The city of Petaluma (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 of Petaluma at the local minimum wage rate (the Petaluma minimum wage).1

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

You can find more information regarding the MWO on the city's webpage. You may also contact the city of Petaluma Economic Development Division at econdev@cityofpetaluma.org.

Minimum Wage Rate

The schedule of minimum wage increases is different depending upon how many employees you employ. The number of employees is determined by the total number of employees you have at all locations, not just Petaluma-based employees, and includes full-time, part-time, and temporary employees.2

  • Effective January 1, 2026, the Petaluma minimum wage increased to $18.31 per hour, up from the 2025 rate of $17.97 per hour. This year's increase and future increases are tied to the Regional Consumer Price Index.3
  • The Petaluma 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 Petaluma minimum wage on the city's website.

Coverage and Eligibility

A covered employee (employee) under the MWO is any employee, whether adult or minor, who:

  • Performs at least two hours of work in a particular week in Petaluma, whether full or part-time; and
  • Is entitled to payment of a California minimum wage.4

You must pay employees at least the Petaluma minimum wage for each hour worked in Petaluma, not including tips and gratuities. The Petaluma minimum wage applies to employees working in Petaluma, regardless of where the employer is located or whether the employee is a Petaluma resident.5 Employees cannot waive their right to receive at least the Petaluma minimum wage, except through a valid collective bargaining agreement.6

You may not reduce the hourly wage to any employee or increase charges to employees for parking, meals, uniforms or other items, to pay for the costs of the increased hourly wage imposed by the MWO.7

Time spent in Petaluma for the sole purpose of traveling through the city from a location outside the city to a destination outside the city, with no employment-related stops in the city is not covered by the MWO. Stops for refueling or personal meals or errands are not considered employment-related stops.8

You do not need to pay the Petaluma minimum wage to individuals who are not entitled to the state minimum wage.9 For more information on these types of employees, see the HR Library's Minimum Wage page.

The MWO includes “learners” under California law. Under the MWO, and employee who is at least 14 but not older than 17 years of age and who is a “learner” under California law, must be paid at least 85 percent of the applicable Petaluma minimum wage for the first 160 hours of employment. You must pay the full applicable Petaluma minimum wage for every hour worked beyond 160 hours.10

You can find additional information regarding application of the MWO on the city’s Frequently Asked Questions section of its webpage.

Posting, Notice and Recordkeeping Requirements

The MWO requires you to post official, city-provided notice specifying the minimum wage and describing employee rights under the MWO. The notice must be posted in a conspicuous place at each workplace or job site where any employee works.11 The notice must be in all languages spoken by more than 10 percent of your employees. In addition to posting the notice prominently at each workplace or job site, you must provide a copy of the written notice to each current employee within one week of the MWO taking effect, and to each new employee within one week of the start of each new employee’s employment.12

Also, 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, and annually, you must provide employees a written notice with your company’s name, address and telephone number, and the name and contact information for an employer representative responsible for inquiries regarding compliance with the MWO.13 The city offers a sample letter for this purpose.

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 nonexempt employees that includes this information and meets the obligation under the MWO.14 For more information about this notice, see the HR Library's New Employee Orientation page.

You also are required to retain records of each employee’s name, hours worked and pay rate for a period of three years. You must provide the employee or the employee’s representative a copy of these records upon request during normal business hours.15

If you do not keep adequate records documenting wages paid, or you do not allow access to such records, the employee’s account of how much they were paid will be presumed to be accurate. You will have to offer evidence to rebut this presumption.16

Enforcement

The MWO is enforced by the city.17 The city may conduct investigations and take administrative actions to enforce the MWO.18

In addition, aggrieved employees or the city may file a civil lawsuit for any violation of the MWO.19

Remedies for violations may include: reinstatement; back pay; penalties of $50 owed to each employee for each day or portion of the 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.20

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 from retaliation.21 For example, employees have the right to complain to their employer that they are not being paid the Petaluma minimum wage; file formal complaints; inform other employees of their right to the Petaluma minimum wage; or to assist other employees in asserting their rights.

If an employer takes adverse action against an employee within 120 days after the employee asserted rights protected by the MWO, it will be presumed the action was retaliation. The employer will have to offer evidence to rebut this presumption.22

Employees who are found to have been unlawfully retaliated against can recover triple times the wages lost due to any violation.23


1. Petaluma Municipal Code secs. 8.35.010-8.35.030

2. Petaluma Municipal Code sec. 8.35.030(F); also see Frequently Asked Questions on the city of Petaluma’s webpage

3. Petaluma Municipal Code sec. 8.35.030(C), (D)

4. Petaluma Municipal Code sec. 8.35.010

5. Petaluma Municipal Code secs. 8.35.010, 8.35.030(G)

6. Petaluma Municipal Code secs. 8.35.040, 8.35.050

7. Petaluma Municipal Code sec. 8.35.060(B)

8. Petaluma Municipal Code sec. 8.35.020

9. Petaluma Municipal Code sec. 8.35.010

10. Petaluma Municipal Code secs. 8.35.010, 8.35.030(E)

11. Petaluma Municipal Code sec. 8.35.080(B)

12. Petaluma Municipal Code sec. 8.35.080(A)

13. Petaluma Municipal Code sec. 8.35.080(C)

14. Cal. Lab. Code sec. 2810.5

15. Petaluma Municipal Code sec. 8.35.080(D)

16. Petaluma Municipal Code sec. 8.35.080(D)

17. Petaluma Municipal Code sec. 8.35.070

18. Petaluma Municipal Code sec. 8.35.070(C)

19. Petaluma Municipal Code sec. 8.35.070(B)

20. Petaluma Municipal Code sec. 8.35.070(D)

21. Petaluma Municipal Code sec. 8.35.060

22. Petaluma Municipal Code sec. 8.35.060

23. Petaluma Municipal Code sec. 8.35.070(D)(4)