On January 14, 2019, Daly City’s City Council voted unanimously to increase the local minimum wage to $12 per hour, effective February 13, 2019, joining an ever-growing list of municipalities to enact a local minimum wage ordinance. The current California state minimum wage rate for large employers with 26 or more employees is also $12 per hour ($11 per hour for employers with 25 or fewer employees), but this local ordinance requires all employers, regardless of size, to pay the higher $12 rate.
The Daly City Minimum Wage Ordinance (MWO) will apply to all employers that employ (or otherwise exercise control over the wages, hours or working conditions of) any employee who performs at least two hours of work within the geographic boundaries of Daly City for that employer.
Under Daly City’s new MWO schedule, all employers must pay their employees $12 per hour by February 13, 2019. The rate adjusts annually beginning January 1, 2020, at which time employers will need to pay their employees $13.75 per hour, and then $15 per hour beginning January 1, 2021. Subsequent increases will correspond to any Consumer Price Index increase, up to 3.5 percent.
The MWO will apply to both adult and minor employees, and does not contain any exemptions for nonprofit organizations. Employers are required to post employee notices, including a workplace poster that must be displayed in a conspicuous place at any workplace or job site. Additionally, employers will have to keep payroll records for three years.
Employers who violate the Daly City MWO may be subject to administrative citations, penalties and other fees. Employers with employees working in Daly City 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. Daly City’s poster is now available! Daly City employers, make sure you have a current posting for all employees.
Bianca Saad, Employment Law Subject Matter Expert
CalChamber members will soon be able to view more Daly City Minimum Wage Ordinance details on our Local Ordinances section of HR California. Not a member? See how CalChamber can help you.
