Several California Cities Increase Minimum Wage Rates Effective January 1, 2015

San Francisco Minimum Wage & Paid Sick Leave Poster

Effective January 1, 2015, several California cities will have a minimum wage rate that exceeds the current statewide minimum wage rate of $9.00 per hour. Currently, San Francisco, CA’s minimum wage rate is tied to increases in the Consumer Price Index (CPI). Based on an increase in the CPI last year, San Francisco’s minimum wage rate will increase to $11.05 per hour effective January 1, 2015. In addition, a San Francisco voter-approved increase to $12.25 per hour will take effect on May 1, 2015.

The City of San Jose, CA’s minimum wage rate is also tied to the CPI. Based on the CPI, the City of San Jose will also implement an increase in the minimum wage rate to $10.30 per hour effective January 1, 2015.

Richmond, CA has also established a minimum wage rate based a recently passed ordinance. The ordinance sets the Richmond minimum wage rate at $9.60 per hour effective January 1, 2015. Starting January 1, 2016, and each year afterward, the minimum wage will increase a fixed amount until 2019 when it will increase based on the CPI.

Under these laws, all employers, regardless of where they are located, must pay to all employees that work for the employer at least two hours per week the minimum wage rate for each hour worked within city boundaries. In addition, every employer must post the city’s Minimum Wage notice in a conspicuous place at any workplace or job site where a covered employee works.

Employers can order municipal Minimum Wage posters using the following links:

Minimum wage ordinances will also go into effect in 2015 for the cities of San Diego, CA and Oakland, CA. The January 1, 2015 minimum wage rate for San Diego is $9.75 per hour with fixed increases scheduled for subsequent years before being tied to the CPI in 2019. San Diego’s Ordinance also grants employees up to five paid sick days annually. Oakland’s minimum wage rate is set for $12.25 per hour starting on March 2, 2015. Both ordinances will require employers to post a notice of employees’ rights that will be available next year.