Beginning July 1, 2026, employers must pay all employees who perform at least two hours of work per week in San Francisco at least $19.61 per hour. The new rate, set by the San Francisco Minimum Wage Ordinance (MWO), applies broadly, and employers should take steps to update pay practices and ensure compliance.
The MWO and Its Provisions
San Francisco has long been at the forefront of local minimum wage policy. The MWO is administered and enforced by the San Francisco Office of Labor Standards Enforcement (OLSE) and requires employers to pay covered employees a minimum hourly wage rate that is adjusted annually.
The MWO applies broadly to all employees who work in San Francisco, including temporary and part-time employees, provided they perform at least two hours of work per week within the city. A small number of “government supported employees” are subject to a minimum wage rate of $16.97 (increasing to $17.35 on July 1, 2026). Other exceptions may apply as outlined in the San Francisco MWO and the California Labor Code.
In addition to the minimum payment obligation, the MWO imposes affirmative compliance duties on employers. Employers must post the official minimum wage notice in a location where employees can read it easily. The ordinance also contains robust anti-retaliation provisions to protect employees from retaliation for asserting their rights under the MWO.
Takeaways
Employers should be aware of several key takeaways:
- The MWO has a low threshold that only requires two hours of work per week within the City of San Francisco to trigger coverage. Therefore, employers with any workforce presence in San Francisco should confirm that every covered employee is paid at or above the new rate beginning July 1, 2026.
- Businesses that use temporary workers supplied by a staffing agency should be aware that California Labor Code Section 2810.3 may impose joint employer liability for wage-and-hour violations. Under that statute, a “client employer” that obtains workers from a labor contractor shares civil liability with the labor contractor for the payment of wages and benefits. Businesses relying on staffing agencies for workers in San Francisco should confirm that those workers are paid in compliance with the MWO, as liability for noncompliance may extend to the client employer.
- Failure to comply with the MWO’s posting requirement may independently result in penalties. Employers should obtain and display the updated MWO notice as soon as it becomes available.
- The MWO provides strong anti-retaliation protections that prohibit an employer from taking adverse action in response to an employee asserting a right to be paid the minimum wage. Employers should ensure that supervisors and managers understand these protections and that no retaliatory conduct occurs against employees who raise pay-related concerns.
- Employers face meaningful enforcement exposure under the MWO. Employees may file a civil lawsuit against their employer for any violation. In addition, the city’s OLSE may investigate potential violations and enforce compliance by ordering payment of all unpaid wages and penalties. Given this dual-track enforcement framework (private litigation and government action), employers should prioritize compliance.
Next Steps
Employers with workers in San Francisco should take prompt action to review their current pay rates and ensure compliance with the new $19.61 hourly minimum wage effective July 1, 2026.
In addition, employers should obtain and post the updated official minimum wage notice in a conspicuous location where it can be readily viewed and read by employees, and managers and supervisors should be trained on the anti-retaliation provisions of the ordinance. The new MWO poster and additional information are available on the city’s website.
San Francisco enforces other local employment ordinances, including the Fair Chance Ordinance, the Family Friendly Workplace Ordinance and the Paid Parental Leave Ordinance. For questions about the MWO or other San Francisco-specific laws, contact the authors of this article or a member of the labor and employment team.