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November 08, 2012

San Jose Approves Increased Minimum Wage

Voters in San Jose agreed this week to hike the city’s minimum hourly wage to $10 per hour — $2 per hour above the state minimum wage.

San Jose is now the second city in California to set its own minimum wage. Three other cities nationwide set their own minimum wage: Washington, D.C., and Santa Fe and Albuquerque, N.M.

The first California city to set its own minimum wage, San Francisco, did so in 2003. The current minimum wage in San Francisco is $10.24 an hour. The San Francisco rate increases to $10.55 an hour beginning January 1, 2013.

The San Jose law applies to employers who either maintain a facility in the city of San Jose or who are subject to the city’s business license tax (Chapter 4.76 of the city’s municipal code).

Like San Francisco, the new San Jose ordinance comes with a posting requirement for employers. Employers will be required to post a notice setting forth the current San Jose minimum wage rate.

Gail Cecchettini Whaley, CalChamber Employment Law Editor/Staff Counsel

CalChamber members can turn to the HR Library’s Minimum Wage section for more information on the minimum wage, living wage vs. minimum wage and when paying below the minimum wage is permissible. 

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