UPDATE

March 26, 2024 -  REPEALING CHAPTER 13 (HEALTHCARE WORKERS MINIMUM WAGE ORDINANCE)

On March 26, 2024 - The City Council repealed the Healthcare Workers Minimum Wage Ordinance. 

SB 525 imposes a state-wide minimum wage structure for healthcare workers and covers virtually all health care facilities in the state. By its own language, and without anything more, SB 525 rendered void all local ordinances to the same effect that were enacted or took effect after September 6, 2023. While originally enacted and scheduled to take effect before this date, Downey’s Healthcare Workers Minimum Wage Ordinance never took effect because of the referendum petition. The Ordinance’s effectiveness remains suspended. Moreover, the Ordinance has now become void as a result of SB 525.

Additionally,  the City Clerk received a request for withdrawal of the initiative Ordinance signed by the Ordinance’s original proponent. The City Clerk also received a notice of withdrawal of the referendum petition signed by the petition’s original proponent. Under the Elections Code, these withdrawals were effective upon receipt by the City. 

PREVIOUS UPDATES

October 13, 2023 - Governor Newsom signed Senate Bill 525. 

Under the bill, workers at healthcare facilities having 10,000 or more full-time employees, individually or as part of an integrated network, would earn $23 per hour starting next year, $24 in 2025, and $25 in 2026.  This applies to all staff, including medical professionals, janitors, housekeeping staff, groundskeepers, guards, clerical workers, nonmanagerial administrative workers, food service workers, gift shop workers, technical and ancillary services workers, medical coding and medical billing personnel, schedulers, call center and warehouse workers, and laundry workers. 

 Heath care employees at rural facilities and those that serve high rates of Medicare and Medi-Cal patients will receive $18 per hour next year, with 3.5% annual increases peaking at $25 per hour in 2033.   

 For all smaller and other healthcare facility employers, including hospitals, skilled nursing facilities, ambulatory surgical centers, urgent care clinics, medical groups, medical foundations, county mental health facilities, and county correctional health facilities, workers will earn $21 per hour next year and reach $25 in 2028. 

The City is currently reviewing the details of the SB 525 and its impacts on the City's Local Healthcare Minimum Wage Ordinance. 

September 27, 2022 - The City Council approved to submit Ordinance No. 22-1485 (Setting a Minimum Wage of $25.000 Per Hour for Qualifying Healthcare Workers Working in the City of Downey) to Downey voters at the next regular municipal election (November 5, 2024).  

September 14, 2022 -   According to the LA County County Registrar -Recorder the referendum petition has obtained the required number of signatures and this issue will be before the city Council at its September 27 meeting.

August 10, 2022 - a referendum petition has been filed with the City of Downey. Pursuant to state law, upon submittal of the referendum petition to the City, the Ordinance is now automatically stayed and it will not go into effect.  Once the appropriate steps have been taken to the verify the referendum petition, the Downey City Council will make a decision at a future date to either submit the ordinance to the Downey voters or to repeal the ordinance.    If the Ordinance is placed on the ballot and approved by a majority of the voters, it will go into effect ten (10) days after the election is certified.

This update is to advise the public that under the law, the ordinance will not take effect due to a referendum and businesses are not required to pay the Healthcare Worker Minimum Wage until further notice.  

On July 12, 2022 the Downey City Council approved to establish a citywide healthcare workers minimum wage ordinance. For questions, visit the FAQ section below (coming soon) or email hcwage@downeyca.org.

Payment of Healthcare Worker Minimum Wage Rate

The Ordinance creates a healthcare workers minimum wage of $25.00 per hour starting on August 11, 2022. Starting on January 1, 2024, the healthcare worker minimum wage for privately-owned healthcare facilities will be increased each January 1 by the Annual Consumer Price Index (CPI-W) Adjustment. 

Legal Notices

Every Privately-Owned healthcare facility in the boundaries of Downey shall post in a conspicuous place at any workplace or job site where any employee works, the bulletin published each year by the City informing qualifying healthcare workers of the current minimum wage rate and of their rights under the Ordinance.

August 11, 2022 -December 31, 2023 Minimum Wage Notice

One-Year Court-Granted Waiver

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