Understanding the Minimum Compensation Ordinance

Most City contractors and tenants (including at the Airport) must provide their covered employees with (a) no less than the MCO hourly wage in effect; (b) 12 paid days off per year (or cash equivalent); and (c) 10 days off per year without pay per year.

The Minimum Compensation Ordinance (MCO) covers most City service contractors as well as tenants at the San Francisco International Airport.  The law generally requires covered employers to provide to their covered employees:

1.  No less than the MCO hourly wage in effect;
2.  12 paid days off per year (or cash equivalent); and
3.  10 days off without pay per year.

 

2022 Minimum Compensation Rates: published July 1, 2022
     For-Profit: $19.15
     Non-Profit: $17.90
     Public Entities: $18.75

2021 Minimum Compensation Rates: published July 1, 2021
     For-Profit: $18.55
     Non-Profit: $17.34
     Public Entities: $18.00

Poster and Forms

MCO Poster - Must be displayed at each workplace.

MCO Know Your Rights - Employers must maintain copies signed by covered employee.

MCO Subcontractor Information Form - This form must be filled out by the Prime Contractor, who is responsible for the Subcontractor's Compliance.

Legal Authority

The San Francisco Board of Supervisors passed the Minimum Compensation Ordinance in August 2000.

  MCO Rules: OLSE released new  Rules Implementing the Minimum Compensation Ordinance on March 2, 2020.  The Rules took effect on July 1, 2020.

  • The new MCO Rules replace the  prior MCO Regulations, issued by the Office of Contract Administration in 2002

Resources

Complete MCO/HCAO Resource packets to download

    ​MCO Nonprofit Working Group: Report, Findings, & Recommendations

    Historical Minimum Compensation Wage Rates

    For City Departments

    The following forms may be found on the City's Intranet:

    • MCO Form P-360 Exemption & Waiver
    • HCAO Form P-365 Exemption & Waiver

    Videos about San Francisco labor laws

    Contact us

    If you have any questions about your rights or responsibilities, contact us: 415-554-7903 or mco@sfgov.org.

    You can file a complaint if you believe your rights have been violated.

    Last updated December 19, 2022