San Francisco, CA Hotels & Lodging: Hotel Living Wage (2026)
Key Facts
- Code reference
- Admin Code Ch. 12P
- Contract threshold
- $25,000 for-profit
- Paid time off
- 12 days minimum
- Indexed
- Annually to CPI
Summary
Administrative Code Chapter 12P (the Minimum Compensation Ordinance) requires city contractors and tenants on city property, including airport and convention hotels, to pay covered employees a living wage indexed annually well above the state minimum.
1182.12. (b) Notwithstanding subdivision (a), the minimum wage for all industries shall not be less than the amounts set forth in this subdivision, except when the scheduled increases in paragraphs (1) and (2) are temporarily suspended under subdivision (d). (1) For any employer who employs 26 or more employees: ... (F) From January 1, 2022, and until adjusted by subdivision (c) — fifteen dollars ($15) per hour. (2) For any employer who employs 25 or fewer employees: ... (F) From January 1, 2023, and until adjusted by subdivision (c) — fifteen dollars ($15) per hour. (3) For purposes of this subdivision, 'employer' means any person who directly or indirectly... employs or exercises control over the wages, hours, or working conditions of any person.
Full Breakdown
Chapter 12P of the Administrative Code applies to for-profit contractors with city contracts over $25,000 and non-profits over $50,000, plus tenants on city-owned property such as SFO concessionaires and Moscone Center vendors. Covered employees must be paid the Minimum Compensation Ordinance rate, set annually by OLSE and indexed to CPI. The 2026 MCO rate sits well above California's $16.50 minimum and SF's local $19.18 minimum wage. Contractors must also provide 12 paid days off and 10 unpaid days. OLSE investigates complaints and may suspend contracts. Hotel operators on city property and airport-area hospitality contractors are common covered employers.
Violations & Fines
Underpaying the MCO wage, denying paid time off, or retaliating against complainants exposes contractors to OLSE back-wage orders, contract debarment, and civil penalties.
Frequently Asked Questions
Does this apply to all SF hotels?
How does MCO compare to SF minimum wage?
Sources & Official References
Other rules in San Francisco
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