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.
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.
Underpaying the MCO wage, denying paid time off, or retaliating against complainants exposes contractors to OLSE back-wage orders, contract debarment, and civil penalties.
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