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This Article shall be known as the “Minimum Wage Ordinance.”
(Added as Administrative Code Sec. 12R.1 by Proposition L, 11/4/2003; redesignated by Ord. 221-23, File No. 230835, App. 11/3/2023, Eff. 12/4/2023, Oper. 1/4/2024)
This Article is adopted pursuant to the powers vested in the City and County of San Francisco (“the City”) under the laws and Constitution of the State of California and the City Charter including, but not limited to, the police powers vested in the City pursuant to Article XI, Section 7 of the California Constitution and Section 1205(b) of the California Labor Law.
(Added as Administrative Code Sec. 12R.2 by Proposition L, 11/4/2003; redesignated by Ord. 221-23, File No. 230835, App. 11/3/2023, Eff. 12/4/2023, Oper. 1/4/2024)
As used in this Article, the following capitalized terms shall have the following meanings:
“Agency” shall mean the Office of Labor Standards Enforcement or its successor agency.
“City” shall mean the City and County of San Francisco.
“Employee” shall mean any person who:
(a) In a particular week performs at least two (2) hours of work for an Employer within the geographic boundaries of the City; and
(b) Qualifies as an employee entitled to payment of a minimum wage from any employer under the California minimum wage law, as provided under Section 1197 of the California Labor Code and wage orders published by the California Industrial Welfare Commission, or is a participant in a Welfare-to-Work Program.
“Employer” shall mean any person, as defined in Section 18 of the California Labor Code, including corporate officers or executives, who directly or indirectly or through an agent any other person, including through the services of a temporary services or staffing agency or similar entity, employs or exercises control over the wages, hours or working conditions of any Employee. “Employer” shall include the City and the San Francisco In-Home Supportive Services Public Authority.
“Government Supported Employee” shall mean any Employee who is: (1) under the age of 18 and is employed as an after-school or summer Employee in a bona fide training or apprenticeship program in a position that is subsidized by the federal, state, or local government; or (2) over the age 55 and is employed by a Non-Profit Corporation that provides social welfare services as a core mission to individuals who are over the age of 55 and is in a position that is subsidized by federal, state, or local government. The second category shall apply only to Non-Profit Corporations operating as of January 1, 2015, and apply only as to the number of employees over the age of 55 holding positions in the Corporation as of January 1, 2015 that are subsidized by federal, state, or local government, plus 25% of that number. Any employees hired by a Non-Profit Corporation after January 1, 2015 that exceed the numerical threshold in the prior sentence (including the additional 25%) shall not qualify as “Government Supported Employees.” If at any time the number of employees over the age of 55 holding positions in the Corporation that are subsidized by federal, state, or local government falls below that numerical threshold (including the additional 25%), then those positions shall qualify as “Government Supported Employee” positions.
“Minimum Wage” shall have the meaning set forth in Section 1.4 of this Article.
“Nonprofit Corporation” shall mean a nonprofit corporation, duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation and (if a foreign corporation) in good standing under the laws of the State of California, which corporation has established and maintains valid nonprofit status under Section 501(c)(3) of the United States Internal Revenue Code of 1986, as amended, and all rules and regulations promulgated under such Section.
“Welfare-to-Work Program” shall mean the City’s CalWORKS Program, County Adult Assistance Program (CAAP) which includes the Personal Assisted Employment Services (PAES) Program, and General Assistance Program, and any successor programs that are substantially similar to them.
(Added as Administrative Code Sec. 12R.3 by Proposition L, 11/4/2003; amended by Proposition J, 11/4/2014; redesignated by Ord. 221-23, File No. 230835, App. 11/3/2023, Eff. 12/4/2023, Oper. 1/4/2024)
(a) Employers shall pay Employees no less than the Minimum Wage for each hour worked within the geographic boundaries of the City.
(1) Except as provided in subsection 1.4(b), the Minimum Wage paid to Employees shall be as follows:
(A) Beginning on May 1, 2015, the Minimum Wage shall be an hourly rate of $12.25.
(B) Beginning on July 1, 2016, the Minimum Wage shall be an hourly rate of $13.00.
(C) Beginning on July 1, 2017, the Minimum Wage shall be an hourly rate of $14.00.
(D) Beginning on July 1, 2018, the Minimum Wage shall be an hourly rate of $15.00.
(E) Beginning on July 1, 2019, and each year thereafter, the Minimum Wage shall increase by an amount corresponding to the prior year’s increase, if any, in the Consumer Price Index for urban wage earners and clerical workers for the San Francisco-Oakland-San Jose, CA metropolitan statistical area, as determined by the Controller.
(b) Beginning on May 1, 2015, the Minimum Wage paid to Government Supported Employees shall be an hourly rate of $12.25. Beginning on July 1, 2016, and each year thereafter, the Minimum Wage paid to Government Supported Employees shall increase by an amount corresponding to the prior year’s increase, if any, in the Consumer Price Index for urban wage earners and clerical workers for the San Francisco-Oakland-San Jose, CA metropolitan statistical area, as determined by the Controller.
