text:
(a) The Legislature finds and declares as follows:

(1) Workers in the health care industry, including workers at general acute care hospitals, acute psychiatric hospitals, medical offices and clinics, behavioral health centers, and residential care centers provide vital health care services to California residents, including emergency care, labor and delivery, cancer treatments, and primary and specialty care. Similarly, dialysis clinics provide life-preserving care to patients with end-stage renal disease and are part of the continuum of kidney care that also includes hospitals and health systems. Residents and visitors to the state rely on access to this high-quality health care.

(2) Higher wages are an important means of retaining an experienced workforce and attracting new workers. A stable workforce benefits patients and improves quality of care.

(3) Employers across multiple industries are raising wages. The health care sector in California must offer higher wages to remain competitive.

(4) Members of the health care team such as certified nursing assistants, patient aides, technicians, and food service workers, among many others, are essential to both routine medical care and emergency response efforts.

(5) Even before the COVID-19 pandemic, California was facing an urgent and immediate shortage of health care workers, adversely impacting the health and well-being of Californians, especially economically disadvantaged Californians. The pandemic has worsened these shortages. Higher wages are needed to attract and retain health care workers to treat patients, including being prepared to provide necessary care in an emergency.

(6) The Legislature finds and declares that laws that establish, require, impose, limit or otherwise relate to wages, salary, or compensation affect access to quality health care for all residents of, and visitors to, the state provided by licensed health care facilities, which serve as a critical part of the state’s ability to respond to catastrophic emergencies. The Legislature also finds and declares that the time limitations and other provisions established by this section are necessary to stabilize the health care system following the state and federal public health emergencies related to COVID-19, the closure and bankruptcy of licensed health care facilities, and the reduction in vital services by licensed health care facilities due to financial distress and the health care workforce crisis that has resulted in staffing shortages and strain for health care workers. The Legislature further finds and declares that access to quality health care and the stability of the health care system is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this section occupies the whole field of wages, salary, or compensation for covered health care facility employees, and applies to all cities and counties, including charter cities, charter counties, and charter cities and counties during the stabilization period provided by this section.

(7) The Legislature finds and declares that it is the intent of the Legislature that subclause (I) of clause (ii) of subparagraph (B) of paragraph (2) of subdivision (b) is declarative of existing law.

(b) As used in this section:

(1) “Adjusted patient days” means the total gross patient revenue, divided by gross revenue provided for inpatient services, multiplied by the number of patient days.

(2) (A) “Covered health care employee” means any of the following:

(i) An employee of a health care facility employer who provides patient care, health care services, or services supporting the provision of health care, which includes, but is not limited to, employees performing work in the occupation of a nurse, physician, caregiver, medical resident, intern or fellow, patient care technician, janitor, housekeeping staff person, groundskeeper, guard, clerical worker, nonmanagerial administrative worker, food service worker, gift shop worker, technical and ancillary services worker, medical coding and medical billing personnel, scheduler, call center and warehouse worker, and laundry worker, regardless of formal job title.

(ii) A contracted or subcontracted employee described in subparagraph (B).

(B) “Covered health care employee” includes a contracted or subcontracted employee, if clauses (i) and (ii) apply:

(i) The employee’s employer contracts with the covered health care facility employer, or with a contractor or subcontractor to the covered health care facility employer, to provide health care services, or services supporting the provision of health care.

(ii) (I) Consistent with the definitions of “employ” and “employer” in the Industrial Welfare Commission wage orders, the covered health care facility employer directly or indirectly, or through an agent or any other person, engages, suffers, or permits an employee to work, or exercises control over the employee’s wages, hours or working conditions, or

(II) The employee performs contracted or subcontracted work primarily on the premises of a covered health care facility. For purposes of this subparagraph, “primarily” means more than one-half of the employee’s work time during a workweek.

(iii) A contracted or subcontracted employee shall be paid the applicable minimum wage in this section for all hours worked providing patient care, health care services, or services supporting the provision of health care.

(C) Notwithstanding subparagraph (A), “covered health care employee” does not include:

(i) Employment as an outside salesperson.

(ii) Any work performed by a public employee where the public employee is not primarily engaged in services described in clause (i) of subparagraph (A) performed for a covered health care facility. For purposes of this subparagraph, “primarily” means more than one-half of the employee’s work time during a workweek.

(iii) Delivery or waste collection work on the premises of a covered health care facility, provided that the delivery or waste collection worker is not an employee of any person that owns, controls, or operates a covered health care facility.

(iv) Medical transportation services in or out of a covered health care facility, provided that the medical transportation services worker is not an employee of any person that owns, controls, or operates a covered health care facility.

(3) (A) “Covered health care facility” means any of the following:

(i) A facility or other work site that is part of an integrated health care delivery system.

(ii) A licensed general acute care hospital, as defined in subdivision (a) of Section 1250 of the Health and Safety Code, including a distinct part of any such hospital.

(iii) A licensed acute psychiatric hospital, as defined in subdivision (b) of Section 1250 of the Health and Safety Code, including a distinct part of any such hospital.

(iv) A special hospital, as defined in subdivision (f) of Section 1250 of the Health and Safety Code.

(v) A licensed skilled nursing facility, as defined in subdivision (c) of Section 1250 of the Health and Safety Code, if owned, operated, or controlled by a hospital or integrated health care delivery system or health care system.

(vi) A patient’s home when health care services are delivered by an entity owned or operated by a general acute care hospital or acute psychiatric hospital.

(vii) A licensed home health agency, as defined in subdivision (a) of Section 1727 of the Health and Safety Code.

(viii) A clinic, as defined in subdivision (b) of Section 1204 of the Health and Safety Code, including a specialty care clinic, or a dialysis clinic.

(ix) A psychology clinic, as defined in Section 1204.1 of the Health and Safety Code.

(x) A clinic as defined in subdivision (d), (g), or (l) of Section 1206 of the Health and Safety Code.

(xi) A licensed residential care facility for the elderly, as defined in Section 1569.2 of the Health and Safety Code, if affiliated with an acute care provider or owned, operated, or controlled by a general acute care hospital, acute psychiatric hospital, or the parent entity of a general acute care hospital or acute psychiatric hospital.

(xii) A psychiatric health facility, as defined in Section 1250.2 of the Health and Safety Code.

(xiii) A mental health rehabilitation center, as defined in Section 5675 of the Welfare and Institutions Code.

(xiv) A community clinic licensed under subdivision (a) of Section 1204 of the Health and Safety Code, an intermittent clinic exempt from licensure under subdivision (h) of Section 1206 of the Health and Safety Code, or a clinic operated by any political subdivisions of the state, including the University of California or a city or county that is exempt from licensure under subdivision (b) of Section 1206 of the Health and Safety Code.

(xv) A rural health clinic, as defined in paragraph (1) of subdivision (l) of Section 1396d of Title 42 of the United States Code, that is not license exempt.

(xvi) An urgent care clinic.

(xvii) An ambulatory surgical center that is certified to participate in the Medicare Program under Title XVIII (42 U.S.C. Sec. 1395 et seq.) of the federal Social Security Act.

(xviii) A physician group.

(xix) A county correctional facility that provides health care services.

(xx) A county mental health facility.

(B) “Covered health care facility” does not include either of the following:

(i) Any health care facility described in subparagraph (A) that is owned, controlled, or operated by the state or any state agency of the executive branch. As used in this subparagraph, “state agency” includes every state office, officer, department, division, bureau, board, and commission under the executive branch, including any constitutional offices or officers, California State University, or California Community College, but does not include a health care district or the University of California.

(ii) A tribal clinic exempt from licensure under subdivision (c) of Section 1206 of the Health and Safety Code, or an outpatient setting conducted, maintained, or operated by a federally recognized Indian tribe, tribal organization, or urban Indian organization, as defined in Section 1603 of Title 25 of the United States Code.

(4) “Employ” means to engage, suffer, or permit to work.

(5) “Employee” means any person employed by an employer.

(6) “Employer” means a person who directly or indirectly, or through an agent or any other person, employs or exercises control over the wages, hours, or working conditions of any person. “Employer” includes political subdivisions of the state, health care districts, the University of California, and municipalities.

(7) “Full-time equivalent employee” means the total paid hours at a covered health care facility, including an integrated health care delivery system, as of January 1, 2022,, divided by 2,080. The number of full-time equivalent employees shall be determined as follows:

(A) The number of full-time equivalent employees shall be as detailed in the Department of Health Care Access and Information’s 2021 Pivot Table – Hospital Annual Selected File (April 2023 Extract) and published online at https://data.chhs.ca.gov/dataset/hospital-annual-financial-data-selected-data-pivot-tables. For purposes of determining the number of full-time equivalent employees under this subparagraph, published data in the pivot table shall be aggregated to determine the total full-time equivalent employees for an integrated health care delivery system or health system. As provided by paragraph (1) of subdivision (c), any covered health care facility employer that is part of these systems shall be subject to the minimum wage schedule described in paragraph (1) of subdivision (c).

(B) Any covered health care facility employer that does not report the data referenced in subparagraph (A), but had 10,000 or more full-time equivalent employees as of January 1, 2022, shall be subject to the minimum wage schedule described in paragraph (1) of subdivision (c). For the purposes of this paragraph, “full-time equivalent employees” means the total number of paid hours at a nonreporting covered health care facility employer divided by 2,080. This subparagraph does not apply to county entities, except as counties that are specifically covered in subdivision (c).

