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

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

You can find more information regarding the MWO on the city's website. You may also contact the City Manager’s Office by phone at (650) 802-4212 or by email at citymanager@cityofsancarlos.org.

Minimum Wage Rate

  • Effective January 1, 2026, the San Carlos minimum wage increased to $17.75 per hour, up from the 2025 rate of $17.32 per hour. This year’s increase and future annual increases are tied to the regional Consumer Price Index (CPI), up to 3.5 percent.2
  • The San Carlos 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 San Carlos minimum wage on the city's website, including Frequently Asked Questions (FAQs).

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 calendar week within the geographic boundaries of San Carlos for an employer, whether full or part-time; and
  • Is entitled to payment of a California minimum wage.3

You must pay employees at least the San Carlos minimum wage for each hour worked in San Carlos, not including tips or gratuities.4 The San Carlos minimum wage applies to employees working in San Carlos, regardless of where the employer is located or whether the employee is a San Carlos resident.5

Employees cannot waive their right to receive at least the San Carlos minimum wage, except through a valid bargaining agreement. 6 (Unlike many other local minimum wage ordinances, the language of the San Carlos MWO itself does not include a provision allowing for a waiver of rights through a valid collective bargaining agreement. However, guidance issued by the city indicates waiver through a valid collective bargaining agreement (CBA) is acceptable. Employers should consult with legal counsel before relying on a CBA waiver.)

You may not reduce the hourly wage to any employee or increase charges to employees for parking, meals, uniforms or other items.7

You do not need to pay the San Carlos minimum wage to individuals who are not entitled to the state minimum wage.8 For more information on these types of employees, see the HR Library's Minimum Wage.

The MWO includes “learners” under California law. Under the MWO, an employee who is a “learner” of any age, must be paid at least 85 percent of the applicable San Carlos minimum wage for the first 160 hours of employment. You must pay the full applicable San Carlos minimum wage for every hour worked beyond 160 hours.9

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 any workplace or job site where any employee works.10 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 and to each new employee at the time of hire.11

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

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.12 More information about the notice can be found on the HR Library's New Employee Orientation page.

You also are required to retain payroll records pertaining to employees for a period of three years. You must allow the city to access these records with appropriate notice and at a mutually agreeable time.13

If you do not keep adequate records documenting wages paid, or you do not allow reasonable 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 clear and convincing evidence to establish otherwise.14

Enforcement

The MWO is enforced by the city. The city may conduct investigations and take administrative actions to enforce the MWO, as well as make efforts to resolve complaints informally.15

In addition, aggrieved employees or the city may file a civil lawsuit for any violation of the MWO.16

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.17

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

The MWO makes it unlawful for an employer to discharge any employee within 120 days of the employee having asserted rights protected by the MWO, unless an employer has clear and convincing evidence of just cause for such discharge.19


1. San Carlos Mun. Code secs. 8.10.020(B), (C); 8.10.030(A)

2. San Carlos Mun. Code sec. 8.10.030(B)

3. San Carlos Mun. Code secs. 8.10.020(B), (C); 8.10.030(A)

4. San Carlos Mun. Code sec. 8.10.030(D)

5. San Carlos Mun. Code secs. 8.10.020(B), (C); 8.10.030(A); also see FAQs on the city webpage

6. See FAQs on the city webpage

7. San Carlos Mun. Code sec. 8.10.030(E)

8. San Carlos Mun. Code secs. 8.10.020(B), (C); 8.10.030(A)

9. San Carlos Mun. Code secs. 8.10.020(D); 8.10.030(C)

10. San Carlos Mun. Code sec. 8.10.040(B)

11. San Carlos Mun. Code sec. 8.10.040(B)

12. Cal. Lab. Code sec. 2810.5

13. San Carlos Mun. Code sec. 8.10.040(C)

14. San Carlos Mun. Code sec. 8.10.040(C)

15. San Carlos Mun. Code sec. 8.10.060; 8.10.070

16. San Carlos Mun. Code sec. 8.10.070(B)

17. San Carlos Mun. Code sec. 8.10.070(B), (E)

18. San Carlos Mun. Code sec. 8.10.050

19. San Carlos Mun. Code sec. 8.10.050(b)