What does San José's Opportunity to Work Ordinance require?
San José's Opportunity to Work Ordinance applies to employers of 36 or more employees that are subject to the city's business license tax or keep a facility in San José41.
Before hiring new employees, subcontractors or temporary staff, they offer the additional hours to existing qualified part-time employees4, and use a transparent and nondiscriminatory process to share them out5.
The city minimum wage is $18.45 an hour in 2026 and $19.00 from January 1, 202762.
This text does not constitute legal advice. Obligations vary by establishment and change over time. Confirm yours with the San José Office of Equality Assurance, the California Labor Commissioner's Office or a qualified advisor.
Which dates matter in San José?
- The Opportunity to Work Ordinance takes effect
For employers with 36 or more employees4.
- City minimum wage: $18.45
The rate in force through 20266.
- City minimum wage: $19.00
The state minimum wage rises to $17.40 the same day; San José's rate is higher, and the higher local rate is the one paid278.
Past or upcoming as of November 12, 2026.
What changes in the week in San José?
Before you hire for more hours
The offer goes to existing employees who, in the employer's good faith and reasonable judgment, have the skills and experience to do the work5. Executive, administrative and professional employees are not covered by the ordinance9.
The employer does not have to offer hours that would be paid at time and a half or another premium rate under any law or union agreement, though it may10.
When you make the offer
The City's FAQ says the ordinance sets no timing requirements on the offer itself, and that employers should give part-time employees “a meaningful opportunity to respond” depending on the work11.
In payroll
The city minimum wage is $18.45 an hour in 2026 and $19.00 from January 1, 202762.
State minimum wages for some industries can be higher: fast food workers covered by the state law “must be paid at least $20.00 per hour”12, and certain health care workers have their own rates13. When requirements conflict, the Labor Commissioner says the employer follows “the stricter standard”14.
California's daily overtime also applies: past 8 hours in a workday at 1.5 times the regular rate, and past 12 at twice the regular rate15.
State paid sick leave applies to an employee who works for the same employer for 30 or more days within a year16. The employer must allow use of at least five days or 40 hours, whichever is more, and may cap accrual at 10 days or 80 hours, whichever is more1718.
With a union agreement
The FAQ says the ordinance's provisions may be waived in a bona fide collective bargaining agreement, in clear and unambiguous terms19.
Watch for
- Who counts toward 36. Individual employees, part-time and full-time. A chain not owned by a franchisee counts every location, in or outside San José; a franchisee counts every location it owns201.
- Hardship. The Office of Equality Assurance may grant a hardship exemption of up to twelve months to an employer that shows good faith steps and that full, immediate compliance would be impracticable, impossible or futile21.
- Public employers. The ordinance covers private and nonprofit employers, not government employers1.
What does California add in San José?
State law applies in the city as everywhere in California. Daily overtime starts after 8 hours in a workday, and double time after 12 hours15.
California daily overtime: 8 hours, 12 hours and the seventh day15
Meal and rest breaks, reporting time pay and the state's paid sick leave are on the California page.
California labor laws: what changes the schedule and the pay
What does an employer have to be able to show?
The Office of Equality Assurance says employers keep, in writing or electronically, for no less than four years3:
- Work schedules and employment and payroll records of current and former employees3.
- Copies of written offers of additional hours to current and former part-time employees3.
The City's FAQ lists civil penalties of $50.00 per day to each employee harmed among the remedies22.
What does the ordinance leave open?
How long the offer stays open. The FAQ says the ordinance places no timing requirements on the offer, and that employers should give “a meaningful opportunity to respond”11. What is meaningful for a given role is not defined. Confirm your practice with your counsel.
What do the City's texts say exactly?
Beginning March 13, 2017, Employers with 36 or more Employees and who are subject to the San Jose Business License Tax or who maintain a facility in San Jose must offer additional work hours to existing qualified part-time Employees before hiring new Employees including subcontractors or the use of temporary staffing services.
Office of Equality Assurance, OTW FAQ the employer's obligation
A1: Before hiring additional Employees or subcontractors, including hiring through the use of temporary services or staffing agencies, an Employer must offer additional hours of work to existing Employees who, in the Employer’s good faith and reasonable judgment, have the skills and experience to perform the work, and shall use a transparent and nondiscriminatory process to distribute the hours or work among those existing Employees.
