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The city of Santa Clara (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 Santa Clara minimum wage).
The MWO applies to your business if it is subject to Santa Clara’s business tax or if you maintain a business facility in Santa Clara.1 All professions, vocations, trades and activities are subject to the Santa Clara business tax.2 If you conduct any business in Santa Clara, even if you do not have an office or facility there, the MWO likely applies to your business.
You can find more information regarding the MWO on the city's webpage. You may also contact the city by phone at (408) 615-2210 or by email at minimumwage@santaclaraca.gov.
You can find the current Santa Clara minimum wage on the city's Minimum Wage Ordinance webpage.
A covered employee (employee) under the MWO is any employee who:
You must pay employees at least the Santa Clara minimum wage for each hour worked in Santa Clara. The Santa Clara minimum wage applies to employees working in Santa Clara, regardless of where the employer is located or whether the employee is a Santa Clara resident.
You may count commissions or guaranteed gratuities, not including discretionary tips, toward payment of the Santa Clara minimum wage as long as the commissions or guaranteed gratuities are earned and paid together to employees with their compensation. The hourly wage, including the commission or guaranteed gratuity, must not be less than the Santa Clara minimum wage.5
You may also reduce the wages paid employees to offset the cost for housing and meals if those offsets are otherwise permitted under state law.6 There must be a prior voluntary agreement between you and the employee for the offset to be allowed. More information regarding allowable offsets under state law can be found on the HR Library's Meals and Lodging page.
Employees cannot waive their right to receive at least the Santa Clara minimum wage, except through a valid collective bargaining agreement.7
You do not need to pay the Santa Clara 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 page.
You can find additional information regarding application of the MWO in a Frequently Asked Questions document.
The MWO requires you to post an official, city-provided notice specifying the minimum wage and describing employee rights. The city will publish this notice in the top three languages spoken in the city, which you must also display. The notices must be posted in a conspicuous place at all locations where employees work.9
In addition, you must display the California Minimum Wage Order, which can be found on CalChamber’s California and Federal Labor Law poster.
At the time of hire, you must provide employees your company's name, address and telephone number in writing.10
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.11 More information about the notice can be found on the HR Library's New Employee Orientation page.
You are also 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.12
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.13 The city has identified the city of San Jose’s Office of Equality Assurance to investigate possible violations of the MWO.14 The Office of Equality Assurance enforces minimum wage ordinances for the cities of Belmont, Los Altos, Palo Alto, Redwood City, San Jose, San Mateo, 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.15 The city is required to make every effort to resolve complaints informally before initiating an enforcement action.16
If the city determines that an employer violated the MWO, the city may issue an administrative citation and a fine of up to $50 for each day, or part of a day, and for each employee or person whose rights under the MWO were violated.17 The city also has the authority to take other enforcement actions, such as revoking or suspending permits or licenses, until the violation is remedied.18
In addition to the city’s authority to take action to enforce the MWO, aggrieved employees, an entity acting on behalf of a member who is an aggrieved employee, or persons or entities acting on behalf of the public may file a civil lawsuit for any violation of the MWO.19
Remedies for violations of the MWO may include: reinstatement; back pay; penalties owed to each employee in the amount of $50 per day 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.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.
Employees who assert their rights under the MWO are protected against retaliation.21 For example, employees have the right to complain to their employer that they are not being paid the Santa Clara minimum wage; file formal complaints; inform other employees of their right to the Santa Clara 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.22 The employer will have to offer evidence to rebut this presumption.
1. Santa Clara City Code secs. 3.20.030(c), 3.20.040
2. Santa Clara City Code secs. 3.40.040(b), 3.40.340
3. Santa Clara City Code sec. 3.40.040(b)
4. Santa Clara City Code secs. 3.20.030(b), 3.20.040(a)
5. Santa Clara City Code sec. 3.20.040(c)
6. Santa Clara City Code sec. 3.20.040(d)
7. Santa Clara City Code sec. 3.20.050
8. Santa Clara City Code secs. 3.20.030(b)(2), 3.20.040(a)
9. Santa Clara City Code sec. 3.20.060(a), (b)
10. Santa Clara City Code sec. 3.20.060(b)
11. Lab. Code sec. 2810.5
12. Santa Clara City Code sec. 3.20.060(c)
13. Santa Clara City Code sec. 3.20.080(a)
14. See City of Santa Clara Minimum Wage Ordinance webpage for additional information.
15. Santa Clara City Code sec. 3.20.080(b)
16. Santa Clara City Code sec. 3.20.080(d)
17. Santa Clara City Code sec. 3.20.090(a)(1)
18. Santa Clara City Code sec. 3.20.090(d)
19. Santa Clara City Code sec. 3.20.090(b)
20. Santa Clara City Code sec. 3.20.090(e)
21. Santa Clara City Code sec. 3.20.070(a)
22. Santa Clara City Code sec. 3.20.070(b)