(8) “Health care services” means patient care-related services including nursing; caregiving; services provided by medical residents, interns, or fellows; technical and ancillary services; janitorial work; housekeeping; groundskeeping; guard duties; business office clerical work; food services; laundry; medical coding and billing; call center and warehouse work; scheduling; and gift shop work; but only where such services support patient care.

(9) “Health care worker minimum wage” means the minimum wage rate established by this section.

(10) “Health care system” means a parent entity that owns, controls, or operates two or more separately licensed hospitals.

(11) “Hospital with a high governmental payor mix” means a licensed acute care hospital, as defined in subdivision (a) or (b) of Section 1250 of the Health and Safety Code, where the combined Medicare and Medi-Cal payor mix is 90 percent or greater, as determined by using the adjusted patient days from the Department of Health Care Access and Information annual financial disclosure report, as recorded and calculated as of January 1, 2022, as per the Department of Health Care Access and Information guidance. A hospital shall qualify pursuant to this paragraph only if the combined payor mix of both the hospital and the health care system to which it belongs, if any, is 90 percent or greater.

(12) “Independent hospital with an elevated governmental payor mix” means all of the following:

(A) A hospital, as defined in subdivision (a) or (b) of Section 1250 of the Health and Safety Code, where the combined Medicare and Medi-Cal payor mix is 75 percent or greater, as determined by using the adjusted patient days from the Department of Health Care Access and Information annual financial disclosure report, as recorded and calculated as of January 1, 2022, as per the Department of Health Care Access and Information guidance.

(B) The hospital is not owned, controlled, or operated by any parent entity with two or more separately licensed hospitals.

(13) “Integrated health care delivery system” means an entity or group of related entities that includes both of the following: (A) one or more hospitals and (B) one or more physician groups, health care service plans, medical foundation clinics, other health care facilities, or other entities, providing health care or supporting the provision of health care, where the hospital or hospitals and other entities are related through one of the following:

(A) Parent and subsidiary relationships, joint or common ownership or control, common branding, or common boards of directors and shared senior management.

(B) A contractual relationship in which affiliated covered physician groups or medical foundation clinics contract with a health care service plan, hospital or other part of the system, all operating under a common trade name.

(C) A contractual relationship in which a nonprofit health care service plan provides medical services to enrollees in a specific geographic region of the state through an affiliated hospital system, and contracts with a single covered physician group in each geographic region of the state to provide medical services to a majority of the plan’s enrollees in that region.

(14) “Physician group” means a medical group practice, including a professional medical corporation, as defined in Section 2406 of the Business and Professions Code, another form of corporation controlled by physicians and surgeons, or a medical partnership, provided that the group includes a total of 25 or more physicians.

(15) “Rural independent covered health care facility” means a hospital that is not part of an integrated health care delivery system and is not owned, controlled, or operated by any parent entity with two or more separately licensed hospitals and any of the following:

(A) A hospital that is located in a county that is not designated as a metropolitan core-based statistical area as of March 2020.

(B) A small and rural hospital, as defined in Section 124840 of the Health and Safety Code.

(C) A rural general acute care hospital, as described in Section 1250 of the Health and Safety Code.

(16) “Urgent care clinic” means a facility or clinic that provides immediate, nonemergent ambulatory medical care to patients, including, but not limited to, facilities known as walk-in clinics or centers or urgent care centers.

(c) (1) For any covered health care facility employer with 10,000 or more full-time equivalent employees, any covered health care facility employer that is a part of an integrated health care delivery system or health care system with 10,000 or more full-time equivalent employees, any covered health care facility employer that is a dialysis clinic as defined in subdivision (b) of Section 1204 of the Health and Safety Code or that is a person that owns, controls, or operates a dialysis clinic, or a covered health facility owned, affiliated, or operated by a county with a population of more than 5,000,000 as of January 1, 2023, the minimum wage for all covered health care employees shall be as follows:

(A) From July 1, 2024, to June 30, 2025, inclusive, twenty-three dollars ($23) per hour.

(B) From July 1, 2025, to June 30, 2026, inclusive, twenty-four dollars ($24) per hour.

(C) From July 1, 2026, and until adjusted pursuant to subdivision (d), twenty-five dollars ($25) per hour.

(2) For any hospital that is a hospital with a high governmental payor mix, an independent hospital with an elevated governmental payor mix, a rural independent covered health care facility, or a covered health care facility that is owned, affiliated, or operated by a county with a population of less than 250,000 as of January 1, 2023, the minimum wage for all covered health care employees shall be as follows:

(A) From July 1, 2024, to June 30, 2033, inclusive, eighteen dollars ($18) per hour, with 3.5 percent increases annually.

(B) From July 1, 2033, and until adjusted pursuant to subdivision (d), twenty-five ($25) per hour.

(3) (A) For any health care facility specified in clauses (i) to (iv), inclusive, the minimum wage for all covered health care employees shall be as set forth in subparagraph (B).

(i) 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.

(ii) 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.

(iii) A rural health clinic, as defined in paragraph (1) of subdivision (l) of Section 1396d of Title 42 of the United States Code, that is not license-exempt.

(iv) An urgent care clinic that is owned by or affiliated with a facility defined in clause (ii) or (iii).

(B) (i) From July 1, 2024, to June 30, 2026, inclusive, twenty-one dollars ($21) per hour.

(ii) From July 1, 2026, to June 30, 2027, inclusive, twenty-two dollars ($22) per hour.

(iii) From July 1, 2027, and until adjusted by subdivision (d), twenty-five dollars ($25) per hour.

(4) For all other covered health care facility employers, the minimum wage for all covered health care employees shall be as follows:

(A) From July 1, 2024, to June 30, 2026, inclusive, twenty-one dollars ($21) per hour.

(B) From July 1, 2026, to June 30, 2028, inclusive, twenty-three dollars ($23) per hour.

(C) From July 1, 2028, and until adjusted pursuant to subdivision (d), twenty-five dollars ($25) per hour.

(5) Notwithstanding any other provision of this subdivision, a covered health care facility that is county owned, affiliated, or operated shall not be required to comply with this subdivision before January 1, 2025. Commencing January 1, 2025, a covered health care facility that is county owned, affiliated, or operated shall comply with the appropriate schedule described in this subdivision.

(d) (1) Following the implementation of the minimum wage increase specified in the following portions of subdivision (c): subparagraph (C) of paragraph (1), subparagraph (B) of paragraph (2), clause (iii) of subparagraph (B) of paragraph (3), or subparagraph (C) of paragraph (4), on or before August 1 of the following year, and on or before each August 1 thereafter, the Director of Finance shall calculate an adjusted minimum wage. The calculation shall increase the health care worker minimum wage by the lesser of 3.5 percent or the rate of change in the averages of the most recent July 1 to June 30, inclusive, period over the preceding July 1 to June 30, inclusive, period for the United States Bureau of Labor Statistics nonseasonally adjusted United States Consumer Price Index for Urban Wage Earners and Clerical Workers (U.S. CPI-W). The result shall be rounded to the nearest ten cents ($0.10). Each adjusted health care worker minimum wage increase calculated under this subdivision shall take effect on the following January 1.

(2) If the rate of change in the averages of the most recent July 1 to June 30, inclusive, period over the preceding July 1 to June 30, inclusive, period for the United States Bureau of Labor Statistics nonseasonally adjusted U.S. CPI-W is negative, there shall be no increase or decrease in the health care worker minimum wage pursuant to this subdivision on the following January 1.

(e) The health care worker minimum wages shall constitute the state minimum wages for covered health care employment for all purposes under this code and the wage orders of the Industrial Welfare Commission.

(f) (1) A health care worker minimum wage shall be enforceable by the Labor Commissioner through the procedures set forth in Section 98, 98.1, 98.2, 98.3, 98.7, 98.74, or 1197.1, or by a covered worker through a civil action, through the same means and with the same relief available for violation of any other state minimum wage requirement.

(2) (A) The Department of Industrial Relations shall amend, supplement, and republish the Industrial Welfare Commission’s wage orders to be consistent with this section. The Department of Industrial Relations shall not make other changes to the wage orders of the Industrial Welfare Commission that are in existence on the effective date of this section. The Department of Industrial Relations shall meet the requirements set forth in Section 1183.

(B) Every employer that is subject to this section shall comply with both of the following:

(i) Post a copy of the order as amended, supplemented and republished by the Department of Industrial Relations under this section and keep it posted in a conspicuous location frequented by employees during the hours of the workday, as required by Section 1183.

(ii) Provide to each employee on the effective date of the earliest minimum wage increase pursuant to subdivision (c), a written notice, in the language the employer normally uses to communicate employment-related information to the employee, indicating the paragraph of subdivision (c) that applies to the employer and the health care worker minimum wage schedule applicable to the employee.

(C) Notwithstanding paragraph (6) of subdivision (h), any amendment, supplement, and republication pursuant to this section shall be exempt from the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), and from the procedures set forth in Sections 1177, 1178.5, 1181, 1182, and 1182.1.

(g) For covered health care employment where the compensation of the employee is on a salary basis, the employee shall earn a monthly salary equivalent to no less than 150 percent of the health care worker minimum wage or 200 percent of the minimum wage, as described in Section 1182.12, whichever is greater, for full-time employment in order to qualify as exempt from the payment of minimum wage and overtime under the law of this state, including where the employer is a political subdivision of the state, a health care district, the University of California, or a municipality.

