If you’re an employer in San Francisco, keeping up with changes to the city’s minimum wage is important.
That way, you can adjust your payroll to comply with labor laws and do right by your employees. So, what happened to the city’s minimum wage in 2022?
Let’s find out!
San Francisco Minimum Wage 2022
San Francisco’s minimum wage is $16.99 per hour for tipped and non-tipped employees, effective July 1, 2022.
This rate applies to all employees working two or more hours a week, including minors, temporary, and part-time workers.
At the beginning of 2022, the city’s minimum wage was $16.32 per hour, but every July the city’s Department of Labor Standards Enforcement (DLSE) can raise the minimum wage if inflation (as measured by the Consumer Price Index) increases. You can track future minimum wage updates at sfgov.org.
Here’s a look at how the city’s hourly minimum wage has changed over the years:
|Effective Date||Minimum Wage (per hour)|
|July 1, 2022||$16.99|
|July 1, 2021||$16.32|
|July 1, 2020||$16.07|
|July 1, 2019||$15.59|
|July 1, 2018||$15.00|
|July 1, 2017||$14.00|
Are There Any Exemptions to Paying Minimum Wage?
The city has a different minimum wage for a small group of workers classified as “Government Supported Employees.” As of July 1, 2022, their minimum wage is $15.03 per hour.
Workers in this group must be one of the following:
- Employees under the age of 18 working in a government-sponsored after-school or summer apprenticeship program
- Some employees over the age of 55 working for a nonprofit organization in a position subsidized by the government
There is no tipped minimum wage in California, meaning employees who earn tips must be paid minimum wage rates regardless of how much they earn in tips.
What is the Minimum Wage in the Bay Area?
The average minimum wage in the Bay Area is $16.04. Emeryville has the highest minimum wage at $17.68 per hour while San Leandro has the lowest at $15 per hour.
Here are the minimum wage rates for Bay Area cities:
|East Palo Alto||$15.60|
|Half Moon Bay||$15.56|
|Hayward||$15.56 for large businesses, $14.52 for small businesses|
|Novato||$15.77 for very large businesses, $15.53 for large businesses, and $15 for small businesses|
|Sonoma||$16 for large businesses, $15 for small businesses|
|South San Francisco||$15.80|
Your employee’s address will tell you which labor laws to follow. For instance, say your business is located in Oakland, where the minimum wage is $15.06 per hour, but you hire employees who live in Berkeley. In that case, you must pay the Berkeley rate of $16.99 per hour for those workers.
How Does San Francisco’s Rate Compare to the Federal Minimum Wage?
San Francisco’s minimum wage is $9.74 higher than the federal minimum wage, which is $7.25 an hour.
In the U.S., states and localities (city and county) can set their own rates as long as they are equal to or higher than the federal one.
How Does San Francisco’s Rate Compare to the State’s Minimum Wage?
San Francisco’s minimum wage is $2.99-$1.99 more than California’s minimum wage, which is $14 an hour for businesses with 25 employees or less and $15 an hour for companies larger than that.
However, in January that will go up to $15.50 an hour for all businesses statewide due to inflation.
How Does San Francisco’s Rate Compare to Other Cities Outside of the Bay Area?
San Francisco’s minimum wage is higher than other cities outside of the Bay Area that have local wage laws. Here are their rates:
|Los Angeles (City)||$16.04|
|Los Angeles County (Unincorporated)||$15.96|
|West Hollywood||$16.50 for large businesses, $16 for small businesses|
What State Has the Highest Minimum Wage in 2022?
California is the state with the highest minimum wage at $15 per hour for large employers (26 or more employees) and $14 per hour for employers with 25 or fewer employees.
What Employees Should Know About Minimum Wage Requirements
Employees who do not receive minimum wage can file a complaint with the city by calling the Office of Labor Standards Enforcement at (415) 554-6292 or emailing email@example.com.
Your employer cannot retaliate against you (by firing you or reducing hours) for making a violation claim.
The city will investigate all claims, and if there is a payment issue, they’ll instruct employers to send you your unpaid wages.
Complying with Minimum Wage Laws
Your payroll should be updated to reflect the new minimum wage on July 1, 2022. Any hours worked on or after that day are subject to the $16.99 per hour minimum rate. That way, you can keep employees happy and avoid paying late penalties.
Besides updating your payroll to reflect the new rate, employers must also post the city’s minimum wage poster where employees can easily read it.
So, now that you know how your local minimum wage works, you can stay ahead of the compliance curve and do right by your employees.