What Employers Need to Know

No, the Redwood City minimum wage ordinance does not exempt small businesses of any size. All businesses operating within Redwood City or maintains a physical facility within Redwood City must pay employees who work two or more hours per week the local minimum wage for each hour worked within the geographic boundaries of Redwood City.

No, non-profit organizations are not exempt from the minimum wage requirements.

Maybe. Under California Industrial Welfare Commission Order No. 4-2001, a learner is defined as “an employee during their first 160 hours of employment in an occupation in which they have no previous similar or related experience.”. If your employee does meet that definition, then you can pay them no less than 85% of the Redwood City minimum wage ($15.85) for the first 160 hours of work. After 160 hours of work, you must pay the Redwood City Minimum Wage.

The learner provision does not apply to the higher industry-specific minimum wages. Fast food workers and certain health care workers have higher minimum wage requirements under state law. Information about these wages is available on the California Labor Commissioner’s website (www.dir.ca.gov/dlse).

If you have any questions about how much to pay your employees, please call the Labor Advice Hotline at 1-866-870-7725.

No, only employees who work within the geographic boundaries of Redwood City are subject to the City’s minimum wage. Employees working outside city limits are not covered by this ordinance.

Yes, any employee who works within the geographic boundaries of the Redwood City is subject to the City of Redwood City’s Minimum Wage Ordinance.

First, the City publishes official notices in three languages on the Minimum Wage website. Employers must post the new wage rate and bulletin in their workplace, in a location that employees can easily see. All employees must be able to read and understand the rate, so posting in all available languages is recommended. 

Second, employers are required to retain payroll records of all employees for a period of three years and provide the City or its designee access to those records, when requested, to monitor compliance with the requirements of the ordinance. If the employer does not retain these records, the employee’s account of how much they were paid will be assumed to be correct.

The City has the authority to inspect workplaces, interview people, and request the City Attorney to subpoena books, papers, records or other items relevant to the enforcement of the minimum wage.

No, an employer may not use fringe benefits such as health insurance, vacation, sick leave or other benefits to offset or use as a credit towards the employer’s obligation to pay the City minimum wage.

No, tips and gratuity are not considered a part of the minimum hourly wage rate and may not offset the hourly wage. In 2026, tipped workers will earn $18.65 plus tips.

Failure to pay the minimum wage is a violation that, if it happens, starts from the date immediately following the date the wages were due and continues until the date immediately preceding the date wages are 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 also issue fines of up to $50 per day per employee who did not receive the accurate minimum wage. The City may also issue an administrative compliance order and may initiate civil action itself. 

There is a rebuttable presumption of retaliation if an employee is terminated within 120 days of when they exercise their protected rights, e.g.  if they bring a claim against a business that is not in compliance. The retaliation provision of the Ordinance also protects people who mistakenly, but in good faith, claim a business is not compliant. 

If there are repeat violations, the City may require the employer to post public notice (in a form determined by the City) of their failure to comply. 

It likely means you don’t have a business license, or the address associated with your business license wasn’t updated. All businesses operating in Redwood City are required to apply for a business license. Some businesses, defined in the Redwood City Municipal Code, are exempt from the tax, but should still register to be included in the annual mailings for minimum wage and receive other important information from the City. To ensure you receive next year’s notice, register or update your business license. All information about business licenses, including FAQs and contact information, can be found on this page: Business Licensing.