Title
Adopt a Resolution to:
a. Amend Personnel Policies and Practices Resolution No. 98-394 Appendix A and B to create the classifications of Courier-SB 525, Custodian-SB 525, Senior Custodian-SB 525, Groundskeeper-SB 525, Senior Groundskeeper-SB 525, Grounds Supervisor-SB 525, Office Assistant I-SB 525, Office Assistant II-SB 525, Office Assistant III-SB 525, Principal Office Assistant-SB 525, Supervising Office Assistant I-SB 525, Supervising Office Assistant II-SB 525, Storekeeper-SB 525, Senior Storekeeper-SB 525, Supervising Storekeeper-SB 525, and Student Intern-SB25 to comply with California Senate Bill No. 525, increasing the minimum wage in specified health care facilities to $21.00 per hour at first step effective January 1, 2025 as indicated in Attachment A;
b. Amend Personnel Policies and Practices Resolution No. 98-394 Appendix A to adjust the base wage salary ranges of the Behavioral Health Aide and Cashier to comply with California Senate Bill No. 525, increasing the minimum wage in specified health care facilities to $21.00 per hour at first step effective January 1, 2025, as indicated in Attachment A;
c. Amend Personnel Policies and Practices Resolution No. 98-394 Appendix A & B to abolish the classification of Food Service Worker I; retitle the Food Service Worker II to Food Service Worker and adjust the base wage salary range to comply with California Senate Bill No. 525, increasing the minimum wage in specified health care facilities to $21.00 per hour at first step effective January 1, 2025, as indicated in Attachment A;
d. Amend the FY 2024-25 Natividad Medical Center Adopted Budget (Fund 451-Dept. 9600-Unit 8355-Appropriation Unit NMC001) to reallocate one (1) Data Entry Operator II position to one (1) Office Assistant II position as indicated in Attachment A effective January 1, 2025; and,
e. Direct the County Administrative Office and the Auditor-Controller to incorporate the approved position changes into the Fiscal Year 2024-25 Adopted Budget and the Human Resources Department to implement the changes in the Advantage HRM System.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors adopt a Resolution to:
a. Amend Personnel Policies and Practices Resolution No. 98-394 Appendix A and B to create the classifications of Courier-SB 525, Custodian-SB 525, Senior Custodian-SB 525, Groundskeeper-SB 525, Senior Groundskeeper-SB 525, Grounds Supervisor-SB 525, Office Assistant I-SB 525, Office Assistant II-SB 525, Office Assistant III-SB 525, Principal Office Assistant-SB 525, Supervising Office Assistant I-SB 525, Supervising Office Assistant II-SB 525, Storekeeper-SB 525, Senior Storekeeper-SB 525, Supervising Storekeeper-SB 525, and Student Intern-SB25 to comply with California Senate Bill No. 525, increasing the minimum wage in specified health care facilities to $21.00 per hour at first step effective January 1, 2025 as indicated in Attachment A;
b. Amend Personnel Policies and Practices Resolution No. 98-394 Appendix A to adjust the base wage salary ranges of the Behavioral Health Aide and Cashier to comply with California Senate Bill No. 525, increasing the minimum wage in specified health care facilities to $21.00 per hour at first step effective January 1, 2025, as indicated in Attachment A;
c. Amend Personnel Policies and Practices Resolution No. 98-394 Appendix A & B to abolish the classification of Food Service Worker I; retitle the Food Service Worker II to Food Service Worker and adjust the base wage salary range to comply with California Senate Bill No. 525, increasing the minimum wage in specified health care facilities to $21.00 per hour at first step effective January 1, 2025, as indicated in Attachment A;
d. Amend the FY 2024-25 Natividad Medical Center Adopted Budget (Fund 451-Dept. 9600-Unit 8355-Appropriation Unit NMC001) to reallocate one (1) Data Entry Operator II position to one (1) Office Assistant II position as indicated in Attachment A effective January 1, 2025; and,
e. Direct the County Administrative Office and the Auditor-Controller to incorporate the approved position changes into the Fiscal Year 2024-25 Adopted Budget and the Human Resources Department to implement the changes in the Advantage HRM System.
SUMMARY/DISCUSSION:
On October 13, 2023, Senate Bill No. 525 (SB 525) was signed into law and subsequently amended by Senate Bill 828 (SB 828) and Senate Bill 159 (SB 159). SB 525 aims to improve the economic conditions of healthcare employees in California. By establishing elevated minimum wage schedules for a broad spectrum of jobs, this legislation recognizes the importance, criticality, and existing shortage of those who serve and support residents' and visitors' healthcare needs. The Bill in part enacts a phased in multi-tiered statewide minimum wage schedule for healthcare workers employed by covered healthcare facilities, as defined.
This law applies to employees who provide patient care, health care services, or services supporting the provision of health care. For the County of Monterey, SB 525 applies to Natividad Medical Center (NMC) under the “Safety Net Hospitals” category, and the Health Department’s Behavioral Health, Children’s Medical Services and Clinics fall under the “Covered Health Care Facilities run by Medium Sized Counties (250,000 to five million people as of 1/1/23)” category.
