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:
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