Effective April 1, 2023, the county of San Mateo (the county) enacted a minimum wage ordinance (MWO) that requires employers who maintain a facility in the unincorporated areas of San Mateo County to pay any employee who works at least two hours in one calendar week within the county the local minimum wage rate (the San Mateo County minimum wage). This MWO does not apply in the city of San Mateo, which has its own MWO.
You can find more information regarding the MWO, including Frequently Asked Questions, on the county's webpage. You may also contact the county by phone at (650) 363-4000.
Beginning on January 1, 2024,3 and each year thereafter, the county minimum wage will be increased by whichever is less between a 3.5 percent raise or a percentage amount equal to the prior year’s increase, if any, in the CPI-W.4 A change to the county minimum wage is calculated by using the preceding August to August change in the CPI-W to calculate the annual increase. The hourly rate is not reduced by a decrease in the CPI and in no event will the county minimum wage be decreased.
You can find the current San Mateo County minimum wage on the county’s website.
The county MWO only applies to businesses geographically located in the unincorporated areas of the county.5 However, individual jurisdictions within San Mateo County may have their own wage rules.6 State and federal agencies are not required to pay the county minimum wage when the work performed is related to their government function.7
A covered employee (employee) under the MWO is any employee who:
You must pay employees at least the San Mateo County minimum wage for each hour worked in the county, not including tips and gratuities.9
The MWO applies to undocumented workers in unincorporated areas of San Mateo County, whether or not they are legally authorized to work in the United States. Incorporated cities must also abide by the state minimum wage unless their city has also increased their minimum wage.
The MWO includes “learners” under California law.10 Under the MWO, an employee who is a “learner” of any age must be paid at least 85 percent of the applicable San Mateo County minimum wage for the first 160 hours of employment. You must pay the full applicable county minimum wage for every hour worked beyond 160 hours.11
You may not reduce any employee’s hourly wage or increase charges to employees for parking, meals, uniforms or other items, or decrease benefits to employees to pay for the costs of the increased hourly wage imposed by the MWO.12
Employees cannot waive their right to receive at least the San Mateo County minimum wage, except through a valid collective bargaining agreement. For the waiver to be valid, the following requirements must be met:
The MWO requires you to post a notice specifying the minimum wage and describing employee rights under the MWO prominently in areas at the work site where it can be seen by all employees. Covered employers must give written notification of the rights under the MWO to each current employee and new employee at the time of hire.13
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 your company's name, address and telephone number in writing.14
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.15 More information about the notice can be found on 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 a copy of these records upon request.16
Currently, the California Labor Commissioner’s Office enforces the county's MWO. The California Labor Commissioner has the authority to investigate and enforce local minimum wage and overtime provisions, and to issue citations and penalties against employers for violations.
Remedies include, but are not limited to, filing a complaint with the California Labor Commissioner’s Office, a private civil action, and/or enforcement by the county or by contract with another agency on behalf of the county. The prevailing party in a successful private action may recover attorneys’ fees and costs from the other party.17
Employees who assert their rights under the MWO are protected from retaliation.18 This means an employer shall not discharge, reduce the compensation of or otherwise retaliate against an employee for making a complaint, filing a civil action or otherwise asserting rights under the MWO. An employer may not discharge an employee within 120 days after the employer was notified that the employee asserted rights protected by the MWO, unless the employer has clear and convincing evidence of just cause for the discharge.19
1. San Mateo County Ordin. Code chs. 5.158.020, 5.158.040; Frequently Asked Questions on San Mateo County website
2. Frequently Asked Questions
3. San Mateo County Ordin. Code ch. 5.158.040
4. San Mateo County Ordin. Code ch. 5.158.040
5. Frequently Asked Questions
6. Frequently Asked Questions
7. San Mateo County Ordin. Code ch. 5.158.030(c)
8. San Mateo County Ordin. Code ch. 5.158.020 (a)
9. San Mateo County Ordin. Code ch. 5.158.030 (a); Frequently Asked Questions
10. San Mateo County Ordin. Code ch. 5.158.020(b)(2)
11. San Mateo County Ordin. Code ch. 5.158.030 (b)
12. San Mateo County Ordin. Code ch. 5.158.030 (d)
13. San Mateo County Ordin. Code ch. 5.158.050(a)
14. San Mateo County Ordin. Code ch. 5.158.050(b)
15. Lab. Code sec. 2810.5
16. San Mateo County Ordin. Code ch. 5.158.080
17. San Mateo County Ordin. Code ch. 5.158.090
18. San Mateo County Ordin. Code ch. 5.158.070 (a)
19. San Mateo County Ordin. Code ch. 5.158.070 (b)