The city of Milpitas (the city) enacted a minimum wage ordinance (the MWO) that requires you to pay any employee who works at least two hours in a calendar week within the geographic boundaries of the city at the local minimum wage rate (the Milpitas minimum wage).

The MWO applies to your business if it is subject to Milpitas’ business license requirements, or if you maintain a business facility in Milpitas.1 You can find more information regarding the MWO on the city’s website.

Read about the July 1, 2026, minimum wage increase.

Minimum Wage Rate

  • Effective July 1, 2026, the Milpitas minimum wage is $18.50 per hour.

Future rate increases will be made annually based on the Regional Consumer Price Index (not to exceed 5 percent), or the state minimum wage, whichever is higher.2

  • The Milpitas 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. 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 Milpitas minimum wage on the city’s website.

Coverage and Eligibility

A covered employee (employee) under the MWO is any employee who:

  • Performs at least two hours of work in a calendar week within the geographic boundaries of the city of Milpitas; and
  • Is entitled to payment of a minimum wage under California law or participates in a welfare-to-work program.3

You must pay employees at least the Milpitas minimum wage for each hour worked in the city.

You may count commissions or guaranteed gratuities, but not discretionary tips, toward the payment of the Milpitas minimum wage as long as the commissions or guaranteed gratuities are earned and paid together with other compensation to the employee and are equal to or greater than the Milpitas minimum wage. For each pay period, employers must pay at least the hourly minimum wage.4

You may also offset a portion of the Milpitas minimum wage for housing and meal costs, if otherwise allowed under state minimum wage law. You and the employee must have a prior voluntary agreement for the offset to be allowed.5 For more information, see the HR Library’s Meals and Lodging page.

You do not need to pay the Milpitas minimum wage to individuals who are not entitled to the state minimum wage. For more information on these types of employees, see Minimum Wage

Posting, Notice and Recordkeeping Requirements

The MWO requires you to post official, city-provided notices specifying the minimum wage and describing employees’ rights under the MWO. The city has issued two official notices that must be posted: the Minimum Wage Notice and the Milpitas Workers Know Your Rights notice. The city has issued the notices in English, Chinese and Vietnamese, which you must display. The notices must be posted in a conspicuous place at any workplace or job site where any employee works.6

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

At the time of hire, you must provide employees a written notice with your company’s name, address and telephone number.7

State law also requires you to provide the Wage and Employment Notice to Employees (Labor Code section 2810.5) at the time of hire to all nonexempt employees that includes this information and meets the obligation under the MWO.8 For more information about this notice, see the HR Library’s New Employee Orientation page.

You must retain payroll records pertaining to employees for a period of four years. The city must be permitted access to these records with appropriate notice and at a mutually agreeable time.9

If you don't keep adequate records documenting wages paid or you don't allow the city reasonable access to payroll records, the employee’s account of how much they were paid will be presumed to be accurate. The employer will have to offer evidence to rebut this presumption.10

Enforcement

The city enforces the MWO. Individuals may report suspected violations of the MWO to the city. The city may conduct investigations and take administrative actions to enforce the MWO. If the city investigates whether an employer violated the MWO, the employer will be required to post a notice or otherwise notify employees of the investigation, using a form provided by the city. The city is required to make every effort to resolve complaints informally before initiating an enforcement action.11

If the city determines that an employer violated the MWO, the city may issue an administrative citation for each violation and for each employee or person whose rights under the MWO were violated. Fine amounts are $100 for the first violation, $200 for the second violation and $500 for additional violations within the same year. The city also has the authority to take other enforcement actions, such as revoking or suspending permits or licenses, until the violation is remedied.12

In addition, aggrieved employees, the city, an entity acting on behalf of a member who is an aggrieved employee, or an entity or person acting on behalf of the public, may file a civil lawsuit for any violation of the MWO.13

Remedies for violations of the MWO may include: reinstatement; back pay; interest on wages owed; reimbursement of the city’s administrative costs of enforcement; and attorneys’ fees and costs. 14

The California Labor Commissioner also has the authority to investigate and enforce local minimum wage and overtime provisions, including such provisions in the MWO, and to issue citations and penalties against employers for violations. However, the Labor Commissioner and the city cannot both cite the employer for the same violation.

Retaliation

Employees who assert their rights under the MWO are protected against retaliation. For example, employees have the right to complain to their employer that they are not being paid the Milpitas minimum wage; file formal complaints; or to assist other employees in asserting their rights.15

If an employer takes adverse action against an employee within 90 days after the employee asserted rights protected by the MWO, the employer’s action will be presumed to be retaliatory. The employer will have to offer evidence to rebut this presumption.16


1. Milpitas Mun. Code sec. III-31-3.00(c)

2. Milpitas Mun. Code sec. III-31-4.00

3. Milpitas Mun. Code sec. III-31-3.00(b)

4. Milpitas Mun. Code sec. III-31-4.00(c)

5. Milpitas Mun. Code sec. III-31-4.00(d)

6. Milpitas Mun. Code sec. III-31-7.00

7. Milpitas Mun. Code sec. III-31-7.00(b)

8. Lab. Code sec. 2810.5

9. Milpitas Mun. Code sec. III-31-7.00(c)

10. Milpitas Mun. Code sec. III-31-7.00(c)

11. Milpitas Mun. Code sec. III-31-9.00 (a), (b), (d)

12. Milpitas Mun. Code secs. III-31-10.00(a),(d); I-21-1.04(A)

13. Milpitas Mun. Code sec. III-31-10.00(b)

14. Milpitas Mun. Code sec. III-31-10.00(e)

15. Milpitas Mun. Code sec. III-31-8.00(a)

16. Milpitas Mun. Code sec. III-31-8.00(b)