(h) (1) On or before January 31, 2024, the Department of Health Care Access and Information shall publish the following information on their internet website:

(A) A list of all covered health care facility employers with 10,000 or more full-time equivalent employees, or covered health care facility employers that are a part of an integrated health care delivery system or health care system with 10,000 or more full-time equivalent employees. This list shall only include those covered health care facility employers included in the Department of Health Care Access and Information’s 2021 Pivot Table – Hospital Annual Selected File (April 2023 Extract) and published online at https://data.chhs.ca.gov/dataset/hospital-annual-financial-data-selected-data-pivot-tables. For purposes of determining the number of full-time equivalent employees under this subparagraph, published data in the pivot table shall be aggregated to determine the total full-time equivalent employees for an integrated health care delivery system or health system.

(B) A list of all hospitals that qualify as a hospital with a high governmental payor mix, independent hospital with an elevated governmental payor mix, or a rural independent covered health care facility. This list shall only include those covered health care facility employers included in the Department of Health Care Access and Information’s 2021 Pivot Table – Hospital Annual Selected File (April 2023 Extract) and published online at https://data.chhs.ca.gov/dataset/hospital-annual-financial-data-selected-data-pivot-tables. For purposes of determining the number of full-time equivalent employees under this subparagraph, published data in the pivot table shall be aggregated to determine the total full-time equivalent employees for an integrated health care delivery system or health system.

(2) If a covered health care facility believes that they were inappropriately excluded from the list of hospitals that qualify as a hospital with a high governmental payor mix, independent hospital with an elevated governmental payor mix, or a rural independent covered health care facility, the health facility may file a request with the Department of Health Care Access and Information to be classified as a hospital with a high governmental payor mix, independent hospital with an elevated governmental payor mix, or a rural independent covered health care facility. The requesting hospital shall provide the following:

(A) The physical location of the requesting hospital.

(B) The revised Annual Disclosure Report pursuant to Section 128755 of the Health and Safety Code that reflects the payor mix of the requesting hospital, including the percent of uninsured patients and patients covered by Medi-Cal and Medicare.

(C) Any other information as determined necessary by the Department of Health Care Access and Information.

(3) The Department of Health Care Access and Information shall classify a requesting hospital as a hospital with a high governmental payor mix, independent hospital with an elevated governmental payor mix, or a rural independent covered health care facility if they meet the definitions provided under this section.

(4) The rules and regulations process described in paragraph (6) shall require the Department of Health Care Access and Information to consider input by stakeholders including health care employees, their representatives, consumers, and health care employers as to the accuracy of the classification of covered health care facility employers according to the numbers of full-time equivalent employees, system affiliation, payor mix, and any other relevant information.

(5) The Department of Health Care Access and Information shall not accept any requests for classification as a hospital with a high governmental payor mix, independent hospital with an elevated governmental payor mix, or a rural independent covered health care facility after January 31, 2025.

(6) Until January 1, 2025, any necessary rules and regulations for the purpose of implementing this section may be adopted as emergency regulations in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). The adoption of emergency regulations pursuant to this section shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare.

(i) (1) The Department of Industrial Relations shall, in collaboration with the Department of Health Care Access and Information, administer a waiver program for covered health care facilities described in clauses (i) to (iv), inclusive, of subparagraph (A) of paragraph (3) of subdivision (c), which will allow a covered health care facility to apply for a 12-month delay in schedule of the health care minimum wage requirements in this section. The issuance of waivers pursuant to this subdivision shall be solely and exclusively within the authority of the Department of Industrial Relations pursuant to paragraph (3). The authority regarding whether the covered health care facility demonstrates that it meets the requirements to obtain a waiver, set forth in paragraphs (2) and (3) shall be solely and exclusively within the authority of the Department of Health Care Access and Information.

(2) In order to obtain a waiver, a covered health care facility shall demonstrate at the time the waiver application is submitted that it meets the criteria as set forth in subparagraphs (A) and (B) of this paragraph.

(A) Each request for a waiver shall include the covered health care facility’s, and any parent or affiliated company’s, most recent audited financial statements and year-to-date internally prepared financial statements no older than 45 days prior to the date of submission; examined level forecasting with an attestation from an independent certified public accountant demonstrating that compliance with this section would raise doubt about the covered health care facility’s and its parent company’s ability to maintain a positive cashflow over the next 12 months; and balance sheets showing that the covered health care facility and its parent company have less than 45 days cash on hand and a current ratio of current assets to current liabilities of one or less.

(B) The covered health care facility shall provide a declaration verifying that the contents of the documents contained in the waiver request are true and correct. The declaration shall be in a form and manner specified by the Department of Health Care Access and Information and signed by an authorized executive officer of the covered health care facility.

(C) The Department of Industrial Relations shall make approved information available on its internet website within 15 working days of the issuance of the waiver. The Department of Health Care Access and Information 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.

(3) If, following review of the documentation submitted pursuant to subparagraphs (A) and (B) of paragraph (2), the Department of Health Care Access and Information determines that the covered health care facility has demonstrated that it meets the criteria for a waiver set forth in subdivision (i), the Department of Industrial Relations shall issue a waiver for the covered health care facility. If a covered health care facility is issued a waiver, all dates in clauses (i) to (iii), inclusive, of subparagraph (B) of paragraph (3) of subdivision (c), or any superseding dates pursuant to a previously issued waiver that are on or after the effective date of the issued waiver, are postponed by 12 months for that covered health care facility.

(4) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the Department of Industrial Relations and the Department of Health Care Access and Information may implement, interpret, or make specific this subdivision, in whole or in part, by means of information notices or other similar instructions, without taking any further regulatory action.

(5) If a waiver is issued, any covered health care facility affected by the waiver shall within 10 days of notice from the Department of Industrial Relations:

(A) Post a copy of the waiver, including the applicable minimum wage, in a conspicuous location frequented by employees during the hours of the workday.

(B) Provide to each covered health care employee, a written notice, in the language the covered health care facility normally uses to communicate employment-related information to the covered health care employee, informing the covered health care employee the covered health care facility had applied for and received a one-year waiver of the increase of the minimum wage and stating the applicable minimum wage.

(6) A covered health care facility may apply for and be issued a waiver pursuant to this subdivision in consecutive years. However, a waiver shall not be available after July 1, 2032, and every covered health care facility described in clauses (i) to (iv), inclusive, of subparagraph (A) of paragraph (3) of subdivision (c) shall pay the adjusted wage required by subdivision (d) beginning July 1, 2033, regardless of whether the facility received any waivers.

(7) A waiver issued pursuant to this subdivision shall not exempt a covered health care facility from complying with any and all federal, state, or local laws and regulations, except to the extent that such local laws and regulations are preempted in accordance with subdivision (j).

(8) Notwithstanding paragraph (3) of subdivision (b), for purposes of this subdivision only, “covered health care facility” shall mean the clinics described in clauses (i) to (iv), inclusive, of subparagraph (A) of paragraph (3) of subdivision (c).

(j) (1) An ordinance, regulation, or administrative action applicable to a covered health care facility, as defined in this section, that establishes, requires, imposes, limits, or otherwise relates to wages or compensation for covered health care facility employees, as defined in this section, shall not be enacted or enforced in or by any city, county, city and county, including charter cities, charter counties, and charter cities and counties.

(2) Any ordinance, regulation, or administrative action taken by any city, county, or city and county, including charter cities, charter counties, and charter cities and counties, that is enacted or takes effect after September 6, 2023, related to covered health facilities, that establishes, requires, imposes, limits, or otherwise relates to wages, salaries, or compensation for covered health care facility employees, as defined in this section, is void.

(3) This subdivision does not preclude any employer, including a city, county, city and county, including charter cities, charter counties, and charter cities and counties, that employs health care employees, from establishing higher wage, salary, or compensation rates for its employees or contracted or subcontracted employees.

(4) This subdivision does not preclude a city, county, city and county, including charter cities, charter counties, and charter cities and counties from establishing a minimum wage that would apply uniformly to all employees across all industries and sectors and not exclusively to employees employed by covered health care facilities.

(5) This subdivision does not preclude a city, county, city and county, including charter cities, charter counties, and charter cities and counties, from establishing or enforcing a minimum wage applicable to covered health care facility employees, as defined in this section, after January 1, 2034. Any such ordinance, regulation, or administrative action shall be evaluated under ordinary preemption principles.

(6) This subdivision does not preclude a city, county, city and county, including charter cities, charter counties, and charter cities and counties, from enacting an ordinance or regulation, or taking administrative action, limiting or otherwise relating to compensation for covered health care facility employees, as defined in this section, after January 1, 2030. Any such ordinance, regulation, or administrative action shall be evaluated under ordinary preemption principles.

(7) This subdivision shall be effective only if the provisions of this section that require health care worker minimum wages take effect.

(k) For purposes of implementing this section, the Department of Industrial Relations and the Department of Health Care Access and Information may enter into exclusive or nonexclusive contracts, or amend existing contracts, on a bid or negotiated basis. Contracts entered into or amended pursuant to this subdivision shall be exempt from Chapter 6 (commencing with Section 14825) of Part 5.5 of Division 3 of Title 2 of the Government Code, Section 19130 of the Government Code, Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code, and the State Administrative Manual, and shall be exempt from the review or approval of any division of the Department of General Services.

history: (History: Amended by Stats. 2024, Ch. 40, Sec. 27. (SB 159) Effective June 29, 2024.)


kind: section

code: LAB

text:
(a) The Legislature finds and declares as follows:

(1) Workers in the health care industry, including workers at general acute care hospitals, acute psychiatric hospitals, medical offices and clinics, behavioral health centers, and residential care centers provide vital health care services to California residents, including emergency care, labor and delivery, cancer treatments, and primary and specialty care. Similarly, dialysis clinics provide life-preserving care to patients with end-stage renal disease and are part of the continuum of kidney care that also includes hospitals and health systems. Residents and visitors to the state rely on access to this high-quality health care.

