Local Minimum Wage Frequently Asked Questions
Frequently Asked Questions
Each employer shall give written notification to each current employee, and to each new employee at time of hire, of his/her/their rights under this ordinance. The notification shall be in English and other languages as provided in any implementing regulations, and shall also be posted prominently in areas at the work site where it will be seen by all employees. Every employer shall also provide each employee, at the time of hire, with the employer’s name, address, and telephone number in writing. Failure to post such notice shall constitute a violation of this Municipal Code. The City is authorized to prepare sample notices and employers’ use of such notices shall constitute compliance with this subsection.
The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for goods and services.
The CPI is used as an economic indicator measuring inflation, a deflator of economic series and as a means of adjusting dollar values. This relates to the minimum wage in that it adjusts consumers’ income payments to automatically provide cost-of-living wage adjustments. So, if the cost of living increases or decreases in a year, the local minimum wage will reflect that by adding a percentage to the $15 base rate in 2022 and beyond. The CPI will always be based on the previous year, calculated by using the August to August change. For example, if the cost of living increases by 5% in 2021, then on January 1, 2022, the minimum wage will be $15.00 per hour PLUS ($15 * 5%) , making the new minimum wage $15.75 per hour.
NOTE: A decrease in the CPI will not result in a decrease in the Minimum Wage.
As of January 1, 2020, California law requires the minimum wage for all industries to be no less than $12.00 per hour for businesses with fewer than 25 employees, and $13.00 per hour for businesses with 26 or more employees. The Federal minimum wage for covered nonexempt employees has been $7.25 per hour since July 24, 2009.
At the September 21, 2020 City Council meeting, the Burlingame City Council adopted the local minimum wage ordinance that increases the local minimum wage to $15.00 per hour for all Burlingame businesses beginning January 1, 2021. On January 1, 2022 and every year thereafter, the local minimum wage will be adjusted based on Consumer Price Index (CPI) percentage increases. A negative CPI will not lower the minimum wage.
The first phase of the ordinance goes into effect January 1, 2021: an increase to $15.00 per hour.
The second phase of the ordinance goes into effect January 1, 2022: an increase to $15 per hour plus CPI.
Each phase after 2022 will increase by the previous year's minimum wage plus any applicable CPI increases.
If you have any questions about this ordinance or would like additional information, please contact the City's Economic Development Division at:
City of Burlingame
Economic Development Division
501 Primrose Rd
Burlingame, CA 94010
Retaliation against employees who have reported a business for non-compliance is strictly prohibited.
It is considered retaliation if an employee is terminated within 120 days of when they exercise their protected rights, i.e. if they bring a claim against a business that is not in compliance. The Ordinance also protects people who mistakenly, but in good faith, claims a business is not compliant.
Failure to pay the minimum wage is a violation that, if happens, starts the day after the paycheck with the incorrect minimum wage was given, and continues to be in violation until the day before the correct minimum wage is paid in full. Along with civil action by an employee, entity, or entity acting on behalf of those whose rights were violated, the City may enforce its own codified penalties as necessary.