed into law the Healthcare Workers Minimum Wage Ordinance (Ordinance).

The Details: 

Under the Ordinance, effective August 13, 2022, the minimum wage for “healthcare workers” employed at privately-owned healthcare facilities within the City of Los Angeles will be no less than $25.00 per hour.

"Healthcare Worker” includes a clinician, professional, non-professional, nurse, certified nursing assistant, aide, technician, maintenance worker, janitorial or housekeeping staff, groundskeeper, guard, food service worker, laundry worker, pharmacist, nonmanagerial administrative worker and business office clerical worker, but does not include a manager or supervisor.

In addition, beginning January 1, 2024, the $25.00 minimum wage will be increased annually based on the cost of living.

The  Ordinance defines “Covered Healthcare Facility” as the following types of facilities, provided that they are privately owned and are located within the boundaries of the City of Los Angeles:

1. A licensed general acute care hospital as defined in Section 1250(a) of the California Health and Safety Code.

2. A clinic, as defined in Section 1206(d) of the California Health and Safety Code, that is conducted, operated, or maintained as an outpatient department of a general acute care hospital or acute psychiatric hospital.

3. A licensed acute psychiatric hospital as defined in Section 1250(b) of the California Health and Safety Code, including an acute psychiatric hospital that is a distinct part of another health facility.

4. A licensed skilled nursing facility, as defined in Section 1250(c) of the California Health and Safety Code, that is a distinct part of a general acute care hospital or acute psychiatric hospital.

5. A licensed residential care facility for the elderly, as defined in Section 1569.2 of the California Health and Safety Code, that is located or licensed at the same address as an acute psychiatric hospital or is located on the same campus or parcel of real property as an acute psychiatric hospital.

6. A licensed chronic dialysis clinic as described in Section 1204(b)(2) of the California Health and Safety Code. 

7. All facilities that are part of an Integrated Healthcare Delivery System.

It is important to note that the Ordinance allows a one-year court granted waiver under the conditions as described below:

This article is not intended to cause reduction in employment or work hours for Healthcare Workers. Therefore, a court may grant a one-year waiver from the Minimum Wage requirements of this article if an Employer can demonstrate by substantial evidence that compliance with this article would raise substantial doubt about the Employer’s ability to continue as a going concern under generally accepted accounting standards. The evidence must include documentation of the Employer’s financial condition, as well as the condition of any parent or affiliated entity, and evidence of the actual or potential direct financial impact of compliance with this article. A one-year waiver granted by a court pursuant to this section does not exempt an Employer from complying with any and all federal, state, or local laws and regulations, including any other applicable federal, state, or local minimum wage requirement.

Next Steps:

Employers at privately-owned healthcare facilities, unless granted a one-court granted waiver, must as of August 13, 2022, pay covered employees at least $25.00 per hour.

For a copy of the Ordinance please click on the link provided below.

22-1100-S4_ord_187566_08-14-2022.pdf (lacity.org)

Have Questions?

Please contact your dedicated service professional with any questions.  

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