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San Jose, CA Employment Preemption: Minimum Wage Preemption (2026)

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

Code chapter
SJMC Chapter 4.100
City rate (Jan 2024)
$17.95 per hour
Annual adjustment
CPI-indexed every January
Enforcement
Office of Equality Assurance
Tip credit
Not allowed in California

Summary

San Jose sets its own minimum wage above California's state floor. SJMC Chapter 4.100 requires covered employers to pay city-set rates that adjust each January based on the regional Consumer Price Index.

(B) If the rate of change in the averages of the most recent July 1 to June 30, inclusive, period over the preceding July 1 to June 30, inclusive, period for the United States Bureau of Labor Statistics nonseasonally adjusted U.S. CPI-W exceeds 7 percent in the first year that the minimum wage specified in subparagraph (F) of paragraph (1) of subdivision (b) is implemented, notwithstanding any other law, for employers with 25 or fewer employees the minimum wage shall be set equal to the minimum wage for employers with 26 or more employees, effective on the following January 1, and the minimum wage increase specified in subparagraph (F) of paragraph (2) of subdivision (b) shall be considered to have been implemented for purposes of this subdivision.

Source: SJMC Chapter 4.100 Minimum WageView official code

Full Breakdown

Under SJMC Chapter 4.100, employers with employees performing at least two hours of work per week within San Jose city limits must pay the city minimum wage. The rate reached $17.95 per hour on January 1, 2024, and rises each January based on the Bay Area Consumer Price Index for Urban Wage Earners. California Labor Code §1197 sets a statewide floor but does not preempt higher local wages. The city's Office of Equality Assurance investigates complaints, audits payroll records, and issues citations. Tipped workers receive the full wage; tip credits are not allowed under California law.

Violations & Fines

Civil penalties up to $50 per day per worker, restitution of unpaid wages, plus liquidated damages equal to back wages owed. Retaliation against complaining workers triggers separate fines and possible reinstatement orders under Chapter 4.100.

Frequently Asked Questions

Does the San Jose wage apply to part-time workers?
Yes. Any employee performing at least two hours of work in a week inside city limits is covered for those hours, regardless of where the employer's headquarters is located.
Can California override San Jose's higher wage?
No. Labor Code §1197 sets a floor, not a ceiling. Charter cities like San Jose may legislate above the state minimum under their police-power authority.

Sources & Official References

Other rules in San Jose

Worker Scheduling PreemptionSome RestrictionsPaid Leave PreemptionSome RestrictionsNoise Ordinances: Aircraft NoiseSignificant RestrictionsParking Rules: Curb Color RulesSome RestrictionsParking Rules: Preferential Parking DistrictsSignificant RestrictionsParking Rules: Driveway RulesSome RestrictionsParking Rules: Commercial & Oversized VehiclesSignificant RestrictionsFence Regulations: Fence Permit RequirementsSome Restrictions

All San Jose rules

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