Member Article

Local Minimum Wage Increases

Several California cities and counties have passed their own minimum wage ordinances with a more aggressive schedule of minimum wage increases. Local minimum wage increases that go into effect on July 1, 2018 include the following:

City of Belmont Minimum Wage Ordinance

Last November, the City of Belmont passed a new minimum wage ordinance to increase gradually Belmont's minimum hourly wage rate to $15.00 by 2020.  Beginning on July 1, 2018, employers who are subject to the Belmont Business License Tax or who maintain a facility in Belmont, must pay each employee who performs at least two hours of work per week in Belmont, a minimum wage of not less than $12.50 an hour.  Employers also must give written notice to current and new employees of their rights under the ordinance, post the Belmont Minimum Wage Official Notice, and provide employees (at the time of hire) with the employer's name, address, and telephone number in writing.

San Francisco's Parity In Pay Ordinance

Additionally, on July 1, 2018, San Francisco's Consideration of Salary History ("Parity in Pay") ordinance takes effect. Like the new California law (Labor Code §432.3), this ordinance bans San Francisco employers from considering the current or past salary of an applicant in determining whether to hire the applicant or what salary to offer the applicant.  The ordinance also prohibits employers from:

(1) asking applicants about their current or past salary, or

(2) disclosing a current or former employee's salary history to a prospective employer without that employee's written authorization, unless the salary history is publicly available, required by law, or subject to a collective bargaining agreement. 

The ordinance, however, allows employers to consider salary history if the employee voluntarily and without prompting discloses it. The ordinance also allows employers to "engage in discussion" concerning the applicant's "expectations" about salary, including unvested equity, deferred compensation, or bonus that an applicant would forfeit or have canceled by virtue of the applicant's resignation from their current employer.

Employer Takeaway

Employers with employees working in any of these cities – even if only on a temporary basis – should review their minimum wage practices and implement any necessary changes for compliance purposes, including recordkeeping and notice requirements. Additionally, employers should ensure that hiring managers are trained to refrain from asking about applicants'  salary history. If you have any questions, please contact your Hanson Bridgett attorney.