The City of Fremont is the latest city to adopt a local minimum wage ordinance. On January 15, 2019, the Fremont City Council voted unanimously to increase the minimum wage to $15 by 2020 for large employers and by 2021 for smaller employers.
The Fremont Minimum Wage Ordinance (MWO) will apply to all employers that are subject to Fremont’s business license requirements, and will cover all employees working two hours or more within the geographic boundaries of Fremont.
Under Fremont’s new MWO schedule, employers with 26 or more employees will be required to pay their employees $13.50 per hour by July 1, 2019, and then $15 per hour by July 1, 2020. Subsequent increases will correspond to any Consumer Price Index (CPI) increase, up to five percent. Employers with 25 or less employees will be required to pay their workers $15 per hour by July 1, 2021.
The MWO will include an exemption for nonprofit organizations; however, nonprofit organizations will still need to comply with state minimum wage requirements. The MWO is not applicable to employees who are standing by or on call.
Similar to other local MWOs, employers will have to post required employee notices, including a workplace poster that must be displayed in a conspicuous place at any workplace or jobsite. Additionally, employers will have to keep payroll records for four years. The new ordinance will need to be confirmed with a second reading at a future council meeting before going into effect.
Employers who violate the Fremont MWO may be subject to administrative citations, penalties and other fees. Employers with employees working in Fremont should take steps to prepare for the new MWO, including obtaining required posters. CalChamber offers a variety of California city and county labor law posters in the CalChamber store – Fremont’s poster coming soon!
Bianca Saad, Employment Law Subject Matter Expert
Stay tuned for more details about this ordinance, which will be available for CalChamber members on our Local Ordinances section of HR California. Not a member? See how CalChamber can help you.