(2) Higher wages are an important means of retaining an experienced workforce and attracting new workers. A stable workforce benefits patients and improves quality of care.

(3) Employers across multiple industries are raising wages. The health care sector in California must offer higher wages to remain competitive.

(4) Members of the health care team such as certified nursing assistants, patient aides, technicians, and food service workers, among many others, are essential to both routine medical care and emergency response efforts.

(5) Even before the COVID-19 pandemic, California was facing an urgent and immediate shortage of health care workers, adversely impacting the health and well-being of Californians, especially economically disadvantaged Californians. The pandemic has worsened these shortages. Higher wages are needed to attract and retain health care workers to treat patients, including being prepared to provide necessary care in an emergency.

(6) The Legislature finds and declares that laws that establish, require, impose, limit or otherwise relate to wages, salary, or compensation affect access to quality health care for all residents of, and visitors to, the state provided by licensed health care facilities, which serve as a critical part of the state’s ability to respond to catastrophic emergencies. The Legislature also finds and declares that the time limitations and other provisions established by this section are necessary to stabilize the health care system following the state and federal public health emergencies related to COVID-19, the closure and bankruptcy of licensed health care facilities, and the reduction in vital services by licensed health care facilities due to financial distress and the health care workforce crisis that has resulted in staffing shortages and strain for health care workers. The Legislature further finds and declares that access to quality health care and the stability of the health care system is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this section occupies the whole field of wages, salary, or compensation for covered health care facility employees, and applies to all cities and counties, including charter cities, charter counties, and charter cities and counties during the stabilization period provided by this section.

(7) The Legislature finds and declares that it is the intent of the Legislature that subclause (I) of clause (ii) of subparagraph (B) of paragraph (2) of subdivision (b) of this section is declarative of existing law.

(b) As used in this section:

(1) (A) “Covered health care employee” means any of the following:

(i) An employee of a health care facility employer who provides patient care, health care services, or services supporting the provision of health care, which includes, but is not limited to, employees performing work in the occupation of a nurse, physician, caregiver, medical resident, intern or fellow, patient care technician, janitor, housekeeping staff person, groundskeeper, guard, clerical worker, nonmanagerial administrative worker, food service worker, gift shop worker, technical and ancillary services worker, medical coding and medical billing personnel, scheduler, call center and warehouse worker, and laundry worker, regardless of formal job title.

(ii) A contracted or subcontracted employee described in subparagraph (B).

(B) “Covered health care employee” includes a contracted or subcontracted employee, if clauses (i) and (ii) apply:

(i) The employee’s employer contracts with the covered health care facility employer, or with a contractor or subcontractor to the covered health care facility employer, to provide health care services, or services supporting the provision of health care.

(ii) (I) Consistent with the definitions of “employ” and “employer” in the Industrial Welfare Commission wage orders, the covered health care facility employer directly or indirectly, or through an agent or any other person, engages, suffers, or permits an employee to work, or exercises control over the employee’s wages, hours or working conditions, or

(II) The employee performs contracted or subcontracted work primarily on the premises of a covered health care facility. For purposes of this subparagraph, “primarily” means more than one-half of the employee’s work time during a workweek.

(iii) A contracted or subcontracted employee shall be paid the applicable minimum wage in this section for all hours worked providing patient care, health care services, or services supporting the provision of health care.

(C) Notwithstanding subparagraph (A), “covered health care employee” does not include:

(i) Employment as an outside salesperson.

(ii) Any work performed by a public employee where the public employee is not primarily engaged in services described in clause (i) of subparagraph (A) performed for a covered health care facility. For purposes of this subparagraph, “primarily” means more than one-half of the employee’s work time during a workweek.

(iii) Delivery or waste collection work on the premises of a covered health care facility, provided that the delivery or waste collection worker is not an employee of any person that owns, controls, or operates a covered health care facility.

(iv) Medical transportation services in or out of a covered health care facility, provided that the medical transportation services worker is not an employee of any person that owns, controls, or operates a covered health care facility.

(2) (A) “Covered health care facility” means a licensed skilled nursing facility, as defined in subdivision (c) of Section 1250 of the Health and Safety Code, that is not covered by Section 1182.14.

(B) “Covered health care facility” does not include either of the following:

(i) A health care facility, as described in subparagraph (A), that is owned, controlled, or operated by the state or any state agency of the executive branch. As used in this subparagraph, “state agency” includes every state office, officer, department, division, bureau, board, and commission under the executive branch, including any constitutional offices or officers, California State University, or California Community College, but does not include a health care district or the University of California.

(ii) A tribal clinic exempt from licensure under subdivision (c) of Section 1206 of the Health and Safety Code, or an outpatient setting conducted, maintained, or operated by a federally recognized Indian tribe, tribal organization, or urban Indian organization, as defined in Section 1603 of Title 25 of the United States Code.

(3) “Employ” means to engage, suffer, or permit to work.

(4) “Employee” means any person employed by an employer.

(5) “Employer” means a person who directly or indirectly, or through an agent or any other person, employs or exercises control over the wages, hours, or working conditions of any person.

(6) “Health care services” means patient care-related services including nursing; caregiving; services provided by medical residents, interns, or fellows; technical and ancillary services; janitorial work; housekeeping; groundskeeping; guard duties; business office clerical work; food services; laundry; medical coding and billing; call center and warehouse work; scheduling; and gift shop work; but only where such services support patient care.

(7) “Health care worker minimum wage” means the minimum wage rate established by this section.

(c) For any covered health care facility employer covered by this section, the minimum wage for all covered health care employees shall be as follows:

(1) From July 1, 2024, to June 30, 2026, inclusive, twenty-one dollars ($21) per hour.

(2) From July 1, 2026, to June 30, 2028, inclusive, twenty-three dollars ($23) per hour.

(3) From July 1, 2028, and until adjusted pursuant to subdivision (d), twenty-five dollars ($25) per hour.

(d) (1) Following the implementation of the minimum wage increase specified in subdivision (c), on or before August 1 of the following year, and on or before each August 1 thereafter, the Director of Finance shall calculate an adjusted minimum wage. The calculation shall increase the health care worker minimum wage by the lesser of 3.5 percent or the rate of change in the averages of the most recent July 1 to June 30, inclusive, period over the preceding July 1 to June 30, inclusive, period for the United States Bureau of Labor Statistics nonseasonally adjusted United States Consumer Price Index for Urban Wage Earners and Clerical Workers (U.S. CPI-W). The result shall be rounded to the nearest ten cents ($0.10). Each adjusted health care worker minimum wage increase calculated under this subdivision shall take effect on the following January 1.

(2) If the rate of change in the averages of the most recent July 1 to June 30, inclusive, period over the preceding July 1 to June 30, inclusive, period for the United States Bureau of Labor Statistics nonseasonally adjusted U.S. CPI-W is negative, there shall be no increase or decrease in the health care worker minimum wage pursuant to this subdivision on the following January 1.

(e) The health care worker minimum wages shall constitute the state minimum wages for covered health care employment for all purposes under this code and the wage orders of the Industrial Welfare Commission.

(f) (1) A health care worker minimum wage shall be enforceable by the Labor Commissioner in accordance with the procedures set forth in Section 98, 98.1, 98.2, 98.3, 98.7, 98.74, or 1197.1, or by a covered worker through a civil action, through the same means and with the same relief available for violation of any other state minimum wage requirement.

(2) (A) The Department of Industrial Relations shall amend, supplement, and republish the Industrial Welfare Commission’s wage orders to be consistent with this section. The Department of Industrial Relations shall make no other changes to the wage orders of the Industrial Welfare Commission that are in existence on the effective date of this section. The Department of Industrial Relations shall meet the requirements set forth in Section 1183.

(B) Every employer that is subject to this section shall comply with all of the following:

(i) Post a copy of the order as amended, supplemented and republished by the Department of Industrial Relations under this section and keep it posted in a conspicuous location frequented by employees during the hours of the workday, as required by Section 1183.

(ii) Provide to each employee on the effective date of the earliest minimum wage increase pursuant to subdivision (c), a written notice, in the language the employer normally uses to communicate employment-related information to the employee, indicating the paragraph of subdivision (c) that applies to the employer and the health care worker minimum wage schedule applicable to the employee.

(C) Any amendment, supplement, and republication pursuant to this section shall be exempt from the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), and from the procedures set forth in Sections 1177, 1178.5, 1181, 1182, and 1182.1.

(g) For covered health care employment where the compensation of the employee is on a salary basis, the employee shall earn a monthly salary equivalent to no less than 150 percent of the health care worker minimum wage or 200 percent of the minimum wage, as described in Section 1182.12, whichever is greater, for full-time employment in order to qualify as exempt from the payment of minimum wage and overtime under the law of this state, including where the employer is a political subdivision of the state, a health care district, the University of California, or a municipality.

(h) (1) An ordinance, regulation, or administrative action applicable to a covered health care facility, as defined in this section, that establishes, requires, imposes, limits, or otherwise relates to wages or compensation for covered health care facility employees, as defined in this section, shall not be enacted or enforced in or by any city, county, city and county, including charter cities, charter counties, and charter cities and counties.

