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San Jose, CA Payroll Rules

Local payroll and employment requirements that differ from or exceed California state law

Last updated: January 2025

Minimum Wage
$17.55
Paid Sick Leave
1 hour per 30 hours worked
Max: 72 hours

Minimum Wage

Current Rate$17.55/hour

Adjusted annually based on CPI. No tip credit. Applies to all employers with employees who work 2+ hours per week in San Jose.

Scheduled Increases

January 1, 2026$17.95/hour

Paid Sick Leave

Accrual Rate
1 hour per 30 hours worked
Maximum Accrual
72 hours
Maximum Annual Use
72 hours per year
Waiting Period
90 days before use

Exceeds California state law. Accrued sick leave carries over year to year up to the 72-hour cap.

Local Taxes

Business TaxVaries by business type

Business registration and tax required for all businesses operating in San Jose.

Additional Local Requirements

Opportunity to WorkEffective: 2017

Opportunity to Work Ordinance

Employers with 36+ employees must offer additional hours to existing part-time employees before hiring new workers.

Wage TheftEffective: 2015

Wage Theft Prevention

Enhanced penalties for wage theft. City can revoke business licenses for repeat violators.

Official Resources

Important Note

These local rules apply in addition to California state law. Employers must comply with whichever law provides greater protection to employees. Always verify current requirements with official sources.