Office of Equality Assurance, OTW FAQ who is covered
A2: The Ordinance requires employers of 36 or more employees to offer additional work hours to existing qualified part-time employees before hiring new employees including subcontractors or the use of temporary staffing services. […] This definition covers private and non-profit employers. This definition does not cover government employers.
Office of Equality Assurance, OTW FAQ counting to 36
A6: Yes. Employers must count individual Employees, both part-time and full-time. For a Chain business that is not owned by a Franchisee, the number of Employees shall be determined by the combined total number of Employees at every location of that Chain business, whether or not located within the City of San Jose. […] For a Franchisee, the number of Employees shall be determined by the combined total number of Employees at every location owned by that Franchisee and operated under the same Franchisee, whether or not located within the City of San Jose.
Office of Equality Assurance, OTW FAQ premium hours
A5: No. An Employer is not required to offer an Employee work hours if the Employer would be required to compensate the Employee at time-and-a-half or other premium rate under any law or collective bargaining agreement. However, an Employer is not prohibited from offering such work hours.
Office of Equality Assurance, OTW FAQ records
A7: Employers must retain the following records (either written and/or electronic) for no less than four years: […] Work schedules and employment and payroll records pertaining to current and former Employees; […] Copies of written offers to current and former Part-Time Employees for additional work hours; and
Office of Equality Assurance, OTW FAQ union waiver
However, under the San Jose Minimum Wage Ordinance (Section 4.100.050), the provisions of the Opportunity to Work Ordinance may be waived by a collective bargaining agreement. The Ordinance requires that the waiver must be in a bona fide collective bargaining agreement and must be in clear and unambiguous terms.
City of San José, minimum wage ordinance page the 2027 rate
Starting January 1, 2027, the City of Santa Jose’s minimum wage will increase from $18.45 (2026 minimum wage rate) to $19.00 per hour.
How does a system hold the hour rules?
In San José, California's hour limits land on the same schedule and the same timecard as the city's rules. This is how WorkAxle holds the hour limits:
- Daily and weekly hours, consecutive days and rest between shifts are set up as rules, each with its start date.
- While the schedule is built, the platform flags each shift that breaks one of those rules and names the rule. The supervisor decides.
- Each clock-in and clock-out is recorded with its time, and at the close of the period hours come out classified by your rules, ready for your payroll system.
The supervisor keeps the last word.
What can you check this week?
- Count your employees the way the FAQ counts them, part-time and full-time, across every location of a chain20.
- For the last time you hired or used a staffing agency in San José, find the written offer of hours to part-time staff3.
- Write down how offers of hours are shared out; the City's FAQ asks for a transparent and nondiscriminatory process5.
- Check each San José employee's rate against $19.00 from January 1, 2027, and against any higher state industry rate213.
Sending it to finance, operations or your counsel? The link opens this page, and the printed brief carries the rules, the dates and the sources.
This text does not constitute legal advice. Obligations vary by establishment and change over time. Confirm yours with the San José Office of Equality Assurance, the California Labor Commissioner's Office or a qualified advisor.
Frequently asked questions
What is San José's Opportunity to Work Ordinance?
It requires employers of 36 or more employees to offer additional work hours to existing qualified part-time employees before hiring new employees, subcontractors or temporary staffing1.
Who is covered by the Opportunity to Work Ordinance?
Employers with 36 or more employees that are subject to the San José business license tax or maintain a facility in San José4, private and nonprofit alike1.
Does San José require advance notice of schedules?
The Opportunity to Work Ordinance is about offering hours before hiring4. It is not a schedule-notice law like those of Los Angeles or San Francisco2324.
Do employers have to offer overtime hours to part-time employees in San José?
No. The employer does not have to offer hours that would be paid at time and a half or another premium rate, though it may10.
What is the minimum wage in San José in 2027?
$19.00 an hour from January 1, 2027, up from $18.45 in 20262. State rates for fast food and certain health care workers can be higher1312.
How long must San José employers keep Opportunity to Work records?
No less than four years, including schedules, payroll records and written offers of additional hours3.
https://www.workaxle.com/compliance-center/united-states/california/san-jose