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The city of Palo Alto (the city) enacted a minimum wage ordinance (the MWO) that requires you to pay any employee who works at least two hours in one calendar week within the geographic boundaries of the city at the local minimum wage rate (the Palo Alto minimum wage).
The MWO applies to your business if it is subject to Palo Alto's business registry requirements, if you conduct business in Palo Alto or if you maintain a business facility in Palo Alto.1 You are subject to Palo Alto's business registry requirement if you conduct any commercial enterprise, trade, calling, vocation, profession, occupation or other means of livelihood from a business located within Palo Alto.2
You can find more information regarding the MWO on the city's website. You may also contact the city at (650) 329-2671 or by email at complianceofficer@cityofpaloalto.org.
You can find the current Palo Alto minimum wage on the city's website.
A covered employee (employee) under the MWO is any employee who:
Employers must pay employees at least the Palo Alto minimum wage for each hour worked in Palo Alto. The Palo Alto minimum wage applies to employees working in Palo Alto, regardless of where the employer is located or whether the employee is a Palo Alto resident.
Employees cannot waive their right to receive at least the Palo Alto minimum wage, except through a valid collective bargaining agreement.5
You do not need to pay the Palo Alto minimum wage to individuals who are not entitled to the state minimum wage.6 For more information on these types of employees, see Minimum Wage.
You can find additional information regarding application of the MWO in a Frequently Asked Questions webpage.
The MWO requires you to post an official, city-provided notice, specifying the minimum wage and describing employee rights. The MWO states that the city will publish this notice in all languages spoken by more than five percent of the workforce in the city. You must display the notice in all languages spoken by at least 5 percent of the employees at the workplace or jobsite. The notices must be posted in a conspicuous place at all locations where employees work.7
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 in writing.8
State law also requires you to provide Wage and Employment Notice to Employees (Labor Code section 2810.5) at the time of hire to all non exempt employees that includes this information and meets the obligation under the MWO.9 More information about the notice can be found at New Employee Orientation.
You also are required to 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.10
If you do not keep adequate records documenting wages paid or you do not 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.
The MWO is enforced by the city.11 The city has identified the San Jose Office of Equality Assurance to investigate possible violations of the MWO.12 The Office of Equality Assurance enforces minimum wage ordinances for the cities of Belmont, Los Altos, Redwood City, San Jose, San Mateo, Santa Clara and Sunnyvale as well.
The city may conduct investigations and take administrative actions to enforce the MWO. If the city investigates whether the employer violated the MWO, the employer will be required to post a notice on a form provided by the city informing employees of the investigation.13 The city is required to make every effort to resolve complaints informally before initiating an enforcement action.14
If the city determines that an employer violated the MWO, the city may issue an administrative citation and a fine of $50 per day for each day or part of a day, and for each employee or person whose rights under the MWO were violated.15
The city also has the authority to take other enforcement actions, such as revoking or suspending permits or licenses, until the violation is remedied.16
If the city determines that an employer repeatedly violated the MWO, it may require the employer to post a public notice of the violations on a form determined by the city.17
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 employees or the public may file a civil lawsuit for any violation of the MWO.18
Remedies for violations of the MWO may include: reinstatement, back pay, penalties of $50 owed to each employee for each day that the violation occurred in addition to fines, interest on wages owed, reimbursement of the city's administrative costs of enforcement, and attorneys' fees and costs.19
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.
Employees who assert their rights under the MWO are protected against retaliation.20 For example, employees have the right to complain to their employer that they are not being paid the Palo Alto minimum wage; file formal complaints; inform other employees of their right to the Palo Alto minimum wage; or to assist other employees in asserting their rights.
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.21
1. Palo Alto Mun. Code secs. 4.62.020(c), 4.62.030(a)
2. Palo Alto Mun. Code sec. 4.60.020(a), (c)
3. Palo Alto Mun. Code sec. 4.62.030(b); city of Palo Alto Minimum Wage Ordinance webpage
4. Palo Alto Mun. Code secs. 4.62.020(b), 4.62.030(a)
5. Palo Alto Mun. Code sec. 4.62.050
6. Palo Alto Mun. Code secs. 4.62.020(b)(2), 4.62.030(a)
7. Palo Alto Mun. Code sec. 4.62.060(a), (b)
8. Palo Alto Mun. Code sec. 4.62.060(b)
9. Lab. Code sec. 2810.5
10. Palo Alto Mun. Code sec. 4.62.060(c)
11. Palo Alto Mun. Code sec. 4.62.080(a)
12. See city of Palo Alto Minimum Wage Ordinance webpage for additional information.
13. Palo Alto Mun. Code sec. 4.62.080(b)
14. Palo Alto Mun. Code sec. 4.62.080(d)
15. Palo Alto Mun. Code sec. 4.62.090(a); Minimum Wage Employer FAQs
16. Palo Alto Mun. Code sec. 4.62.090(d)
17. Palo Alto Mun. Code sec. 4.62.090(f)
18. Palo Alto Mun. Code sec. 4.62.090(b)
19. Palo Alto Mun. Code sec. 4.62.090(e)
20. Palo Alto Mun. Code sec. 4.62.070
21. Palo Alto Mun. Code sec. 4.62.070