Minimum Wage

Background

On February 5, 2019, the City Council approved a minimum wage ordinance that increases our local minimum wage to $15/hour two years earlier than mandated under State law. The ordinance incorporates feedback received from residents, the business community, non-profit organizations, and low-wage workers.

Large employers with 26 or more employees will be subject to a $13.50/hour minimum wage beginning July 1, 2019. On July 1, 2020, the local minimum wage for large employers increases to $15.00/hour. To prevent inflation from eroding its value, the minimum wage for large employers will be adjusted beginning on July 1, 2021, by the local consumer price index.

The City of Fremont understands the complexities involved in raising minimum wage especially as it relates to small businesses. Accordingly, Fremont’s minimum wage ordinance provides an additional year for small businesses to transition to the change. Small employers with 25 or fewer employees will continue to be subject to the State minimum wage until July 1, 2020, at which time the City’s higher requirement of $13.50/hour will become effective, increasing to $15.00/hour on July 1, 2021. On July 1, 2022, the small employer minimum increases to the large employer level. From that point on, both large and small employers will be subject to the same minimum wage increase defined by the local consumer price index.

To avoid a reduction in the valuable services they provide to the community, the minimum wage ordinance exempts employees of non-profit corporations.

Minimum Wage Increase Schedule

Effective Date (July 1)	Small Employers (25 or Fewer Employees)	Large Employers (26 or More Employees)
2019	$11.00	$13.50
2020	13.50	15.00
2021	15.00	15.25
2022	Large Employer Level - Increases based on CPI

Employer Requirements

In addition to paying all employees who perform work within the geographic boundaries of the city no less than the minimum wage for each hour worked, Fremont employers must:

Post the official City of Fremont Wage Bulletin in the top five languages spoken in the city in a conspicuous place at each work site
At the time of hire, provide the employee with a written copy of the employer's name, address, and telephone number. Example Notice to Employee form from the California Labor Commissioner's Office.
Document all hours worked by employees and keep records for at least four (4) years

Wage Bulletin

By April 1st or as soon as practicable, the City will publish and make available to employers a bulletin announcing the adjusted minimum wage rate for the upcoming year, which shall take effect on July 1st. Every employer shall post in a conspicuous place at any workplace or job site where an employee works the notice published each year by the city informing employees of the current minimum wage rate and of their rights under this chapter. Every employer shall post such notices in the top five languages spoken in the city based on the latest available census information for the city.

Payroll Records

Employers shall retain payroll records pertaining to employees for a period of four years, and shall allow the city access to such records, with appropriate notice and at a mutually agreeable time, to monitor compliance with the requirements of this chapter. Where an employer does not maintain or retain adequate records documenting wages paid or does not allow the city reasonable access to such records, the employee’s account of how much he or she was paid shall be presumed to be accurate, absent clear and convincing evidence otherwise. Failure to maintain such records or to allow the city reasonable access shall render the employer subject to administrative citation.