California employers in the health care industry should prepare for increased scrutiny of executive compensation as a new statewide initiative heads toward the November 3, 2026, General Election ballot.

The California Secretary of State announced that Initiative 1985, formally titled “Limits Compensation for Health Care Executives, Managers, and Administrators. Initiative Statute,” became eligible for the

Senate Bill (SB) 596 represents asignificant development for California general acute care hospitals, acute psychiatric hospitals, and special hospitals. Governor Newsom signed SB 596 into law on October 13, 2025, amending California’s Health and Safety Code § 1280.3 to expand civil penalties for certain licensed health facilities that fail to maintain mandated staffing ratios.

While

Employers in the healthcare industry in California are subject to a separate minimum wage from other employers.

Effective July 1, 2025, certain healthcare facilities will see an increase in their minimum wage rates. The following is a summary of the increases based on the type of employer.

Type of Healthcare EmployerCurrent RateIncreased

For an employee to be exempt from overtime under California law, their job must fall into a specific exempt category.

The most common exemptions are for executive, administrative, and professional roles. Employees in these capacities generally qualify if their work meets detailed requirements and they earn at least twice the state minimum wage for full-time

In 2022, the City of Inglewood passed a healthcare worker minimum wage ordinance. The new $25.00 minimum wage applies to private-sector healthcare employees who work in hospitals, integrated health systems, and dialysis clinics in Inglewood.

The new minimum wage applied to clinicians, nurses, certified nursing assistants, aides, technicians, maintenance workers, janitorial or housekeeping staff

The COVID-19 State of Emergency for California ended on February 28, 2023. In its wake, the California Department of Public Health (CDPH) has announced impending updates to its remaining COVID-19 mandates, including those applicable to healthcare workers.

On March 3, 2023, the CDPH announced it would end vaccination requirements for healthcare workers, including those in