San Francisco's minimum wage is increasing from $19.18 to $19.61 per hour on July 1, 2026 — making it one of the highest municipal minimum wage rates in California. The increase is set by San Francisco's Minimum Wage Ordinance (Administrative Code Chapter 12R), which ties annual adjustments to the regional Consumer Price Index.
For businesses operating in San Francisco — restaurants, retailers, contractors, hotels, and any employer with workers performing services inside SF's city and county limits — July 1 is the compliance date. At $19.61/hr, San Francisco's wage floor exceeds even Sunnyvale's $19.50/hr rate, making it the highest in the Bay Area among jurisdictions tracked by the state.
- New Rate (July 1, 2026): $19.61 per hour
- Current Rate (through June 30, 2026): $19.18 per hour
- Increase: $0.43 per hour
- Effective Date: July 1, 2026
- Adjustment Mechanism: Annual CPI adjustment, effective every July 1
- Enforcement: SF Office of Labor Standards Enforcement (OLSE)
- Official Source: sf.gov
San Francisco's annual July 1 minimum wage adjustment — combined with its active OLSE enforcement office — makes compliance gaps unusually costly in the city. B&H offers Bay Area businesses a smarter approach: SurePayroll technology managed by a local accountant who monitors rate changes and updates your system before the effective date.
- Flexible service: one-time setup and training, or full weekly payroll management — your choice
- Physical check printing available for employees who prefer paper payment
- Direct line to Bill or Hannah — no chatbots, no hold queues, same-day response
- Automatic rate tracking: SF, Bay Area, California, and federal wage floors — we update them so you never have to chase a wage notice again
- Health insurance solutions: group medical, dental & vision plans with automatic paycheck deductions — small business rates through our SurePayroll broker network
- Pay-as-you-go workers' comp: no large upfront deposit — premiums calculated from your real payroll each cycle
- HR tools included: employee handbooks, background checks, and mobile PTO & sick time tracking built into the platform
- Employee deduction management: 401(k), health premiums, FSA/HSA, garnishments, and commuter benefits tracked and reconciled every pay cycle
- Year-end tax benefit for your employees: employees of B&H payroll clients are eligible for a special discount on personal tax return filing — a perk that costs you nothing and builds real staff loyalty
Don't Wait Until After July 1
SF's OLSE actively investigates wage complaints. A missed rate increase that isn't corrected until after enforcement contact creates back-pay liability plus penalties. Call B&H now for a free 10-minute payroll evaluation before the July 1 deadline.
Call 408-256-0339How San Francisco's Minimum Wage Ordinance Works
San Francisco enacted its local minimum wage ordinance in 2004, becoming one of the first cities in the nation to set a wage floor above the state rate. The ordinance (Administrative Code Chapter 12R) established a minimum wage and required annual CPI-indexed adjustments, effective July 1 of each year.
The adjustment amount is calculated using the CPI for All Urban Consumers in the San Francisco–Oakland–Hayward metropolitan area, as published by the U.S. Bureau of Labor Statistics. The San Francisco Office of Labor Standards Enforcement (OLSE) announces the new rate each spring before the July 1 effective date.
Note: San Francisco also has a separate Minimum Compensation Ordinance covering employees of city contractors and tenants, which sets a higher rate than the general minimum wage. Businesses with SF government contracts should verify which ordinance applies to their workers.
Who Must Comply
The San Francisco Minimum Wage Ordinance applies to any employer that employs an employee who performs at least two hours of work per week within San Francisco city and county limits. This broad definition captures:
- SF-based businesses of any size
- Out-of-city businesses that send workers into SF to perform services
- Contractors, cleaning companies, security firms, delivery services, and others with workers doing regular work in the city
If your workers cross into San Francisco to perform services — even for a couple of hours each week — those hours must be compensated at the SF minimum wage rate.
The Rate History
| Effective Date | San Francisco Minimum Wage | CA State Minimum Wage |
|---|---|---|
| July 1, 2023 | $18.07/hr | $15.50/hr |
| July 1, 2024 | $18.67/hr | $16.00/hr |
| July 1, 2025 | $19.18/hr | $16.50/hr |
| July 1, 2026 (upcoming) | $19.61/hr | $16.90/hr |
Posting Requirements
San Francisco employers covered by the Minimum Wage Ordinance must post the OLSE's official minimum wage notice in a conspicuous location accessible to all employees. The OLSE provides posters in multiple languages. Obtain the current 2026 notice (reflecting the $19.61 rate effective July 1) from:
- The OLSE website at sf.gov/information--minimum-wage-ordinance
Update your posted notice on July 1. Displaying the outdated $19.18 rate after the effective date constitutes a violation.
Enforcement: SF Office of Labor Standards Enforcement
The San Francisco OLSE is one of the most active wage enforcement agencies in California. The office investigates complaints, conducts audits, and can assess back wages plus penalties. Employees who file wage complaints are protected from retaliation, and the OLSE takes retaliation claims seriously.
Key OLSE enforcement powers include:
- Ordering payment of unpaid wages plus interest
- Assessing civil penalties for violations
- Revoking or suspending SF business registrations for repeat violations
- Publishing names of noncompliant employers
The combination of a very high wage floor and aggressive enforcement makes SF minimum wage compliance non-negotiable for businesses operating in the city.
What SF Employers Should Do Before July 1
- Update your payroll system to $19.61 effective July 1. If your system doesn't update automatically, make the change manually no later than June 30 so the first pay period beginning on or after July 1 uses the new rate.
- Review all hourly workers in SF. Any employee at the current $19.18 rate needs to be brought up to $19.61. Check for any workers below $19.61 — including part-time and occasional workers who meet the two-hour-per-week threshold.
- Download and post the updated OLSE notice. Replace any posted notices showing the $19.18 rate on July 1. If you have multilingual employees, post in their languages — OLSE provides notices in multiple languages.
- Check out-of-city workers who perform SF services. If you're based in the South Bay or East Bay and send workers to SF job sites, verify those hours are compensated at the SF rate.
- Review service contracts involving SF government. If your business has SF city contracts, verify whether the Minimum Compensation Ordinance (MCO) applies — it sets a higher rate than the general minimum wage.