Hotels and city contractors operating in Berkeley must pay the Living Wage set under BMC Chapter 13.27, which exceeds the state minimum and adjusts annually for inflation, plus health benefits or supplemental cash wages.
Berkeley adopted its Living Wage Ordinance in 2000 to cover city contractors, lessees on city property, and recipients of city financial assistance above a defined threshold. The ordinance sets a floor that exceeds California minimum wage, with a higher rate when employers do not provide qualifying health coverage. Hotels with city land-use entitlements, bond financing, or other qualifying assistance fall within scope, and the ordinance interacts with the separate Berkeley Minimum Wage covering all employers. Annual adjustments track the Bay Area consumer price index, and covered employers must post current rates conspicuously.
Underpayment, retaliation, or recordkeeping failures expose covered employers to back wages, liquidated damages, civil penalties, and possible debarment from future city contracts.
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