(2) Any ordinance, regulation, or administrative action taken by any city, county, or city and county, including charter cities, charter counties, and charter cities and counties, that is enacted or takes effect after September 6, 2023, related to covered health facilities, that establishes, requires, imposes, limits, or otherwise relates to wages, salaries, or compensation for covered health care facility employees, as defined in this section, is void.

(3) This subdivision does not preclude any employer, including a city, county, city and county, including charter cities, charter counties, and charter cities and counties, that employs health care employees, from establishing higher wage, salary, or compensation rates for its employees or contracted or subcontracted employees.

(4) This subdivision does not preclude a city, county, city and county, including charter cities, charter counties, and charter cities and counties from establishing a minimum wage that would apply uniformly to all employees across all industries and sectors and not exclusively to employees employed by covered health care facilities.

(5) This subdivision does not preclude a city, county, city and county, including charter cities, charter counties, and charter cities and counties, from establishing or enforcing a minimum wage applicable to covered health care facility employees, as defined in this section, after January 1, 2034. Any such ordinance, regulation, or administrative action shall be evaluated under ordinary preemption principles.

(6) This subdivision does not preclude a city, county, city and county, including charter cities, charter counties, and charter cities and counties, from enacting an ordinance or regulation, or taking administrative action, limiting or otherwise relating to compensation for covered health care facility employees, as defined in this section, after January 1, 2030. Any such ordinance, regulation, or administrative action shall be evaluated under ordinary preemption principles.

(7) This subdivision shall take effect only if subdivision (c) takes effect.

(i) This section shall only take effect when a patient care minimum spending requirement applicable to skilled nursing facilities, as covered in this section, is in effect.

history: (History: Amended by Stats. 2024, Ch. 40, Sec. 28. (SB 159) Effective June 29, 2024.)

chapter: 1. Wages, Hours and Working Conditions

path: 2. EMPLOYMENT REGULATION AND SUPERVISION > 1. Wages, Hours and Working Conditions


text:
Notwithstanding subdivision (c) of Section 1182.14 and subdivision (c) of Section 1182.15, the effective dates of the minimum wage increases required by subparagraph (A) of paragraph (1) of subdivision (c), subparagraph (A) of paragraph (2) of subdivision (c), clause (i) of subparagraph (B) of paragraph (3) of subdivision (c), and subparagraph (A) of paragraph (4) of subdivision (c) of Section 1182.14 and paragraph (1) of subdivision (c) of Section 1182.15 shall be delayed until either subdivision (a) or (b) occur:

(a) (1) If, on or before October 15, 2024, the Director of Finance notifies the Joint Legislative Budget Committee that the Department of Finance has determined that agency cash receipts for the period from July 1, 2024, through September 30, 2024, are at least 3 percent higher than the agency cash receipts projected at the time the 2024 Budget Act was enacted for the July 1, 2024, through September 30, 2024 period, based on current law as of the 2024 Budget Act, the minimum wage increases set forth in subparagraph (A) of paragraph (1) of subdivision (c), subparagraph (A) of paragraph (2) of subdivision (c), clause (i) of subparagraph (B) of paragraph (3) of subdivision (c), and subparagraph (A) of paragraph (4) of subdivision (c) of Section 1182.14 and paragraph (1) of subdivision (c) of Section 1182.15 shall be effective October 15, 2024.

(2) For purposes of this subdivision, “agency cash receipts” means the total amount of the following:

(A) Amounts received under Parts 10, 10.2, and 11 of Division 2 of the Revenue and Taxation Code, that are reported by the Franchise Tax Board to the Department of Finance as total net collections, excluding elective tax payments pursuant to Part 10.4 of Division 2 of the Revenue and Taxation Code, pursuant to law, regulation, procedure, and practice (commonly referred to as the “102 Report”) in effect on the effective date of the act establishing this section.

(B) Sales and use tax net cash receipts, as reported by the California Department of Tax and Fee Administration.

(b) If the State Department of Health Care Services notifies the Joint Legislative Budget Committee that it has initiated the data retrieval required in accordance with subdivision (b) of Section 14169.59 of the Welfare and Institutions Code necessary to implement an increase to hospital quality assurance fee revenues for the program period beginning on January 1, 2025, in accordance with Article 5.230 (commencing with Section 14169.50) of Chapter 7 of Part 3 of Division 9 of the Welfare and Institutions Code, which would fund increases to supplemental Medi-Cal program payments to hospitals that will provide significant new revenues to hospitals and could support hospitals in complying with, and partially mitigate Medi-Cal program costs of, Sections 1182.14 and 1182.15, the minimum wage increases set forth in subparagraph (A) of paragraph (1) of subdivision (c), subparagraph (A) of paragraph (2) of subdivision (c), clause (i) of subparagraph (B) of paragraph (3) of subdivision (c), and subparagraph (A) of paragraph (4) of subdivision (c) of Section 1182.14 and paragraph (1) of subdivision (c) of Section 1182.15 shall be effective the earlier of January 1, 2025, or 15 days after the date of the State Department of Health Care Service’s notification to the Joint Legislative Budget Committee.

history: (History: Added by Stats. 2024, Ch. 40, Sec. 29. (SB 159) Effective June 29, 2024.)

division: 2. EMPLOYMENT REGULATION AND SUPERVISION


citation: LAB § 1183

text:
(a) So far as practicable, the commission, by mail, shall send a copy of the order authorized by Section 1182 to each employer in the occupation or industry in question, and each employer shall post a copy of the order in the building in which employees affected by the order are employed. The commission shall also send a copy of the order to each employer registering his or her name with the commission for that purpose, but failure to mail the order or notice of the order to any employer affected by the order shall not relieve the employer from the duty of complying with the order.

(b) The commission shall prepare a summary of the regulations contained in its orders. The summary shall be printed on the first page of the document containing the full text of the order. The summary shall include a brief description of the following subjects of the orders: minimum wage, hours and days of work, reporting time, pay records, cash shortages and breakage, uniforms and equipment, meals and lodging, meal and rest periods, and seats. The summary shall also include information as to how to contact the field office of the Division of Labor Standards Enforcement, how to obtain a copy of the full text of the order and the statement as to the basis for the order, and any other information the commission deems necessary. The commission, at its discretion, may prepare a separate summary for each order or any combination of orders, or it may incorporate the regulations of all its orders into a single summary.

(c) A finding by the commission that there has been publication of any action taken by the commission as required by Section 1182.1 is conclusive as to the obligation of an employer to comply with the order.

(d) Every employer who is subject to an order of the commission shall post a copy of the order and keep it posted in a conspicuous location frequented by employees during the hours of the workday.

history: (History: Repealed and added by Stats. 1998, Ch. 150, Sec. 4. Effective January 1, 1999.)


citation: LAB § 1184

text: Any action taken by the commission pursuant to Section 1182 shall be effective on the first day of the succeeding January or July and not less than 60 days from the date of publication pursuant to Section 1182.1.

history: (History: Amended by Stats. 1998, Ch. 150, Sec. 5. Effective January 1, 1999.)


citation: LAB § 1185

text: The orders of the commission fixing minimum wages, maximum hours, and standard conditions of labor for all employees, when promulgated in accordance with the provisions of this chapter, shall be valid and operative and such orders are hereby expressly exempted from the provisions of Article 5 (commencing with Section 11346) of Chapter 3.5 of Part 1 of Division 3 of Title 2 of the Government Code.

history: (History: Amended by Stats. 1980, Ch. 676.)


citation: LAB § 1186

text: A person employed in the practice of pharmacy is not exempt from coverage under any provision of the orders of the Industrial Welfare Commission unless he or she individually meets the criteria established for exemption as executive or administrative employees. No person employed in the practice of pharmacy may be subject to any exemption from coverage under the orders of the Industrial Welfare Commission established for professional employees.

history: (History: Added by Stats. 1999, Ch. 190, Sec. 2. Effective January 1, 2000.)


text: Notwithstanding any other provision of law, pharmacists engaged in the practice of pharmacy who are employed in the mercantile industry, as defined by Wage Order 7 of the Industrial Welfare Commission, shall be permitted to adopt alternative workweek schedules allowed by the provisions of Wage Order 4, including the provisions for alternative workweeks that can be adopted by employees working in the health care industry.

history: (History: Added by Stats. 2007, Ch. 480, Sec. 1. Effective January 1, 2008.)


citation: LAB § 1187

text: The findings of fact made by the commission are, in the absence of fraud, conclusive.

history: (History: Enacted by Stats. 1937, Ch. 90.)


citation: LAB § 1188

text: Any person aggrieved directly or indirectly by any final rule or regulation of the commission made under this chapter may apply to the commission for a rehearing in respect to any matters determined or covered therein and specified in the application for rehearing within twenty days after the publication thereof. The application for rehearing shall be verified and shall state fully the grounds upon which the application for rehearing is based. The commission upon considering an application for rehearing may grant the same by order and notice thereof given by mail to the party applying for the rehearing, and fix a time for the rehearing and reconsider its order, rule, or regulation. The commission may redetermine the matter upon the record before it and give notice of its redetermination in the same manner as provided for service of an original order, rule, or regulation. The commission may deny such rehearing upon the record before it, giving notice of its decision by mail to the applicant therefor. Such rehearing is deemed to be denied unless acted upon by the commission within thirty days after being filed.


citation: LAB § 1190

text: Nothing in this chapter shall prevent a review or other action permitted by the Constitution and laws of this State by a court of competent jurisdiction with reference to any order, rule, or regulation of the commission under this chapter.


citation: LAB § 1191

text:
(a) For any occupation in which a minimum wage has been established, the commission may issue to an employee who is mentally or physically disabled, or both, a special license authorizing the employment of the licensee for a period not to exceed one year from date of issue, at a wage less than the legal minimum wage. The commission shall fix a special minimum wage for the licensee. That license may be renewed on a yearly basis. No new licenses may be issued after January 1, 2022. Upon release of the plan, as described in subdivision (c), a license may only be renewed for existing licenseholders who meet the requisite benchmarks in the development plan established in accordance with subdivisions (c) and (d). This subdivision shall remain operative only until January 1, 2025, or until the plan as described in subdivision (c) is released, whichever is later, and as of that date is inoperative.

