Proposition J passed in San Francisco earlier this month approving a minimum wage increase to $11.05/hour effective January 1, 2015. On May 1, it will increase again to $12.25/hour. San Francisco employers should plan to update payroll systems and paystubs to reflect this change in hourly and overtime rates for any employees impacted by this change. Also be sure to add the new San Francisco Minimum Wage poster [pdf] to your bulletin board by the end of the year. As if two increases in just five months weren’t enough, additional increases have been approved for July 1, 2016 ($13.00), July 1, 2017 ($14.00) and July 1, 2018 ($15.00).
If you are a for-profit entity that contracts with or leases space from the City of San Francisco, note that the Minimum Compensation Ordinance (MCO) rate goes up to $13.02/hour on January 1, 2015. Starting in 2015, the nonprofit rate for City contractors will be the San Francisco minimum wage of $11.05. Here is a link [pdf] to the updated workplace poster reflecting the MCO increase.