You can find more information regarding the minimum wage ordinance (MWO) on the city's website.

The MWO applies to your business if you receive or hold a business license from the city, and if you directly or indirectly employ or exercise control over the wages, hours or working conditions of any Foster City based employee.2 This MWO applies to temporary employees and employees hired through a staffing agency or similar entity.

Minimum Wage Rate

• Effective January 1, 2026, the Foster City minimum wage for most employees is $17.85 per hour, up from the 2025 rate of $17.39 per hour. Future rate increases will be made annually on January 1 based on the Regional Consumer Price Index, up to 3 percent.3

• The Foster City minimum wage is higher than the standard California state minimum wage but not the state minimum wage rates for the fast food and health care industries, effective April 1, 2024, and October 16, 2024, respectively. You must pay the higher minimum wage to employees eligible for it. For more information on the state minimum wage rates, see the HR Library’s Minimum Wage.

You can find the current Foster City minimum wage ordinance on the city's website.

Coverage and Eligibility

A covered employee (employee) under the MWO is any employee who performs at least two (2) hours of work in one (1) calendar week in Foster City, whether full or part-time.4

You must pay employees at least the Foster City minimum wage for each hour worked in Foster City, not including tips and gratuities.5

Posting, Notice and Recordkeeping Requirements

The MWO requires you to post an official, city-provided notice specifying the minimum wage and describing employee rights under the MWO.6 By December 1 of each year, the city will publish this notice in English and other languages as provided in any implementing regulations.7 The notice must be posted prominently in areas at the work site where it will be seen by all employees.8

• Foster City Minimum Wage Poster

In addition, you must display the California Minimum Wage Order, which can be found on CalChamber’s California and Federal Labor Law posters.

• California and Federal Labor Law Posters

You must retain payroll records pertaining to employees for at least three (3) years.9 You must also provide a copy of payroll records to the employee upon the employee’s reasonable request.

Enforcement

The MWO is enforced by the city, which may elect to contract for enforcement services with a third party.10

An employee claiming harm from a violation of the MWO may bring an action against the employer in court and shall be entitled to all remedies available to correct the violation, including, but not limited to, back pay, reinstatement, injunctive relief, or civil penalties as provided herein.11 An employee who is a prevailing party in an action to enforce the MWO is entitled to an award of reasonable attorney fees, witness fees, and costs.12

Remedies for violations may include:

• Reinstatement;
• Back pay;
• Penalties of $50 owed to each employee for each day that the violation occurred;
• Interest on wages owed;
• Reimbursement of the city’s administrative costs of enforcement; and
• Attorneys’ fees and costs.

The city may also issue a civil penalty, payable to the city, in the amount $50 for each employee whose rights were violated, for each day that the violation occurred. This is in addition to the penalties payable to employees.13 The remedies, penalties and procedures are cumulative and are not intended to be exclusive of any other available rights established by law.

Retaliation

Employees who assert their rights under the MWO are protected from retaliation.14 An employer cannot discharge, reduce the compensation, or otherwise retaliate against any employee for making a complaint to the city, participating in any of the city’ s proceedings, using any civil remedies to enforce their rights, or otherwise asserting their rights. Within 120 days of an employer being notified of such activity, it is unlawful for the employer to discharge any employee who engaged in such activity unless the employer has clear and convincing evidence of just cause for such discharge.

Employers cannot fund minimum wage increases by reducing the wage rate paid to any employee or by increasing charges to them for parking, meals, uniforms or other such items.

1. Foster City Mun. Code, Ch. 5.73. (Foster City Ordinance No. 648.)

2. Foster City Mun. Code, Ch. 5.73.010 (D)

3. Foster City Mun. Code, Ch. 5.73

4. Foster City Mun. Code, Ch. 5.73.010 (C)

5. Foster City Mun. Code, Ch. 5.73.020 (A-D)

6. Foster City Mun. Code, Ch. 5.73.030 (A-B)

7. Foster City Mun. Code, Ch. 5.73.030 (A-B)

8. Foster City Mun. Code, Ch. 5.73.030 (A-B)

9. Foster City Mun. Code, Ch. 5.73.050 (E).

10.Foster City Mun. Code, Ch. 5.73.050 (A).

11. Foster City Mun. Code, Ch. 5.73.030 (A-B)

12. Foster City Mun. Code, Ch. 5.73.030 (A-B)

13. Foster City Mun. Code, Ch. 5.73.010 (C)

14. Foster City Mun. Code, Ch. 5.73.010 (D)