San Francisco Seeks to Amend Minimum Wage Ordinance

Two San Francisco supervisors proposed amendments to the city’s minimum wage ordinance. The ordinance requires employers to pay employees who work within the geographic boundaries of the city/county of San Francisco a minimum wage that is higher than that required by state law.

Currently, the minimum wage for San Francisco is $9.92 an hour. This applies to all employers, regardless of where they are located, with employees who work in San Francisco.

The proposed amendments would add additional penalties for violation of the minimum wage ordinance and increase the enforcement and investigatory powers of San Francisco’s Office of Labor Standards Enforcement (OLSE).

Between January 1 and November 15, 2010, the OLSE assessed employers approximately $1,267,000 in back wages and interest and collected approximately $601,000. During the same period, OLSE assessed approximately $125,000 in penalties and costs for violations of the minimum wage ordinance and collected approximately $62,000.

The proposed amendments, if passed, would:

• Require an employer to notify employees in writing when the OLSE is investigating the employer.
• Give the OLSE more power to investigate wage claims. Currently, the agency has authority only to inspect payroll records. Under the proposed amendments, the OLSE would have the power to inspect books and records, interview employees and investigate such matters as “necessary or appropriate” to determine if there is a violation.   
• Require employers to post a public notice if they fail to comply with a settlement agreement or adjudication of a wage violation. 
• Allows OLSE to issue an immediate citation – without notice - upon sufficient evidence of certain violations. 
• Increase the penalty for retaliating against workers who participate in wage investigations from $500 to $1000.

We will continue to track any changes to the San Francisco minimum wage ordinance and update you with current information.

CalChamber members can get more information about the ordinance on www.HRCalifornia.com. Not a CalChamber member? Test-drive HRCalifornia with a 15-day Free Trial. 

Gail Cecchettini Whaley, CalChamber Employment Law Editor/Staff Counsel