On November 6, 2012, the City of San Jose approved a Minimum Wage Ordinance (MWO) that became effective on March 11, 2013. Under the MWO, the minimum wage for “covered employees” working within the city limits of San Jose will be $10.00 per hour. A “covered employee” is anyone who works two or more hours per week within the city limits of San Jose. Employees covered by a collective bargaining agreement may be subject to waiver of the MWO requirements if agreed to by the employer and the union.
The MWO adopts the definition of “employer” as found in Section 18 of the California Labor Code and includes any person or entity that employs workers within the city limits of San Jose. The only employer exceptions to the MWO are for those employers who do not have a facility within the City of San Jose or those employers who are not subject to the San Jose Business Tax.
Covered employers will be required to post notices in the workplace. For a copy of the required notice as well as additional information about the MWO click here. Employers are also required to maintain payroll records relating to employees covered by the MWO for a period of 4 years.
The MWO will be enforced by the San Jose Office of Equality Assurance and will be enforced on a complaint-only basis which means that the agency will not actively monitor or enforce the minimum wage requirements until a complaint is filed.
Betsy Johnson is the managing shareholder of the Los Angeles office of Ogletree Deakins.