On July 1, 2017, the minimum wage increased in nine California cities, and San Francisco’s Parental Leave Ordinance became applicable to more employers. Employers affected by these changes should be sure they are in compliance.
Minimum Wage Increases
Here are the minimum wage changes in the affected cities:
These city ordinances have various exceptions for certain employees (e.g., trainees) and for certain employers (e.g. some non-profits). Employers who think an exception may be applicable should check the city website or consult with counsel to be sure. Employers should also be sure to update required notices, which also be found on the city websites or obtained from counsel.
Many other cities in California have minimum wage ordinances (and notice posting requirements) that have not changed this month, including: Berkeley, Cupertino, El Cerrito, Long Beach, Los Altos, Mountain View, Oakland, Palo Alto, Richmond, Sacramento, San Diego, San Mateo, Santa Clara, and Sunnyvale. In most of these cities, as well as throughout California under state law, the minimum wage will increase on January 1, 2018.
San Francisco’s Paid Parental Leave Ordinance
As of July 1, 2017, companies with 35 or more employees worldwide are required to comply with San Francisco’s Paid Parental Leave Ordinance for employees who work in San Francisco. The ordinance went into effect on January 1, 2017, for employers with 50 or more employees. The threshold has now dropped to 35 employees, and will drop to 20 employees on January 1, 2018.
The ordinance requires covered employers to supplement the amount employees receive under California’s Paid Family Leave program, such that employees receive six weeks of fully paid leave for the birth of a child or the placement of an adopted child. To be eligible for the San Francisco benefit, the employee must have commenced employment at least 180 days (six months) before the start of the leave; must perform at least eight hours of work per week, and at least 40 percent of the total weekly work hours, in San Francisco; and must be eligible to receive California Paid Family leave.