(b) Commencing January 1, 2025, or when the plan as described in subdivision (c) is released, whichever is later, an employee with a disability shall not be paid less than the legal minimum wage required by Section 1182.12 or the applicable local minimum wage ordinance, whichever is higher.

(c) The State Council on Developmental Disabilities, in consultation with stakeholders and relevant state agencies, as appropriate, including, but not limited to, the Department of Finance, the Labor and Workforce Development Agency, the Department of Rehabilitation, the State Department of Education, and the State Department of Developmental Services, shall develop a multiyear phaseout plan with stakeholder involvement, by January 1, 2023, in accordance with the procedures set forth in subdivision (d), to pay any employee with a disability, by January 1, 2025, no less than the minimum wage otherwise required for an employee under Section 1182.12 or the applicable local minimum wage ordinance, whichever is higher.

(d) The multiyear phaseout plan, as described in subdivision (c) shall include, but not be limited to, all of the following:

(1) Benchmarks and desired outcomes for each year of the plan.

(2) A list of the resources necessary to ensure that employees with disabilities can receive services and support according to their needs and preferences of the individuals and in an integrated setting, regardless of the nature or severity of each individual’s disabilities, including an assessment of the financial investment needed to transition individuals to competitive integrated employment or other services, the development of new rates for new service models or additional rates necessary for competitive integrated employment supports, and suggestions for revenue streams.

(3) A road map for applying to and using all federal funding programs, including, but not limited to, programs available under Medicaid waiver amendments, technical assistance grants under the Office of Disability Employment Policy, and resources under the federal Workforce Innovation and Opportunity Act, to assist individuals with disabilities to obtain competitive, integrated employment.

(4) Data collection and reporting requirements for tracking the following outcomes for the individual employees with disabilities who are transitioned out of subminimum wage employment:

(A) Wages earned.

(B) Hours worked each month.

(C) Type of job.

(D) Length of employment.

(E) Services utilized to obtain competitive integrated employment.

(5) Data collection and reporting requirements that will track the following aggregate outcomes of employees with disabilities who transition out of subminimum wage employment:

(A) Total number of individuals with disabilities who are employed and paid subminimum wage.

(B) Employment rates.

(C) The number of individuals who were participating in a subminimum wage position that are not participating in job search activities.

(D) The number of individuals who move from subminimum wage positions to nonpaying activities.

(E) The number of individuals who move from subminimum wage positions to positions that are paid at or above minimum wage.

(e) In developing the multiyear phaseout plan pursuant to subdivisions (c) and (d), the State Council on Developmental Disabilities shall engage with and seek input from people with developmental disabilities who have experience working for subminimum wage and stakeholder organizations, including, but not limited to, the protection and advocacy agency designated by the Governor in this state to fulfill the requirements and assurances of the federal Developmental Disabilities Assistance and Bill of Rights Act of 2000, other self-advocate and family organizations, provider organizations, including representatives of organizations utilizing the special minimum wage license and those who previously utilized special minimum wage licenses and have successfully transitioned to other employment models, employer and business organizations, and vocational training programs representing those impacted by the changes made to wages for individuals with disabilities.

(f) (1) By January 1, 2023, the State Council on Developmental Disabilities shall release and publicly post a report detailing its multiyear phaseout plan as described in subdivision (c) on its internet website. The State Council on Developmental Disabilities shall also submit a copy of the report on its multiyear phaseout plan to the appropriate policy committees of the Legislature for review on or before January 1, 2023. The report shall include, but not be limited to, all of the following:

(A) Planned benchmarks developed to achieve the outcomes of the plan.

(B) Recommendations for funding levels or other resources necessary to implement the plan.

(C) Outreach and follow up for each employee with a disability who is being paid less than the minimum wage to ensure that the employee’s wages are brought up to the minimum wage. This outreach and followup may include consultation with members of the employee’s hiring or service coordination team, as appropriate.

(2) The requirement for submitting a report imposed under paragraph (1) is inoperative on January 1, 2027, pursuant to Section 10231.5 of the Government Code.

(3) A report to be submitted pursuant to paragraph (2) shall be submitted in compliance with Section 9795 of the Government Code.

(g) (1) The State Council on Developmental Disabilities shall publicly post on its internet website and submit to the Legislature an annual report beginning on January 1, 2024, and continuing for each year of the multiyear phaseout plan, detailing at least, but not limited to, all of the following:

(A) Status updates on the progress made to meet the developed benchmarks.

(B) Recommendations for funding levels or other resources necessary to implement the plan and an accounting of the resources invested in the multiyear phaseout plan to date.

(C) The data collected in accordance with paragraphs (4) and (5) of subdivision (d).

(2) A report to be submitted pursuant to paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.

(h) For purposes of this section, “employee with a disability” means an employee who has a “physical disability” or “mental disability” as defined in Section 12926 of the Government Code.

history: (History: Amended by Stats. 2021, Ch. 339, Sec. 2. (SB 639) Effective January 1, 2022.)


citation: LAB § 1192

text: For any occupation in which a minimum wage has been established, the commission may issue to an apprentice or learner a special license authorizing the employment of such apprentice or learner for the time and under the conditions which the commission determines and at a wage less than the legal minimum wage. The commission shall fix a special wage for such apprentice or learner.


citation: LAB § 1193

text: The commission may fix the maximum number of employees to be employed under the licenses provided for in Sections 1191 and 1192 in any occupation, trade, industry, or establishment in which a minimum wage has been established.

history: (History: Amended by Stats. 1972, Ch. 1122.)


text:
The provisions of this chapter shall be administered and enforced by the division. Any authorized representative of the division shall have authority to:

(a) Investigate and ascertain the wages of all employees, and the hours and working conditions of all employees employed in any occupation in the state;

(b) Supervise the payment of unpaid minimum wages or unpaid overtime compensation owing to any employee under the provisions of this chapter or the orders of the commission. Acceptance of payment of sums found to be due on demand of the division shall constitute a waiver on the part of the employee of his or her cause of action under Section 1194.

Unpaid minimum wages or unpaid overtime wages recovered by the division under the provisions of this section which for any reason cannot be delivered within six months from date of collection to the employee for whom such wages were collected shall be deposited into the Industrial Relations Unpaid Wage Fund in the State Treasury.

history: (History: Amended by Stats. 1980, Ch. 1083.)


text:
(a) The department or division may, with or without the consent of the employee or employees affected, commence and prosecute a civil action to recover unpaid minimum wages or unpaid overtime compensation, including interest thereon, owing to any employee under this chapter or the orders of the commission, and, in addition to these wages, compensation, and interest, shall be awarded reasonable attorney’s fees, and costs of suit. The consent of any employee to the bringing of this action shall constitute a waiver on the part of the employee of his or her cause of action under Section 1194 unless the action is dismissed without prejudice by the department or the division.

(b) The amendments made to this section by Chapter 825 of the Statutes of 1991 shall apply only to civil actions commenced on or after January 1, 1992.

history: (History: Amended by Stats. 1992, Ch. 427, Sec. 119. Effective January 1, 1993.)


citation: LAB § 1194

text:
(a) Notwithstanding any agreement to work for a lesser wage, any employee receiving less than the legal minimum wage or the legal overtime compensation applicable to the employee is entitled to recover in a civil action the unpaid balance of the full amount of this minimum wage or overtime compensation, including interest thereon, reasonable attorney’s fees, and costs of suit.

(b) The amendments made to this section by Chapter 825 of the Statutes of 1991 shall apply only to civil actions commenced on or after January 1, 1992.

history: (History: Amended by Stats. 1992, Ch. 427, Sec. 120. Effective January 1, 1993.)


text:
(a) In any action under Section 98, 1193.6, 1194, or 1197.1 to recover wages because of the payment of a wage less than the minimum wage fixed by an order of the commission or by statute, an employee shall be entitled to recover liquidated damages in an amount equal to the wages unlawfully unpaid and interest thereon. Nothing in this subdivision shall be construed to authorize the recovery of liquidated damages for failure to pay overtime compensation. A suit may be filed for liquidated damages at any time before the expiration of the statute of limitations on an action for wages from which the liquidated damages arise.

(b) Notwithstanding subdivision (a), if the employer demonstrates to the satisfaction of the court or the Labor Commissioner that the act or omission giving rise to the action was in good faith and that the employer had reasonable grounds for believing that the act or omission was not a violation of any provision of the Labor Code relating to minimum wage, or an order of the commission, the court or the Labor Commissioner may, as a matter of discretion, refuse to award liquidated damages or award any amount of liquidated damages not exceeding the amount specified in subdivision (a).

