California – Bay Area Minimum Wage Rates Slowly Rising to $15 Challenge

Each of the Bay Area communities listed below has a passed law that hastens implementation of California’s statewide minimum wage rate targets. California’s Minimum Wage Law establishes a series of annual minimum wage rate increases that will require employers to pay employees at least $15.00 per hour by January 1, 2023. Bay Area cities will achieve the $15.00-per-hour minimum wage target much sooner. After 2023, both city and state wage rates will be indexed to inflation.

City of San Francisco

Since 2004, San Francisco, California has had a Minimum Wage Law in effect. Initially, the minimum wage rate was tied to the regional rate of inflation and adjusted upward most years. However, in 2014, voters elected to raise the minimum wage rate even higher over the next four years. This July, the city’s minimum wage rate is $14.00 per hour. The minimum wage rate will reach $15.00 per hour on July 1, 2018. In subsequent years, the minimum wage rate will be adjusted for increases in the cost of living.

All employers with employees who work within geographic boundaries of the City of San Francisco are required to post the city’s annual Minimum Wage notice. The notice must be posted in English, Spanish, Chinese and any other language spoken by at least 5% of employees at the job site.

City of San Jose

Since 2013, San Jose, California has had a minimum wage rate that was projected to keep pace with inflation. However, in 2016 the city approved a plan accelerating the minimum wage rate even faster. As a consequence, San Jose employers are facing a minimum wage increase for the second time this year. In January, the minimum wage rate was increased to $10.50 per hour. On July 1, 2017, the minimum wage rate will increase to $12.00 per hour. The city will achieve a $15.00-per-hour minimum wage rate by 2019, with future minimum wage increases tied to increases in the cost of living.

Employers with a San Jose business license or a facility in San Jose are required to post in the workplace the city’s official Minimum Wage bulletin. It must be posted in any language spoken by at least 5% of the employees at the worksite.

City of Milpitas

The City of Milpitas’ Minimum Wage Law goes into effect on July 1, 2017. The minimum wage rate is $11.00 per hour. The initial minimum wage rate is the first of three scheduled raises reaching $15.00 per hour in 2019. Beginning July 1, 2020, the minimum wage rate will be adjusted for inflation based on the Consumer Price Index.

Milpitas employers are required to post the city’s Minimum Wage notice in the top three languages spoken in the city. Our 2017 Milpitas poster has been created in a multi-language format consisting of English, Vietnamese and Chinese. The next poster update will correspond with the next minimum wage increase scheduled for January 1, 2018.

City of Emeryville

In 2015, the City of Emeryville established two minimum wage rates, one for small businesses (55 or fewer employees who work in the city) and one for large businesses (56 or more employees who work in the city). For small businesses, the minimum wage rate in effect on July 1, 2017 is $14.00 per hour. Small businesses will begin paying $15.00 per hour next year. The minimum wage rate of $15.20 per hour applies to large businesses this year. Beginning in 2019, minimum wage rate will be indexed to inflation.

Emeryville employers must post the city’s current minimum wage notices in all languages spoken by 10% or more of the workplace’s employees.

City of San Leandro

San Leandro’s Minimum Wage Ordinance goes into effect on July 1, 2017. It fixes the first minimum wage rate at $12.00 per hour and incrementally increases it over the next four years until July 1, 2020 when the minimum wage rate will reach $15.00 per hour. Future increases have not been established.

All San Leandro employers must post the city’s current minimum wage notices in the top five languages spoken by residents of the City.