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Palo Alto's Minimum Wage to Increase in New Year

Palo Alto's Minimum Wage to Increase in New Year

The New Year will bring another minimum wage increase in Palo Alto, raising it from the current rate of $12 per hour to $13.50 per hour beginning Jan. 1. The next increase will also be by $1.50 in 2019 when it will reach $15. After 2019, increases in the minimum wage will be based on the Consumer Price Index, a measure of inflation.

Palo Alto is one of 13 Santa Clara County cities that followed the Cities Association of Santa Clara County recommendation to phase in minimum wage increases, in a three-step process over three years. Council unanimously approved the minimum wage increase in September 2016.

The state's minimum wage is currently $10.50 per hour and will increase to $11 per hour on Jan. 1, with a timetable to reach $15 by 2022 or 2023, depending on the business size.

Palo Alto’s Minimum Wage Ordinance applies to all employees who work two hours per week within Palo Alto and takes precedence over the state’s minimum wage for qualifying employees in Palo Alto. For more information on the minimum wage, including employee rights and a list of employer FAQs, click here.

Last Updated: December 28, 2017