(c) This section applies only to civil actions commenced on or after January 1, 1992.

history: (History: Amended by Stats. 2014, Ch. 211, Sec. 1. (AB 2074) Effective January 1, 2015.)


text: An employee may recover attorney’s fees and costs incurred to enforce a court judgment for unpaid wages due pursuant to this code.

history: (History: Added by Stats. 2011, Ch. 655, Sec. 8. (AB 469) Effective January 1, 2012.)


text: In any case in which a person employing an employee has willfully violated any of the laws, regulations, or orders governing the wages, hours of work, or working conditions of such employee, the division may seek, in a court of competent jurisdiction, and the court may grant, an injunction against any further violations of any such laws, regulations, or orders by such person.


citation: LAB § 1195

text: Any person may register with the Division of Labor Standards Enforcement a complaint that the wage paid to an employee for whom a minimum wage has been fixed by the commission is less than that rate. The division shall investigate the matter and take all proceedings necessary to enforce the payment of a wage not less than the minimum wage.

history: (History: Amended by Stats. 1979, Ch. 373.)


text: The Division of Labor Standards Enforcement shall determine, upon request, whether the wages of employees, which exceed the minimum wages fixed by the commission, have been correctly computed and paid. For this purpose, the division may examine the books, reports, contracts, payrolls and other documents of the employer relative to the employment of employees. The division shall enforce the payment of any sums found, upon examination, to be due and unpaid to the employees.

history: (History: Amended by Stats. 1976, Ch. 1184.)


citation: LAB § 1197

text: The minimum wage for employees fixed by the commission or by any applicable state or local law, is the minimum wage to be paid to employees, and the payment of a lower wage than the minimum so fixed is unlawful. This section does not change the applicability of local minimum wage laws to any entity.

history: (History: Amended by Stats. 2015, Ch. 783, Sec. 2. (AB 970) Effective January 1, 2016.)


text:
(a) Any employer or other person acting either individually or as an officer, agent, or employee of another person, who pays or causes to be paid to any employee a wage less than the minimum fixed by an applicable state or local law, or by an order of the commission, shall be subject to a civil penalty, restitution of wages, liquidated damages payable to the employee, and any applicable penalties imposed pursuant to Section 203 as follows:

(1) For any initial violation that is intentionally committed, one hundred dollars ($100) for each underpaid employee for each pay period for which the employee is underpaid. This amount shall be in addition to an amount sufficient to recover underpaid wages, liquidated damages pursuant to Section 1194.2, and any applicable penalties imposed pursuant to Section 203.

(2) For each subsequent violation for the same specific offense, two hundred fifty dollars ($250) for each underpaid employee for each pay period for which the employee is underpaid regardless of whether the initial violation is intentionally committed. This amount shall be in addition to an amount sufficient to recover underpaid wages, liquidated damages pursuant to Section 1194.2, and any applicable penalties imposed pursuant to Section 203.

(3) Wages, liquidated damages, and any applicable penalties imposed pursuant to Section 203, recovered pursuant to this section shall be paid to the affected employee.

(b) If, upon inspection or investigation, the Labor Commissioner determines that a person has paid or caused to be paid a wage less than the minimum under applicable law, the Labor Commissioner may issue a citation to the person in violation. In addition, if, upon inspection or investigation, the Labor Commissioner determines that an employer has paid or caused to be paid a wage less than the wage set by contract in excess of the applicable minimum wage, the Labor Commissioner may issue a citation to the employer in violation to recover restitution of those amounts owed. The citation may be served personally, in the same manner as provided for service of a summons as described in Chapter 4 (commencing with Section 413.10) of Title 5 of Part 2 of the Code of Civil Procedure, by certified mail with return receipt requested, or by registered mail in accordance with subdivision (c) of Section 11505 of the Government Code. Each citation shall be in writing and shall describe the nature of the violation, including reference to the statutory provision alleged to have been violated, if contract wages are unpaid, or both. The Labor Commissioner shall promptly take all appropriate action, in accordance with this section, to enforce the citation and to recover the civil penalty assessed, wages, liquidated damages, and any applicable penalties imposed pursuant to Section 203 in connection with the citation.

(c) (1) If a person desires to contest a citation or the proposed assessment of a civil penalty, wages, liquidated damages, and any applicable penalties imposed pursuant to Section 203 therefor, the person shall, within 15 business days after service of the citation, notify the office of the Labor Commissioner that appears on the citation of their appeal by a request for an informal hearing. The Labor Commissioner or their deputy or agent shall, within 30 days, hold a hearing at the conclusion of which the citation or proposed assessment of a civil penalty, wages, liquidated damages, and any applicable penalties imposed pursuant to Section 203 shall be affirmed, modified, or dismissed.

(2) The decision of the Labor Commissioner shall consist of a notice of findings, findings, and an order, all of which shall be served on all parties to the hearing within 15 days after the hearing by regular first-class mail at the last known address of the party on file with the Labor Commissioner. Service shall be completed pursuant to Section 1013 of the Code of Civil Procedure. Any amount found due by the Labor Commissioner as a result of a hearing shall become due and payable 45 days after notice of the findings, written findings, and order have been mailed to the party assessed. A writ of mandate may be taken from this finding to the appropriate superior court. The party shall pay any judgment and costs ultimately rendered by the court against the party for the assessment. The writ shall be taken within 45 days of service of the notice of findings, findings, and order thereon.

(3) As a condition to filing a petition for a writ of mandate, the petitioner seeking the writ shall first post a bond with the Labor Commissioner equal to the total amount of any minimum wages, contract wages, liquidated damages, and overtime compensation that are due and owing as determined pursuant to subdivision (b) of Section 558, as specified in the citation being challenged. The bond amount shall not include amounts for penalties. The bond shall be issued by a surety duly authorized to do business in this state, shall be issued in favor of unpaid employees, and shall ensure that the petitioner makes payments as set forth in this paragraph. If a decision is entered which affirms or modifies the amounts for minimum wages, contract wages, liquidated damages, or overtime compensation, the petitioner shall pay the amounts owed for the specified items included in a clerk’s judgment entered under subdivision (f) based on the decision, or pursuant to a court judgment in a writ of mandate proceeding under paragraph (2). If the request for a writ is withdrawn or dismissed without entry of judgment, the petitioner shall pay the amounts owed for the specified items pursuant to the citation, or the administrative decision if a pending writ of mandate is dismissed prior to a court decision, unless the parties have executed a settlement agreement for payment of some other amount. In the case of a settlement agreement, the petitioner shall pay the amount they are obligated to pay under the terms of the settlement.

(4) If the employer fails to pay the amount of minimum wages, contract wages, liquidated damages, or overtime compensation owed within 10 days of the entry of judgment, dismissal or withdrawal of writ, or the execution of a settlement agreement, a portion of the undertaking, described in paragraph (3), equal to the amount owed, or the entire undertaking if the amount owed exceeds the undertaking, shall be forfeited to the Labor Commissioner for appropriate distribution.

(d) A person to whom a citation has been issued shall, in lieu of contesting a citation pursuant to this section, transmit to the office of the Labor Commissioner designated on the citation the amount specified for the violation within 15 business days after issuance of the citation.

(e) When no petition objecting to a citation or the proposed assessment of a civil penalty, wages, liquidated damages, and any applicable penalties imposed pursuant to Section 203 is filed, a certified copy of the citation or proposed civil penalty, wages, liquidated damages, and any applicable penalties imposed pursuant to Section 203 may be filed by the Labor Commissioner in the office of the clerk of the superior court in any county in which the person assessed has or had a place of business. The clerk, immediately upon the filing, shall enter judgment for the state against the person assessed in the amount shown on the citation or proposed assessment of a civil penalty, wages, liquidated damages, and any applicable penalties imposed pursuant to Section 203.

(f) When findings and the order thereon are made affirming or modifying a citation or proposed assessment of a civil penalty, wages, liquidated damages, and any applicable penalties imposed pursuant to Section 203 after hearing, a certified copy of these findings and the order entered thereon may be entered by the Labor Commissioner in the office of the clerk of the superior court in any county in which the person assessed has property or in which the person assessed has or had a place of business. The clerk, immediately upon the filing, shall enter judgment for the state against the person assessed in the amount shown on the certified order.

(g) A judgment entered pursuant to this section shall bear the same rate of interest and shall have the same effect as other judgments and be given the same preference allowed by the law on other judgments rendered for claims for taxes. The clerk shall make no charge for the service provided by this section to be performed by them.

(h) In a jurisdiction where a local entity has the legal authority to issue a citation against an employer for a violation of any applicable local minimum wage law, the Labor Commissioner, pursuant to a request from the local entity, may issue a citation against an employer for a violation of any applicable local minimum wage law if the local entity has not cited the employer for the same violation. If the Labor Commissioner issues a citation, the local entity shall not cite the employer for the same violation.

(i) The civil penalties provided for in this section are in addition to any other penalty provided by law.

(j) This section does not apply to any order of the commission relating to household occupations.

(k) This section does not change the applicability of local minimum wage laws to any entity.

(l) “Contract wages,” as used in this section, means wages based upon an agreement, in excess of the applicable minimum wage, for regular, nonovertime hours.

history: (History: Amended by Stats. 2020, Ch. 370, Sec. 223. (SB 1371) Effective January 1, 2021.)


text:
(a) In addition to any other penalty imposed by law, an employer who willfully fails to pay and has the ability to pay a final court judgment or final order issued by the Labor Commissioner for all wages due to an employee who has been discharged or who has quit within 90 days of the date that the judgment was entered or the order became final is guilty of a misdemeanor. For purposes of this section, “final court judgment or final order” means a court judgment or order as to which the time to appeal has expired and there is no appeal pending. If the total amount of wages due is one thousand dollars ($1,000) or less, upon conviction therefor, the employer shall be fined not less than one thousand dollars ($1,000) nor more than ten thousand dollars ($10,000) or imprisoned in a county jail for not more than six months, for each offense. If the total amount of wages due is more than one thousand dollars ($1,000) upon conviction therefor, the employer shall be fined not less than ten thousand dollars ($10,000) nor more than twenty thousand dollars ($20,000), or imprisoned in a county jail for not less than six months, nor more than one year, or both the fine and imprisonment, for each offense. If there are multiple failures to pay wages involving more than one employee, the total amount of wages due to all employees shall be aggregated together for purposes of determining the level of fine and the term of imprisonment.