(Added as Administrative Code Sec. 12R.4 by Proposition L, 11/4/2003; amended by Proposition J, 11/4/2014; redesignated by Ord. 221-23, File No. 230835, App. 11/3/2023, Eff. 12/4/2023, Oper. 1/4/2024)
(a) By December 1 of each year, the Agency shall publish and make available to Employers a bulletin announcing the adjusted Minimum Wage rate for the upcoming year, which shall take effect on January 1. In conjunction with this bulletin, the Agency shall by December 1 of each year publish and make available to Employers, in all languages spoken by more than five percent of the San Francisco work force, a notice suitable for posting by Employers in the workplace informing Employees of the current Minimum Wage rate and of their rights under this Article.
(b) Every Employer shall post in a conspicuous place at any workplace or job site where any Employee works the notice published each year by the Agency informing Employees of t he current Minimum Wage rate and of their rights under this Article. Every Employer shall post such notices in English, Spanish, Chinese and any other language spoken by at least five percent of the Employees at the workplace or job site. Every Employer shall also provide each Employee at the time of hire the Employer’s name, address and telephone number in writing.
(c) Employers shall retain payroll records pertaining to Employees for a period of four years, and shall allow the Agency access to such records, with appropriate notice and during business hours, to monitor compliance with the requirements of this Article. Where an Employer does not maintain or retain adequate records documenting wages paid or does not allow the Agency reasonable access to such records, it shall be presumed that the Employer paid no more than the applicable federal or state minimum wage, absent clear and convincing evidence otherwise.
(d) The Director of the Agency or his or her designee shall have access to all places of labor subject to this ordinance during business hours to inspect books and records, interview employees and investigate such matters necessary or appropriate to determine whether an Employer has violated any provisions of this ordinance.
(e) The Agency shall be authorized under Section 1.7 to develop guidelines or rules to govern Agency investigative activities, including but not limited to legal action to be taken in the event of employer noncompliance or interference with Agency investigative actions.
It shall be unlawful for an Employer or any other party to discriminate in any manner or take adverse action against any person in retaliation for exercising rights protected under this Article. Rights protected under this Article include, but are not limited to: the right to file a complaint or inform any person about any party’s alleged noncompliance with this Article; and the right to inform any person of his or her potential rights under this Article and to assist him or her in asserting such rights. Protections of this Article shall apply to any person who mistakenly, but in good faith, alleges noncompliance with this Article. Taking adverse action against a person within ninety (90) days of the person’s exercise of rights protected under this Article shall raise a rebuttable presumption of having done so in retaliation for the exercise of such rights.
(Added as Administrative Code Sec. 12R.6 by Proposition L, 11/4/2003; redesignated by Ord. 221-23, File No. 230835, App. 11/3/2023, Eff. 12/4/2023, Oper. 1/4/2024)
(a) Enforcement Priority. It is the policy of the City and County of San Francisco that all employees be compensated fairly according to the law and that Employers who engage in wage theft be held accountable. Towards that end, the Mayor and Board of Supervisors shall study and review the feasibility of enacting additional measures consistent with state law to enhance the Agency’s enforcement tools and the City’s efforts to combat wage theft. The Mayor and Board of Supervisors shall also take steps to ensure optimal collaboration among all City agencies and departments, as well as between the City and state and federal labor standards agencies, in the enforcement of this Article.
(b) Implementation. The Agency shall be authorized to coordinate implementation and enforcement of this Article and may promulgate appropriate guidelines or rules for such purposes consistent with this Article. Any guidelines or rules promulgated by the Agency shall have the force and effect of law and may be relied on by Employers, Employees and other parties to determine their rights and responsibilities under this Article. Any guidelines or rules may establish procedures for ensuring fair, efficient and cost-effective implementation of this Article, including supplementary procedures for helping to inform Employees of their rights under this Article, for monitoring Employer compliance with this Article, and for providing administrative hearings to determine whether an Employer or other person has violated the requirements of this Article. The Agency shall make every effort to resolve complaints in a timely manner and shall have a policy that the Agency shall take no more than one year to settle, request an administrative hearing under Section 1.7(b), or initiate a civil action under Section 1.7(c). The failure of the Agency to meet these timelines within one year shall not be grounds for closure or dismissal of the complaint.
(c) Administrative Enforcement.
(1) The Agency is authorized to take appropriate steps to enforce this Article. The Agency may investigate any possible violations of this Article by an Employer or other person. Where the Agency has reason to believe that a violation has occurred, it may order any appropriate temporary or interim relief to mitigate the violation or maintain the status quo pending completion of a full investigation or hearing.
