City of Santa Clara Passes Minimum Wage Ordinance

The City Council for the City of Santa Clara passed an increased minimum wage ordinance that will take effect on January 1, 2016.  The new minimum wage will increase from the current $9.00 per hour to $11.00 per hour.  The State of California has a mandated increase from $9.00 to $10.00 per hour on January 1, 2016 – this minimum wage would supercede that rate.  The ordinance, which was approved by the City Council on September 22, 2015, includes the following provisions:

  • The rate will be $11.00 an hour as of January 1, 2016.
  • The ordinance will apply to employers that maintain a place of business in Santa Clara and/or provide goods/services within city limits.
  • To prevent inflation from eroding its value, beginning on October 1, and each year thereafter, the Minimum Wage shall increase by an amount corresponding to the prior year’s increase, if any, in the cost of living.  The prior year’s increase in the cost of living shall be measured by the percentage increase, if any, as of August of the immediately preceding year over the level as of August of the previous year of the Consumer Price Index (Urban Wage Earners and Clerical Workers, U.S. City Average for All Items) or its successor index as published by the U.S. Department of Labor or its successor agency, with the amount of the Minimum Wage increase rounded to the nearest multiple of five cents. The adjusted Minimum Wage shall be announced by October 1 of each year, and shall become effective as the new minimum wage on January 1 of the following year.

The City of Santa Clara will be providing a wage information posting that you will need to have placed next to your California and Federal Employment posters.  When the City’s informational page is available, the Chamber will be sending out an email.  In the meantime, if you have any questions or comments, please submit them to minimumwage@santaclaraca.gov.

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