San Diego’s minimum wage is set to increase to $17.25 per hour starting January 1, 2025, surpassing California’s state minimum wage.
At a Glance
- San Diego’s minimum wage will rise to $17.25 per hour in 2025
- The increase is part of the Earned Sick Leave and Minimum Wage Ordinance
- Employees can accrue up to 40 hours of sick leave annually
- The ordinance applies to all industries with no exceptions
- Employers must post updated minimum wage notices at workplaces
San Diego Leads in Wage Increases
San Diego is set to implement a significant minimum wage increase to $17.25 per hour starting January 1, 2025. This raise, mandated by the city’s Earned Sick Leave and Minimum Wage Ordinance approved in 2016, positions San Diego’s minimum wage above California’s state minimum wage, which will be $16.50 in 2025. The increase reflects San Diego’s commitment to addressing the rising cost of living for its workforce.
The ordinance applies universally across all industries and businesses in San Diego, with no exceptions. Importantly, tips and gratuities do not count towards the minimum wage, ensuring a stable base pay for all workers. This comprehensive approach aims to provide financial stability to a broad spectrum of the city’s workforce.
Many San Diegans will soon see more money in their paychecks! Starting Jan. 1, the minimum wage in the City of San Diego will increase from $16.30 to $16.85 an hour. For more on the increase and the City's Earned Sick Leave and Minimum Wage Ordinance: https://t.co/8Kv78y69mB
— City of San Diego (@CityofSanDiego) December 29, 2023
Economic Impact and Worker Benefits
Since the ordinance’s implementation, San Diego has seen positive economic indicators. The city’s poverty rate has decreased from over 12% in 2016 to 10.1% in 2023, suggesting that higher wages may be contributing to improved living standards. The annual adjustment of the minimum wage based on the Consumer Price Index, in place since 2019, helps ensure that wages keep pace with the cost of living.
“This milestone reflects years of hard work and advocacy to put more money directly into the pockets of hardworking San Diegans,” said Mayor Todd Gloria. “By raising the minimum wage, we are helping working families deal with the rising cost of living and better make ends meet.”
In addition to the wage increase, the ordinance maintains the provision for earned sick leave. Employees can accrue up to 40 hours of sick leave per year, which can be used for personal or family medical care. This policy enhances job security and allows workers to address health concerns without fear of lost wages.
Employer Responsibilities and Worker Rights
The ordinance places specific responsibilities on employers. They are required to post updated minimum wage notices at workplaces, ensuring that all employees are aware of their rights. The increase applies to employees working at least two hours in one or more calendar weeks within San Diego’s geographic boundaries, casting a wide net of protection for workers.
For employees or employers with questions or complaints, the City’s Minimum Wage Program is available via email or phone, providing a direct line of communication for wage-related issues. This accessibility aims to promote compliance and address concerns promptly.
Ongoing Debate and Future Prospects
While San Diego moves forward with its wage increase, broader discussions about minimum wage continue across California. A recent proposal to raise California’s minimum wage to $18 failed in the 2024 general election, highlighting the ongoing debate surrounding wage policies. Despite this setback, advocates for higher wages in California remain committed to their cause.
The debate extends to whether industry-specific wage increases, like San Diego’s, make a state-wide increase unnecessary or if they contribute to the rising cost of living. As San Diego implements its new minimum wage, the city may serve as a case study for the broader impacts of such policies on local economies and worker welfare.
