Skip to content

Back to Insights

California Compliance

What employment rules does San Jose add for employers?

By , J.D., MS-HRM

Published September 25, 2026. Last updated September 30, 2026.

What employment rules does San Jose add for employers?

Short answer

San Jose employers must pay at least $18.45 an hour in 2026, adjusted each January 1. Under the Opportunity to Work Ordinance, employers with 36 or more employees must offer additional hours to qualified existing part-time employees before hiring new staff, subcontractors or temps. San Jose has no local sick leave ordinance, so state law governs sick leave.

San Jose’s local rules are fewer than San Francisco’s, but one of them changes how a growing employer hires: before adding a new part-time person, a covered employer has to offer the hours to the part-time people already on staff.

What is San Jose’s minimum wage?

$18.45 an hour since January 1, 2026 (SFGate). It adjusts every January with inflation. Nearby Santa Clara County cities set their own rates: Mountain View is $19.70, Sunnyvale $19.50, and Santa Clara $18.70.

Who does the Opportunity to Work Ordinance cover?

Employers with 36 or more employees that hold a San Jose business license or maintain a place of business in the city (City of San Jose FAQ). For chains, headcount counts every location of the chain; for independent businesses, it counts employees working in San Jose.

A woman reviews documents on a tablet outdoors
Photo: Nappy. About the photos

What does it require?

  • Before hiring a new employee, subcontractor or temp, offer the additional hours to existing part-time employees (under 35 hours a week) who, in your good-faith judgment, have the skills to do the work.
  • Distribute the hours through a transparent, nondiscriminatory process, and give people a real chance to respond.
  • You do not have to offer hours that would put someone into overtime.
  • Post the city’s notice, and keep schedules, payroll records and written offers of hours for four years.
  • Do not retaliate. An adverse action within 90 days of an employee asserting these rights is presumed retaliatory.

What about sick leave?

San Jose has no local sick leave ordinance. State law applies: at least 40 hours or five days a year, accrued at one hour per 30 worked or front-loaded (Labor Code 246). The California leave laws guide covers it.

A woman works at her laptop at a desk
Photo: Nappy. About the photos

Where this fits

The simplest way to comply is a written hours-offer step in your hiring checklist: post the hours to current part-timers, give them a deadline, record who said yes, then open the requisition. The Bay Area hub shows how San Jose compares with the East Bay and San Francisco.

Looking for an HR consultant in San Jose? I work with South Bay employers remotely and on site, and the compliance check-up covers the Opportunity to Work Ordinance alongside state law.

McKinley holds a J.D. but is not a licensed attorney. Articles here are general information, not legal advice. For your specific situation, talk with an employment attorney.

Data current as of September 2026. Sources are linked where each figure appears.

Share this article

LinkedInXFacebookEmail

From the store

This article is general information, not legal advice. Laws change and every situation is different; for advice on yours, talk with an employment attorney.

Related questions