San Mateo City Council has approved a new minimum wage ordinance that will become effective January 1, 2017. San Mateo, along with numerous other cities around the country, is moving forward to bridge the gap on minimum wages.
Which Employers Must Comply?
All employers who are subject to the City of San Mateo Business License Tax and who maintain a facility in San Mateo must comply with the ordinance. The only exception is non-profit organizations who are tax exempt per Section 501(c) (3). Those organizations are subject to minimum wage at a separate rate outlined below.
What Employers Must Know
The key items that employers must know are outlined as follows:
- Effective date – January 1, 2017
- Any employee who works at least two hours per week in San Mateo is subject to the minimum wage
- Tips and other benefits may not be used to offset the minimum wage
- Minimum wage applies to all individuals, regardless of immigration status
- The minimum wage will be adjusted annually at the first of each year
What an Employer Must Do
According to the ordinance, employers have specific responsibilities concerning notification of employees.
- Employer must give written notice to all current employees and all future employees at the time of hire.
- Employers must display notice, along with all other labor compliance posters, in areas where employees frequent, such as break rooms.
- Employer must provide every employee at time of hire with the employer’s name, address and telephone number in writing.
- Employers may not retaliate against employees who file complaints with the city about violations to this minimum wage law.
Failure to comply with these notifications will result in violations against the municipal code which could result in the following:
- Payment of back and a civil penalty of $50 per day per employee.
- Payment of interest on all due and unpaid wages from the date that the wages were due and payable.
- Reimbursement of the City’s administrative costs and reasonable attorney fees.
- Assessment of additional fees as a civil penalty of $50 to the City for each day for each employee whose rights were violated.
What are the Minimum Wage Requirements?
San Mateo minimum wage for the upcoming three years is as follows. All future increases will occur on the first of each calendar year.
Year Citywide Non-Profit
1/1/17 $12.00 $10.50
1/1/18 $13.50 $12.00
1/1/19 $15.00 $13.50
