San Francisco’s minimum wage rose 25 cents to $16.32 per hour Thursday after the latest annual increase tied to the Consumer Price Index.

The city’s voters in 2014 had approved a proposal to raise the minimum wage to $15 per hour, and it has risen annually since then as part of the ordinance to ensure wages keep up with inflation.

The federal minimum wage has stayed at $7.25 per hour since 2009, while California’s minimum wage is $14 per hour for employers with 26 or more people and $13 per hour for 25 or fewer.

Patrick Mulligan, director of the city’s Office of Labor Standards Enforcement, said:

“After a year that highlighted how much we all rely on essential workers, San Francisco knows that business stability and worker protections are not mutually exclusive.”

The city’s unemployment rate was at 5.1 percent in May, down from 13 percent at its height in April 2020 during the pandemic, city officials said.

More information about San Francisco’s minimum wage law can be found at https://sfgov.org/olse.

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