Thousands of healthcare workers in California are set to see wage increases from July 1 as part of a phased minimum pay law affecting specific employers and job categories across the state, with some workers moving closer to a $25 hourly minimum depending on facility size and type.
Phased Wage Increases Under State Law
The changes are part of Senate Bill 525, signed into law in 2023, which introduces a staged increase to minimum wages for healthcare workers across California.
From July 1, 2026, certain employees at large healthcare systems will see their minimum hourly wage rise to $25. This applies primarily to employers with more than 10,000 full-time staff, as well as some large healthcare facilities and dialysis centres.
The law is structured in phases, meaning different groups of workers reach the $25 threshold at different times depending on their employer type.
Not All Healthcare Workers Affected At The Same Time
The wage increase does not apply uniformly across the healthcare sector. Community clinics and some physician groups with 25 or more doctors currently have a lower minimum wage floor, which is set to rise incrementally to $22 in 2026, before reaching $25 in 2027.
Other healthcare facilities, including smaller hospitals and certain health agencies, are on a separate schedule. Some workers in these categories are expected to reach the $25 hourly level in 2028.
For some employees in independent or MediCal and Medicare-focused facilities, the timeline extends further, with the $25 threshold not reached until 2033.
Broader Minimum Wage Changes In California
The healthcare wage increases come alongside wider adjustments to California’s minimum wage system.
As of January 1, 2026, the statewide minimum wage increased to $16.90 per hour, up from $16.50, reflecting a standard cost-of-living adjustment under state law. This baseline applies across all sectors unless higher industry-specific minimums are in place.
Sector-Specific Wage Rules
California also applies different wage rules in certain industries. For example, fast food workers employed by large national chains with more than 60 locations receive a higher minimum wage of $20 per hour.
These sector-based rules exist alongside broader state minimum wage requirements, creating different pay levels depending on industry and employer size.
Ongoing Wage Policy Developments
The staged increases are part of broader labour policy adjustments across California, where minimum wage levels vary by sector, employer size and role classification.
While some local proposals have previously suggested even higher wage levels in certain cities, current state law continues to define the phased increases now being implemented.