(b) As used in this section, “willfully” has the same meaning as provided in Section 7 of the Penal Code.

(c) Nothing in this section precludes prosecution under any other provision of law.

history: (History: Amended by Stats. 2012, Ch. 867, Sec. 13. (SB 1144) Effective January 1, 2013.)


text:
(a) An employer shall not pay any of its employees at wage rates less than the rates paid to employees of another sex for substantially similar work, when viewed as a composite of skill, effort, and responsibility, and performed under similar working conditions, except where the employer demonstrates:

(1) The wage differential is based upon one or more of the following factors:

(A) A seniority system.

(B) A merit system.

(C) A system that measures earnings by quantity or quality of production.

(D) A bona fide factor other than sex, such as education, training, or experience. This factor shall apply only if the employer demonstrates that the factor is not based on or derived from a sex-based differential in compensation, is job related with respect to the position in question, and is consistent with a business necessity. For purposes of this subparagraph, “business necessity” means an overriding legitimate business purpose such that the factor relied upon effectively fulfills the business purpose it is supposed to serve. This defense shall not apply if the employee demonstrates that an alternative business practice exists that would serve the same business purpose without producing the wage differential.

(2) Each factor relied upon is applied reasonably.

(3) The one or more factors relied upon account for the entire wage differential.

(4) Prior salary shall not justify any disparity in compensation. Nothing in this section shall be interpreted to mean that an employer may not make a compensation decision based on a current employee’s existing salary, so long as any wage differential resulting from that compensation decision is justified by one or more of the factors in this subdivision.

(b) An employer shall not pay any of its employees at wage rates less than the rates paid to employees of another race or ethnicity for substantially similar work, when viewed as a composite of skill, effort, and responsibility, and performed under similar working conditions, except where the employer demonstrates:

(1) The wage differential is based upon one or more of the following factors:

(A) A seniority system.

(B) A merit system.

(C) A system that measures earnings by quantity or quality of production.

(D) A bona fide factor other than race or ethnicity, such as education, training, or experience. This factor shall apply only if the employer demonstrates that the factor is not based on or derived from a race- or ethnicity-based differential in compensation, is job related with respect to the position in question, and is consistent with a business necessity. For purposes of this subparagraph, “business necessity” means an overriding legitimate business purpose such that the factor relied upon effectively fulfills the business purpose it is supposed to serve. This defense shall not apply if the employee demonstrates that an alternative business practice exists that would serve the same business purpose without producing the wage differential.

(2) Each factor relied upon is applied reasonably.

(3) The one or more factors relied upon account for the entire wage differential.

(4) Prior salary shall not justify any disparity in compensation. Nothing in this section shall be interpreted to mean that an employer may not make a compensation decision based on a current employee’s existing salary, so long as any wage differential resulting from that compensation decision is justified by one or more of the factors listed in this subdivision.

(c) Any employer who violates subdivision (a) or (b) is liable to the employee affected in the amount of the wages, and interest thereon, of which the employee is deprived by reason of the violation, and an additional equal amount as liquidated damages.

(d) The Division of Labor Standards Enforcement shall administer and enforce this section. If the division finds that an employer has violated this section, it may supervise the payment of wages and interest found to be due and unpaid to employees under subdivision (a) or (b). Acceptance of payment in full made by an employer and approved by the division shall constitute a waiver on the part of the employee of the employee’s cause of action under subdivision (h).

(e) Every employer shall maintain records of the wages and wage rates, job classifications, and other terms and conditions of employment of the persons employed by the employer. All of the records shall be kept on file for a period of three years.

(f) Any employee may file a complaint with the division that the wages paid are less than the wages to which the employee is entitled under subdivision (a) or (b) or that the employer is in violation of subdivision (k). The complaint shall be investigated as provided in subdivision (b) of Section 98.7. The division shall keep confidential the name of any employee who submits to the division a complaint regarding an alleged violation of subdivision (a), (b), or (k) until the division establishes the validity of the complaint, unless the division must abridge confidentiality to investigate the complaint. The name of the complaining employee shall remain confidential if the complaint is withdrawn before the confidentiality is abridged by the division. The division shall take all proceedings necessary to enforce the payment of any sums found to be due and unpaid to these employees.

(g) The department or division may commence and prosecute, unless otherwise requested by the employee or affected group of employees, a civil action on behalf of the employee and on behalf of a similarly affected group of employees to recover unpaid wages and liquidated damages under subdivision (a) or (b), and in addition shall be entitled to recover costs of suit. The consent of any employee to the bringing of any action shall constitute a waiver on the part of the employee of the employee’s cause of action under subdivision (h) unless the action is dismissed without prejudice by the department or the division, except that the employee may intervene in the suit or may initiate independent action if the suit has not been determined within 180 days from the date of the filing of the complaint.

(h) An employee receiving less than the wage to which the employee is entitled under this section may recover in a civil action the balance of the wages, including interest thereon, and an equal amount as liquidated damages, together with the costs of the suit and reasonable attorney’s fees, notwithstanding any agreement to work for a lesser wage.

(i) (1) A civil action to recover wages under subdivision (a) or (b) may be commenced no later than three years after the last date the cause of action occurs.

(2) An employee is entitled to obtain relief for the entire period of time in which a violation of subdivision (a) or (b) exists, but not to exceed six years.

(3) For purposes of this subdivision, a cause of action occurs when any of the following occur:

(A) An alleged unlawful compensation decision or other practice is adopted.

(B) An individual becomes subject to an alleged unlawful compensation decision or other practice.

(C) When an individual is affected by application of an alleged unlawful compensation decision or other practice, including each time wages, benefits, or other compensation is paid, resulting in whole or in part from the decision or other practice.

(4) Nothing in this subdivision shall prohibit the application of the doctrine of “continuing violation” or the “discovery rule” to any appropriate claim.

(j) If an employee recovers amounts due to the employee under subdivision (c), and also files a complaint or brings an action under subdivision (d) of Section 206 of Title 29 of the United States Code which results in an additional recovery under federal law for the same violation, the employee shall return to the employer the amounts recovered under subdivision (c), or the amounts recovered under federal law, whichever is less.

(k) (1) An employer shall not discharge, or in any manner discriminate or retaliate against, any employee by reason of any action taken by the employee to invoke or assist in any manner the enforcement of this section. If an employer engages in any action prohibited by this section within 90 days of the protected activity specified in this section, there shall be a rebuttable presumption in favor of the employee’s claim. An employer shall not prohibit an employee from disclosing the employee’s own wages, discussing the wages of others, inquiring about another employee’s wages, or aiding or encouraging any other employee to exercise their rights under this section. Nothing in this section creates an obligation to disclose wages.

(2) Any employee who has been discharged, discriminated or retaliated against, in the terms and conditions of their employment because the employee engaged in any conduct delineated in this section may recover in a civil action reinstatement and reimbursement for lost wages and work benefits caused by the acts of the employer, including interest thereon, as well as appropriate equitable relief.

(3) A civil action brought under this subdivision may be commenced no later than one year after the cause of action occurs.

(l) As used in this section:

(1) “Employer” includes public and private employers. Section 1199.5 does not apply to a public employer.

(2) “Sex” has the same meaning as defined in Section 12926 of the Government Code.

(3) “Wages” and “wage rates” include all forms of pay, including, but not limited to, salary, overtime pay, bonuses, stock, stock options, profit sharing and bonus plans, life insurance, vacation and holiday pay, cleaning or gasoline allowances, hotel accommodations, reimbursement for travel expenses, and benefits. Nothing in this paragraph shall be construed to define “wages” or “wage rates” for purposes of any other section of this code.

history: (History: Amended by Stats. 2025, Ch. 468, Sec. 2. (SB 642) Effective January 1, 2026.)


citation: LAB § 1198

text: The maximum hours of work and the standard conditions of labor fixed by the commission shall be the maximum hours of work and the standard conditions of labor for employees. The employment of any employee for longer hours than those fixed by the order or under conditions of labor prohibited by the order is unlawful.

history: (History: Amended by Stats. 1973, Ch. 1007.)


text:
(a) The Chief of the Division of Labor Standards Enforcement may, when in his or her judgment hardship will result, exempt any employer or employees from any mandatory day or days off requirement contained in any order of the commission. Any exemption granted by the chief pursuant to this section shall be only of sufficient duration to permit the employer or employees to comply with the requirements contained in the order of the commission, but not more than one year. The exemption may be renewed by the chief only after he or she has investigated and is satisfied that a good faith effort is being made to comply with the order of the commission.

(b) No employer shall discharge or in any other manner discriminate against any employee who refuses to work hours in excess of those permitted by the order of the commission.

history: (History: Amended by Stats. 1985, Ch. 620, Sec. 1.)


text: Upon request, the Chief of the Division of Labor Standards Enforcement shall make available to the public any enforcement policy statements or interpretations of orders of the Industrial Welfare Commission. Copies of such policy statements shall be furnished to the Industrial Welfare Commission.

history: (History: Added by Stats. 1980, Ch. 1083.)