San Francisco Minimum Wage Guide for Startup Founders

Overview

As a startup founder in San Francisco, understanding minimum wage requirements is essential for legal compliance and budgeting. This guide outlines the key information you need to know about minimum wage laws affecting your business.

Exempt vs. Non-Exempt Employees

There are two primary compensation structures to consider:

Option 1: Salaried (Exempt) Employees

For exempt employees (typically those in executive, administrative, or professional roles):

• Minimum annual salary requirement: $68,640 per year in California

• Exempt employees are not eligible for overtime pay

• No timesheet tracking required

Option 2: Hourly (Non-Exempt) Employees

For non-exempt employees:

• Minimum hourly wage: $16.50 per hour in San Francisco

• This equates to approximately $34,320 annually (based on 40 hours/week)

• Requires timesheet tracking for each pay period

• Overtime pay applies for hours worked beyond standard limits

Timesheet Management

If you choose to classify employees as non-exempt:

• Timesheets must be maintained for each pay period

• Every (payroll system) offers built-in functionality to track and process hourly work