What Is the Minimum Wage in San Francisco for 2023?

Are There Any Exemptions to Paying Minimum Wage?

The city has a different minimum wage for a small group of workers classified as “Government Supported Employees.” As of July 1, 2022, their minimum wage is $15.03 per hour. 

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Workers in this group must be one of the following:

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• Employees under the age of 18 working in a government-sponsored after-school or summer apprenticeship program
• Some employees over the age of 55 working for a nonprofit organization in a position subsidized by the government

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There is no tipped minimum wage in California, meaning employees who earn tips must be paid minimum wage rates regardless of how much they earn in tips.

What is the Minimum Wage in the Bay Area?

The Bay Area has an average minimum wage of about $16.50, depending on which cities you include in your calculations. Emeryville has the highest minimum wage at $17.68 per hour, and San Francisco and Berkeley come in second. Here are the minimum wage rates for some Bay Area cities as of January 1, 2023.

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• Alameda: $15.75
• Berkeley: $16.99
• Emeryville: $17.68
• Fremont: $16.00
• Foster City: $16.50
• Menlo Park: $16.20
• Milpitas: $16.40
• Oakland: $15.97
• San Francisco: $16.99
• South San Francisco: $16.70

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Your employee’s address will tell you which labor laws to follow. For instance, say your business is located in Oakland, where the minimum wage is $15.97 per hour, but you hire employees who live in Berkeley. In that case, you must pay the Berkeley rate of $16.99 for those workers.

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Using payroll software like Hourly makes it easy to update your team’s wages and pay them with a single click.

How Does San Francisco’s Rate Compare to the Federal Minimum Wage?

San Francisco’s minimum wage is $9.74 higher than the federal minimum wage, which is $7.25 an hour.

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In the U.S., states and localities (city and county) can set their own rates as long as they are equal to or higher than the federal one. 

How Does San Francisco’s Rate Compare to the State’s Minimum Wage?

San Francisco’s minimum wage is $1.49 more than California’s minimum wage, which is $15.50 an hour.

How Does San Francisco’s Rate Compare to Other Cities Outside of the Bay Area?

San Francisco is on the higher end when compared to other cities in California with local wage laws. Here are the minimum wage rates for some other major cities outside the Bay Area.

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• City of Los Angeles: $16.04 ($18.86 for employees of hotels with more than 60 rooms)
• Los Angeles County (unincorporated areas): $15.96
• Malibu: $15.96
• Palo Alto: $17.25
• Pasadena: $16.11
• San Diego: $16.30
• San Jose: $17.00
• Santa Clara: $17.20
• Santa Monica: $15.96 ($18.17 for hotels and businesses operating on hotel property)
• Sunnyvale: $17.95
• West Hollywood: $17.50 ($17.00 for businesses with fewer than 50 employees and $18.35 for hotel workers)

What State Has the Highest Minimum Wage in 2023?

Washington is the state with the highest minimum wage at $15.74 per hour.

What Employees Should Know About Minimum Wage Requirements

Employees who do not receive minimum wage can file a complaint with the city by calling the Office of Labor Standards Enforcement at (415) 554-6292 or emailing mwo@sfgov.org.

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Your employer cannot retaliate against you (by firing you or reducing hours) for making a violation claim. 

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The city will investigate all claims, and if there is a payment issue, they’ll instruct employers to send you your unpaid wages.

Complying with Minimum Wage Laws

Your payroll should be updated to reflect the new minimum wage on July 1, 2022. Any hours worked on or after that day are subject to the $16.99 per hour minimum rate. That way, you can keep employees happy and avoid paying late penalties.

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Besides updating your payroll to reflect the new rate, employers must also post the city’s minimum wage poster where employees can easily read it. 

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So, now that you know how your local minimum wage works, you can stay ahead of the compliance curve and do right by your employees.