(2) Where the Agency, after a hearing that affords a suspected violator due process, determines that a violation has occurred, it may order any appropriate relief including, but not limited to, reinstatement, the payment of any back wages unlawfully withheld, and the payment of an additional sum as an administrative penalty in the amount of $50 to each Employee or person whose rights under this Article were violated for each day that the violation occurred or continued. A violation for unlawfully withholding wages shall be deemed to continue from the date immediately following the date that the wages were due and payable as provided in Part 1 (commencing with Section 200) of Division 2 of the California Labor Code, to the date immediately preceding the date the wages are paid in full. Where prompt compliance is not forthcoming, the Agency may take any appropriate enforcement action to secure compliance, including initiating a civil action pursuant to Section 1.7(c) of this Article and/or, except where prohibited by state or federal law, requesting that City agencies or departments revoke or suspend any registration certificates, permits or licenses held or requested by the Employer or person until such time as the violation is remedied. All City agencies and departments shall cooperate with revocation or suspension requests from the Agency. In order to compensate the City for the costs of investigating and remedying the violation, the Agency may also order the violating Employer or person to pay to the City a sum of not more than $50 for each day and for each Employee or person as to whom the violation occurred or continued. Such funds shall be allocated to the Agency and shall be used to offset the costs of implementing and enforcing this Article. The amounts of all sums and payments authorized or required under this Article shall be updated annually for inflation, beginning January 1, 2005, using the inflation rate and procedures set forth in Section 1.4(b) of this Article.
(3) An Employee or other person may report to the Agency in writing any suspected violation of this Article. The Agency shall encourage reporting pursuant to this subsection by keeping confidential, to the maximum extent permitted by applicable laws, the name and other identifying information of the Employee or person reporting the violation. Provided, however, that with the authorization of such person, the Agency may disclose his or her name and identifying information as necessary to enforce this Article or for other appropriate purposes. In order to further encourage reporting by Employees, if the Agency notifies an Employer that the Agency is investigating a complaint, the Agency shall require the Employer to post or otherwise notify its Employees that the Agency is conducting an investigation, using a form provided by the Agency.
(d) Civil Enforcement. The Agency, the City Attorney, any person aggrieved by a violation of this Article, any entity a member of which is aggrieved by a violation of this Article, or any other person or entity acting on behalf of the public as provided for under applicable state law, may bring a civil action in a court of competent jurisdiction against the Employer or other person violating this Article and, upon prevailing, shall be entitled to such legal or equitable relief as may be appropriate to remedy the violation including, without limitation, the payment of any back wages unlawfully withheld, the payment of an additional sum as penalties in the amount of $50 to each Employee or person whose rights under this Article were violated for each day that the violation occurred or continued, reinstatement in employment and/or injunctive relief, and shall be awarded reasonable attorneys’ fees and costs. Provided, however, that any person or entity enforcing this Article on behalf of the public as provided for under applicable state law shall, upon prevailing, be entitled only to equitable, injunctive or restitutionary relief, and reasonable attorneys’ fees and costs. Nothing in this Article shall be interpreted as restricting, precluding, or otherwise limiting a separate or concurrent criminal prosecution under the Municipal Code or state law. Jeopardy shall not attach as a result of any administrative or civil enforcement action taken pursuant to this Article.
(e) Interest. In any administrative or civil action brought for the nonpayment of wages under this Section, the Agency or court, as the case may be, shall award interest on all due and unpaid wages at the rate of interest specified in subdivision (b) of Section 3289 of the California Civil Code, which shall accrue from the date that the wages were due and payable as provided in Part 1 (commencing with Section 200) of Division 2 of the California Labor Code, to the date the wages are paid in full.
(f) Posting Notice of Violation. If an Employer fails to comply with a settlement agreement with the Agency, a final determination by the Agency after an administrative hearing officer issues a decision after a hearing under Section 1.7(b), an administrative citation issues under Section 1.19, a decision made in an administrative appeal brought under Section 1.21, or judgment issued by the Superior Court, and the Employer has not filed an appeal from the administrative hearing decision, administrative citation, administrative appeal decision, or judgment, or the appeal is final, the Agency may require the Employer to post public notice of the Employer’s failure to comply in a form determined by the Agency.
(Added as Administrative Code Sec. 12R.7 by Proposition L, 11/4/2003; amended by Ord. 205-06, File No. 060247, App. 7/25/2006; Ord. 175-11, File No. 110594, App. 9/16/2011, Eff. 10/16/2011; Proposition J, 11/4/2014; redesignated by Ord. 221-23, File No. 230835, App. 11/3/2023, Eff. 12/4/2023, Oper. 1/4/2024)
All or any portion of the applicable requirements of this Article shall not apply to Employees covered by a bona fide collective bargaining agreement to the extent that such requirements are expressly waived in the collective bargaining agreement in clear and unambiguous terms.
(Added as Administrative Code Sec. 12R.8 by Proposition L, 11/4/2003; redesignated by Ord. 221-23, File No. 230835, App. 11/3/2023, Eff. 12/4/2023, Oper. 1/4/2024)
This Article provides for payment of a minimum wage and shall not be construed to preempt or otherwise limit or affect the applicability of any other law, regulation, requirement, policy or standard that provides for payment of higher or supplemental wages or benefits, or that extends other protections including, but not limited to, the San Francisco Minimum Compensation Ordinance.
(Added as Administrative Code Sec. 12R.9 by Proposition L, 11/4/2003; redesignated by Ord. 221-23, File No. 230835, App. 11/3/2023, Eff. 12/4/2023, Oper. 1/4/2024)
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