The San Diego City Council’s Select Committee has advanced a proposal to establish a minimum wage of $25 per hour for hospitality workers, which is set to be brought to a full council vote. The wage increase, if approved, would apply to workers in various sectors, including amusement parks, hotels, and event centers, slated to take effect on January 1, 2026.
Currently, San Diego’s minimum wage is $17.25, exceeding the state minimum of $16.50. Councilman Sean Elo-Rivera, the proposal’s author, argues that the increase is essential, noting that the living wage in San Diego is estimated to be around $30.71 per hour according to the MIT Living Wage Calculator. This raises significant concerns about the financial viability of current wages for workers residing in the region.
Opposition from local businesses has been pronounced, with leaders from organizations such as the San Diego Regional Chamber of Commerce and the San Diego Padres expressing that the wage hike could lead to job losses and higher consumer prices. They advocate for a more gradual wage increase rather than the immediate leap proposed. Leaders on the council counter these claims, insisting that many larger corporations can absorb the wage increase without adverse effects on employment.
The context surrounding this proposal is critical, especially as California grapples with the repercussions of recent wage increases in the fast-food industry. The implementation of AB 1228, which raised the fast food minimum wage to $20 per hour, resulted in significant job losses and price hikes within just over a year. This serves as a cautionary tale for council members as they contemplate the broader economic implications of the hospitality wage increase.
As the council approaches the final vote, the outcome could have far-reaching impacts on both the local economy and the labor market, reflecting the ongoing tension between the need for livable wages and business viability in San Diego.