The following details the health care minimum wage schedules for NMC and impacted units in the Health Department:
NATIVIDAD
• Safety Net Hospitals
Ø 10/16/24 to 6/30/25: $18
Ø 6/1/25 to 6/30/33: increases 3.5% each year
Ø 7/1/33 to 12/31/34: $25
Ø 1/1/35: adjusted for inflation each year
HEALTH
• Covered Health Care Facilities run by Medium Sized Counties (250,000 to five million people as of 1/1/23)
Ø 1/1/25 to 6/30/26: $21
Ø 7/1/26 to 6/30/28: $23
Ø 7/1/28 to 12/31/29: $25
Ø 1/1/30: adjusted for inflation each year
SB 525 went into effect for Natividad on October 16, 2024, with the health care minimum wage for Safety Net Hospitals beginning at $18 per hour. There was no required action to be taken at that time as there are no classifications at Natividad below $18 per hour at first step. SB 525 goes into effect January 1, 2025, for the impacted units at the Health Department where the hourly minimum wage begins at $21 per hour. Local hospitals Community Hospital of the Monterey Peninsula (CHOMP) and Salinas Valley Memorial Hospital (SVMH) new health care minimum wage began at $21 per hour effective October 16, 2024, and increases similar to the Health Department impacted units at $23 per hour on July 1, 2026, and $25 per hour July 1, 2028, and adjusts for inflation each year beginning January 1, 2030.
As NMC is on a separate SB 525 health care minimum wage schedule with lower base wage rates than the Health Department and local hospitals it is critical that Natividad remain competitive in the local job market and recruit and retain qualified employees. It is recommended to increase the base wages for impacted classifications at NMC on the same timeline as the Health Department and local hospitals CHOMP and SVMH beginning January 1, 2025.
Currently, the first-step base wage rates of ten (10) County classifications that are allocated/utilized by NMC and impacted units in the Health Department fall below the $21 per hour health care minimum wage effective January 1, 2025:
|
Class Code |
|
Classification |
|
50U16 |
|
Behavioral Health Aide |
|
80J19 |
|
Cashier |
|
70F21 |
|
Courier |
|
70A21 |
|
Custodian |
|
80G21 |
|
Data Entry Operator II |
|
70K21 |
|
Food Service Worker II |
|
70C21 |
|
Groundskeeper |
|
80E01 |
|
Office Assistant I |
|
70F23 |
|
Storekeeper |
|
90A01 |
|
Student Intern |
As the Courier, Custodian, Groundskeeper, Office Assistant I, Storekeeper, and Student Intern classifications/series are utilized in other County departments and are not covered under SB 525 it is necessary to create SB 525 specific classifications as there cannot be classifications with two separate salary ranges. It is recommended to create SB 525 specific classifications for these with the salary ranges set to $21.00 per hour at first step and to maintain the spreads within the series as applicable effective January 1, 2025. It is also recommended to adjust the salary ranges of the Behavioral Health Aide and Cashier to $21.00 per hour at first step.
During the implementation analysis it was determined the Food Service Worker I classification at NMC had not been used in some time and no longer meets the needs of the County and is recommended to be abolished; the Food Service Worker II retitled to Food Service Worker and the salary range adjusted to $21.00 per hour at first step. In addition, a review of the duties performed by the vacant Data Entry Operator II position at NMC concluded they are more appropriately classified as an Office Assistant II and is recommended to be reallocated as such.
It is therefore recommended the Board of Supervisors consider approving the recommended actions to ensure compliance with the new SB 525 State minimum wage law for healthcare workers.
OTHER AGENCY INVOLVEMENT:
The County Administrative Office, County Counsel, Human Resources Department, Health Department, and Natividad worked collaboratively to identify the impact of the legislative wage adjustments and concur with the recommendations.
FINANCING:
The salary and benefits increase for Health Department Budget Unit 8410-Fund 023-Appropriations Unit HEA012 for the remainder of FY 2024-25 is approximately $90,838 or $168,147 annually and will be absorbed within the department’s existing appropriations.
The salary and benefits increase for Natividad for the remainder of Fiscal Year 2024-25 is approximately $31,060 and then $73,414 annually thereafter. The funding for personnel costs is provided by Natividad Medical Center’s enterprise fund comprised of patient services revenues received from commercial insurance, state, and federal government agencies. Funding will be provided from NMC’s Enterprise Fund 451-9600-6111.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
The recommended action addresses the Board of Supervisors Administration Strategic Initiative and demonstrates the County’s commitment to meeting the Board’s initiatives by attracting, recruiting, and retaining a diverse, talented workforce that supports the mission of Monterey County.
__ Economic Development
X Administration
__ Health & Human Services
__ Infrastructure
__ Public Safety
Prepared By: Kim Moore, Assistant Director of Human Resources, 755-5353
Approved By: Andreas Pyper, Director of Human Resources, 755-5043
Attachment: Attachment A
Resolution
Cc: Rupa Shah, Auditor-Controller
Dr. Charles Harris, Hospital Chief Executive Officer
Elsa Jimenez, Director Health Services