Bay Area Minimum Wages on the Rise: 2016 Increases to California and Local Minimum Wages

By lfsuser on January 06, 2016

Effective January 1, 2016 California minimum wage increased to $10 per hour. In addition, many California cities have enacted ordinances that increase minimum wage requirements for local employers. Typically, for an employer to be covered by a local ordinance, its employee must perform at least 2 hours of work per week within a city’s geographic limit.

The following is a non-exclusive list of the various local ordinances that require a minimum wage above what is required by California law.

  • Berkeley’s current minimum wage is $11.00 per hour; it will increase to $12.53 per hour effective October 1, 2016.
  • Emeryville’s minimum wage was set at $14.44 per hour for businesses with 56 or more employees; $12.75 per hour for businesses with 55 employees or less employees, effective July, 2015. Effective July 1, 2016 the minimum wage will increase to $13 per hour for employers of 55 or less employees; employers of 56 or more employees will be required to pay a minimum wage which is tied to the CPI and is currently estimated to be $14.82 per hour.
  • Mountain View’s minimum wage increased to $11 per hour effective January 1, 2016.
  • Oakland’s minimum wage increased to $12.55 per hour effective January 1, 2016.
  • Palo Alto’s minimum wage increased to $11 per hour effective January 1, 2016.
  • San Francisco’s current minimum wage is $12.25 per hour; it will increase to $13 per hour effective July 1, 2016.
  • San Jose’s minimum wage remains $10.30 per hour in 2016.
  • Santa Clara’s minimum wage increased to $11 per hour effective January 1, 2016.
  • Sunnyvale’s current minimum wage is $10.30 per hour; it will increase to $11 per hour effective July 1, 2016.

Employers should review their compensation practices to confirm that they are complying with state, federal and local minimum wage laws. Moreover, local ordinances typically require employers to post notices advising their employees of the applicable local minimum wage, among other things. A copy of the applicable notice may be secured from a city’s website.

This communication may be considered advertising in some jurisdictions. It is intended to provide general information about legal developments and is not legal advice. If you have questions about the contents of this alert, please contact Oleg I. Albert at (415) 697-2000 or oalbert@aghwlaw.com.