Starting July 1, employees working in the hilly city of San Francisco must be paid $15 an hour. San Francisco’s new Consideration of Salary History ordinance will go into effect on July 1, 2018.
The Parity in Pay ordinance will prohibit employers from considering applicants’ current or past salaries when determining whether to extend an offer of employment and what pay to offer. It also prohibits employers from asking questions about an applicant's current or past salary, or disclose salary history without that employee’s authorization.
The new salary inquiry prohibitions are not unique to San Francisco. Recently, the state of California enacted a similar legislation that went into effect on January 1, 2018. San Francisco and Emeryville have the highest minimum wage in the Bay Area.
Employers must review whether or not these ordinances affect their workforce and ensure that they remain compliant starting July 1.
The new minimum wage increase isn’t enough. According to a new National Low Income Housing Coalition report, an individual making $14 an hour would need to work 218 hours per week to afford a 2-bedroom apartment in the city.
According to labor groups, minimum wage violations take away nearly $2 billion in earnings each year in the state of California.