Title
a. Amend the FY 2024-25 Health Department Adopted Budget Unit 4000-8410-Fund 023-Appropriations Unit HEA012; and Budget Units 4000-8591, 8592-Fund 001 Appropriations Unit HEA007 to reallocate positions and transfer employees as necessary to the newly created SB 525 specific classifications as indicated in Attachment A effective January 1, 2025;
b. Amend the FY 2024-25 Natividad Medical Center Adopted Budget Units 9600- 8307, 8334, 8344, 8346, 8348, 8347, 8352, 8354, 8355, 8360, 8363, 8365, 8366, 8369, 8382, 8383, 8393, 8459, 8527-Fund 451-Appropriations Unit NMC001 to reallocate positions and transfer employees as necessary to the newly created SB 525 specific classifications as indicated in Attachment A effective January 1, 2025;
c. Authorize the Human Resources Department to take additional action(s) as necessary to implement and comply with SB 525;
d. 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 the FY 2024-25 Health Department Adopted Budget Unit 4000-8410-Fund 023-Appropriations Unit HEA012; and Budget Units 4000-8591, 8592-Fund 001 Appropriations Unit HEA007 to reallocate positions and transfer employees as necessary to the newly created SB 525 specific classifications as indicated in Attachment A effective January 1, 2025;
b. Amend the FY 2024-25 Natividad Medical Center Adopted Budget Units 9600- 8307, 8334, 8344, 8346, 8348, 8347, 8352, 8354, 8355, 8360, 8363, 8365, 8366, 8369, 8382, 8383, 8393, 8459, 8527-Fund 451-Appropriations Unit NMC001 to reallocate positions and transfer employees as necessary to the newly created SB 525 specific classifications as indicated in Attachment A effective January 1, 2025;
c. Authorize the Human Resources Department to take additional action(s) as necessary to implement and comply with SB 525;
d. 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 health care 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 health care workers employed by covered health care facilities, as defined.
On December 3, 2024, your Board approved the creation of SB 525 specific classifications and increase in base wage salary ranges for impacted classifications to comply with SB 525. With the creation of the new classifications the positions the impacted employees are currently occupying will need to be reallocated in order to transfer the employees into the new classifications with the appropriate salary ranges. The action to transfer the employees to the new SB 525 specific classifications will have a neutral effect on the employee (i.e. no start of new probationary period, no change in salary step, no change in step advancement date, no loss of seniority in class, etc.)”.
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 health care 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 financing was included in the original Board report approved by the Board on December 3, 2024, and is included again here for reference.
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 work force 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: Dr. Charles Harris, Hospital Chief Executive Officer
Elsa Jimenez, Director Health Services