On September 26, 2016 the Council approved an increase to the 2016 minimum wage of $11 per hour to $12 per hour effective January 1, 2017, $13.50 per hour effective January 1, 2018 and $15 per hour effective January 1, 2019. The minimum wage requirement set forth in Palo Alto’s Minimum Wage Ordinance applies to all employees who work two (2) hours per week within Palo Alto. Each year, after 2019 the City will adjust the minimum wage based on the U.S. Department of Labor’s Regional Consumer Price Index.
The City Council approved the ordinance to create a local minimum wage, and it requires Palo Alto employers to pay any employee the City’s Minimum Wage for all hours worked in Palo Alto. The City’s minimum wage is $12.00 per hour as of January 1, 2017.
The Local Minimum Wage Ordinance went into effect on January 1, 2016.
The City minimum wage rate will be $12.00 per hour starting January 1, 2017.
The City's Minimum Wage will increase to $13.50 per hour on January 1, 2018, and $15 per hour on January 1, 2019. Starting in 2019, the City will adjust the minimum wage each January 1 based on the Bay Area Consumer Index as published by the U.S. Department of Labor.
In addition to payment of the minimum wage, employers are required to:
1. Post a notice published by the City at the workplace informing employees of the law and the employees’ rights under the Ordinance; and,
2. Maintain payroll records for a period of four (4) years.
Yes. Employees are only entitled to be paid the Palo Alto minimum wage for those hours worked in Palo Alto.
Yes, the approved ordinance applies to any person who performs at least two (2) hours of work in any particular week.
No. An employer may not use an employee’s tips or fringe benefits as a credit towards the employer’s obligation to pay the City minimum wage.
Yes. All employees who perform at least two (2) hours of work per week must be paid at least $12.00 per hour for work performed in Palo Alto regardless of age.
Minimum wage claims will be processed and investigated without regard to a worker’s immigration status. Workers filing a claim will not be questioned about their immigration status.
No. Consistent with California Labor Code Section 3352(a), individuals who are the parents, spouses or children of the employers are not covered by the Palo Alto minimum wage. Domestic partners are also excluded under the Palo Alto minimum wage Ordinance.
Yes. All residential care facilities, regardless of number or type of occupant, are required to pay local minimum wage to employees when located in Palo Alto.
Do I have to pay all of my employees the Palo Alto minimum wage?
No, the Palo Alto minimum wage only applies to those employees who work in Palo Alto and only for those hours worked in Palo Alto.
No, except through a bona fide collective bargaining agreement.
The City may issue daily fines currently set at $50 or initiate a legal action for injunctive relief and damages. Employees may also bring a civil action for back payment and daily penalties of $50, reinstatement in employment and/or injunctive relief.
The City of Palo Alto minimum wage is applied in the jurisdictional boundary of the City of Palo Alto. A map of the city boundary can be found, here: City of Palo Alto Boundaries