San Francisco, CA: Important Dates for San Francisco’s Minimum Wage, Sick Leave and Pay Parity Ordinances

APPLIES TO

All Employers with San Francisco Employees

EFFECTIVE

June 7 and July 1, 2018

QUESTIONS?

Contact HR On-Call

(888) 378-2456

San Francisco is home to a bevy of local ordinances controlling minimum wage, paid sick leave, and pay parity, among others.  Though these ordinances have been in place for some time, each has new guidance or important updates that are effective within the next two months.

Minimum Wage Ordinance

The San Francisco minimum wage increases to $15.00 an hour on July 1, 2018.  This is more generous than the California statewide requirement, so employers of covered employees must review employees’ compensation rates for compliance.  Employers are also required to display a posting about the current minimum wage rate in a location conspicuous to employees.  The San Francisco Office of Labor Standards Enforcement (“OLSE”) has updated their website with a revised posting employers may use to satisfy this requirement.

Paid Sick Leave Ordinance

On May 7, 2018, the OLSE also published new rules interpreting the Paid Sick Leave Ordinance (“PSLO”).  These rules went into effect on June 7, 2018.  This document builds upon the rules originally published in 2007, and adds guidance on:

  • Definition of “controlled group of companies”;
  • Definition of joint employment, including clarification that each employer is obligated to ensure compliance with the PLSO;
  • Establishment of enforcement procedures, corrective action, and penalties (including calculating remedy payments or hours), and the administrative appeals process; and
  • Time in which enforcement procedures, corrective actions, or the administrative appeals process may occur.

Parity in Pay Ordinance

Also known as the Consideration of Salary History Ordinance, the Parity in Pay Ordinance goes into effect on July 1, 2018.  Similar to California’s current ban on salary history inquiries (AB 168), employers will be prohibited from considering current or past salary information when making hiring or compensation decisions for job applicants.  However, the Ordinance goes a step further and also prohibits current or former employers from disclosing a current or former employee’s salary history without the employee’s authorization to do so, unless the release of salary history is required by law, is part of a publicly available record, or is subject to a collective bargaining agreement. Interestingly, the Ordinance specifically permits employers to discuss an applicant’s salary expectations.

Employers are required to display the “Employer Consideration of Salary History Poster” in the workplace in English and in any language spoken by at least 5% of the employees in the workplace.  The poster is available for download on the OLSE’s website.

Action Items

  1. Review and update minimum wage rates paid to employees in accordance with this new ruling.
  2. Review health insurance benefits offered to employees for compliance with this new ruling.
  3. Update payroll procedures and practices accordingly.
  4. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

© 2018 ManagEase

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