Redwood City’s recently adopted Minimum Wage Ordinance (MWO) will go into effect January 1, 2019, at which time qualifying employees must earn at least $13.50 per hour for each hour worked within the geographic boundaries of Redwood City. Here are a few things for employers to keep in mind regarding the ordinance:
Which employers are subject to the MWO?
Redwood City’s MWO will apply to all employers that maintain a business facility in Redwood City or are subject to Redwood City’s business license requirements.
Who is considered an “employee” for purposes of the MWO?
Any individual who performs at least two hours of work or more in a calendar week within the geographic boundaries of Redwood City is an “employee” eligible to be paid Redwood City’s local minimum wage rate. An individual does not need to be a resident of Redwood City in order to qualify.
Future Increases
On January 1, 2020, the Redwood City minimum wage is scheduled to increase to $15.00 per hour plus any amount corresponding to 2019’s cost-of-living/Consumer Price Index (CPI) increase.
Example: If the cost of living increases by five percent in 2019, then on January 1, 2020, the minimum wage will be $15.00 + ($15.00 x .05), or $15.75 (Redwood City Mun. Code sec. 46.030(b)).
Note: Additional increases after 2020 will be based on the CPI.
Redwood City’s scheduled rates are higher than California’s scheduled minimum wage rates. Also, the MWO does not have lower rates or deferred increases for small employers or nonprofits.
Required Notices
Similar to other local minimum wage ordinances, employers must have required employee notices, including a workplace poster that must be displayed in a conspicuous place for all employees at any workplace or jobsite. Additionally, employers have to keep payroll records for three years.
Penalties
Employers who violate the Redwood City MWO may be subject to administrative citations, penalties and other fees. Employers with employees working in Redwood City should take steps to prepare for the new MWO.
For more information about Redwood City’s MWO, see the city website.
Bianca Saad, Employment Law Subject Matter Expert
CalChamber offers Redwood City employers the required notices and posters on the CalChamber store site. Stay tuned for upcoming information on CalChamber’s Redwood City Minimum Wage Ordinance page in the HR Library!
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