Petaluma Minimum Wage

Frequently Asked Questions

1. What is the Petaluma minimum wage?
   Petaluma has a local minimum wage that is higher than the State minimum wage. This minimum wage applies to hours worked within the city limits.  The Petaluma minimum wage for 2024 is $17.45 per hour and will be $17.97 per hour in 2025. The 2024 wage reflects an increase of 2.3% and the 2025 wage reflects an increase of 3% based on June prior year CPI-W, calculated using this table - CPI-W table.
2. Who is covered by or subject to the Petaluma minimum wage?
   This ordinance covers all employees who work at least 2 hours per week in the City limits and who qualify for the minimum wage according to the California Labor Code. Tips and benefits cannot be included when calculating the Petaluma minimum wage.The ordinance does not apply to work done outside the Petaluma City limits or to time an employee spends traveling through the city to get to another destination. All employers, except Federal, State, and County agencies, are subject to the Petaluma minimum wage.
3. How do commission earnings affect the Petaluma minimum wage?
   Commissions can be factored in when calculating the Petaluma minimum wage. Employers shall use State guidelines for calculating minimum wage for commissioned employees. The state minimum wage can be used to calculate wages for these employees, as long as their hourly wage is no less than the Petaluma minimum wage. Because this is a complex issue, we recommend you check with an attorney or a labor law expert.
4. Are there noticing requirements for employers?
   Similar to the State's wage requirements, the proposed Petaluma ordinance requires employers to inform employees of the local wage and their rights at the onset of their employment and on an annual basis.Employers also need to put up posters or flyers listing the current wage and employee rights. These flyers need to be in the languages spoken by at least 10 percent of the workers. Each year the City will make available a .pdf copy of a sample poster with updated wage information.
5. What rights do employees have with the Petaluma minimum wage?
   The Petaluma minimum wage ordinance gives employees, an employee representative, or any other person the right to report suspected violations. It also gives them the right to bring legal action against an employer. Finally, it discusses remedies if a violation is found.
6. Who should be contacted if an employee believes they are not being paid the correct wage?
   Employees who believe they are not being paid in accordance with the Petaluma Living Wage ordinance or the Petaluma Minimum Wage Ordinance should contact the City’s Economic Development Division at [email protected].
7. How do State Wage Orders Affect the Petaluma Minimum Wage?
   State Wage Orders regulate wages, hours, and working conditions of industries. Under these wage orders, certain types of employees must be paid a defined percentage over the state minimum wage. For example, auto technicians who bring their own tools must be paid twice the state minimum wage.The state minimum wage can be used to calculate wages for these employees, as long as their hourly wage is no less than the Petaluma minimum wage. Because this is a complex issue, we recommend you check with an attorney or a labor law expert.
8. How does the City enforce the Petaluma minimum wage?
   The City, rather than the State, is responsible for enforcing the proposed ordinance, just as it is responsible for enforcing any other law adopted by the City Council.The proposed ordinance gives the City the right to investigate suspected violations and to request employee records as part of its investigation.Other cities with similar ordinances have found that most violations are the result of an oversight by the employer or confusion about the types of employees covered, rather than an intentional effort to cheat employees. These cities have taken a conciliatory approach to correcting any employer errors.The City of Petaluma is following the conciliatory model as well.
9. What is the difference between the Petaluma Living Wage and the Petaluma Minimum wage?
   The Petaluma living wage ordinance applies to employees of the City and for-profit entities that contract with the City. The Petaluma Living Wage must be paid for hours worked on behalf of the City and/or work funded by City monies, regardless of where that work happens.The Petaluma minimum wage ordinance applies to anyone who qualifies as a non-exempt employee under State minimum wage laws, for hours worked within the Petaluma City limits. Most employers, including businesses and nonprofits, are subject to Petaluma’s minimum wage ordinance; the exceptions are federal and state agencies. Tips and benefits cannot be considered when calculating the Petaluma minimum wage.
10. Which wage applies if an employee is eligible for both the Petaluma Minimum Wage and the Petaluma Living Wage?
    Employers subject to Living Wage Ordinance and the Minimum Wage Ordinance are required to compensate employees at the higher applicable rate