Who is covered by the San Francisco, CA Minimum Compensation Ordinance?
The San Francisco Minimum Compensation Ordinance (MCO) covers most City service contractors as well as tenants at the San Francisco International Airport.
- Contractors are covered if they employ 5 or more employees (includes employees of any parent, subsidiary company or subcontractor)
- The MCO applies to contracts for services of $25,000 or more
- The MCO does not apply to the purchase of goods, or for guarantees, warranties, shipping, delivery, or initial installation of such goods.
What does the law require?
The law generally requires covered employers to provide to their covered employees:
- No less than the MCO hourly wage in effect;
- 12 paid days off per year (or cash equivalent); and
- 10 days off without pay per year.
- The hourly wage rate to be paid differs depending on whether the employee working on the City service contract is employed by a for-profit, non-profit or public entity employer.
- The MCO hourly rate adjusts on July 1 of each year if the Consumer Price Index increases.
- The MCO compensation rate and time-off provisions applies to San Francisco contracts and regardless of where the work is performed in the United States.
Who must post the San Francisco Minimum Compensation Ordinance Poster?
Covered contractors are required to post the San Francisco Minimum Compensation Ordinance Poster in a conspicuous place at each job site where a covered employee works. When the MCO hourly wage rate changes, the contractor must post the updated San Francisco Minimum Compensation Ordinance Poster. Contractors must post this notice in English, Spanish, Chinese, Filipino, and any language spoken by at least five percent of the employees at the workplace or job site. Contractors must also provide the MCO Know Your Rights form to all covered employees and obtain their signature acknowledging receipt of the form. Contractors must maintain copies signed by their employees.