The San Diego City Council has unanimously approved a plan to raise the minimum wage for certain hospitality workers to $25 per hour, with a phased implementation set to begin in 2026.
The measure, passed 8-0 on Tuesday with one council member absent, targets hotels, amusement parks, and event centres across the city.
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Phased wage increases for hotels, event centres and amusement parks
The ordinance outlines a gradual pay rise over several years. Workers at large hotels with at least 150 guest rooms and amusement parks will see their hourly wage increase from $17.25 to $19 in 2026, rising by $1.50 each year to reach $25 by 2030.
Employees at event centres will start at $21.06 in 2026, with incremental annual increases to $25 by 2030.
The measure will affect around 103 of the city’s 385 hotels, motels, and bed-and-breakfasts—roughly 27% of the hospitality sector.
Venues such as Petco Park, Pechanga Arena, the San Diego Convention Center, and major hotels including the Manchester Grand Hyatt and Marriott Marquis are included.
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By GlobalDataSome institutions, including San Diego State University’s Viejas Arena and the Cal Coast Credit Union Amphitheatre, as well as the San Diego Zoo, are exempt.
Support and opposition from workers and businesses
The wage increase has been welcomed by many hospitality workers. Samara Talavera, a hotel housekeeper and single mother with 20 years of experience, said the increase would ease financial pressures, allowing her to cover rent and groceries more comfortably.
Supporters argue the move addresses the high cost of living in San Diego, where the Massachusetts Institute of Technology’s Living Wage Calculator estimates a single adult requires $30.71 per hour to meet basic expenses.
Mikey Knab, co-founder of Business for Good, said higher wages strengthen local businesses and circulate money within the community.
Business groups have voiced concern. Chris Cate, president of the San Diego Regional Chamber of Commerce, called the policy “shortsighted,” warning it could increase costs for companies and families without solving underlying affordability issues.
During public comment, owners of both large and small businesses argued the measure might prompt automation and harm the tourism sector.
Councilmember Sean Elo-Rivera defended the proposal, saying rising prices already favour wealthy individuals and the council has chosen to prioritise workers.
Councilwoman Vivian Moreno noted the ordinance would disproportionately affect tourism and called for broader application to public-sector employees.
Economic context and next steps
Since the adoption of the Earned Sick Leave and Minimum Wage Ordinance in 2016, San Diego’s minimum wage has risen from $10.50 to $17.25, above California’s $16.50 and far above the federal $7.25 rate.
However, the city’s cost of living continues to increase independently of wage policy.
The ordinance, now approved by the City Council, is expected to be implemented starting July 2026.
Observers note it aligns with broader trends in California cities to address income inequality and support workers in high-cost urban areas while maintaining a phased approach to minimise economic disruption.
