The San Diego City Council’s Select Committee on Addressing Cost of Living has unanimously approved a proposal to raise the minimum wage for hospitality workers to $25 an hour. This proposal will be returned to the staff in Councilman Sean Elo-Rivera’s office for the drafting of an ordinance, which will later be presented to the full City Council later this year. Elo-Rivera, who chairs the select committee, advocated for this increase, especially benefiting those working in San Diego’s tourism sector. He emphasized the need for such a wage increase, stating, ‘This is not radical; this is what basic dignity demands.’
Elo-Rivera dismissed concerns raised by major businesses, which argue that implementing this proposal could result in the loss of tens of thousands of jobs. He stated, ‘We’ve heard these scare tactics before. Every time they say the sky will fall, and every time they are wrong.’ If the ordinance is approved, it will cover hospitality workers in various sectors, including amusement parks, hotels with at least 150 rooms, event centers, and zoos. The proposal aligns with movements in Los Angeles and Long Beach, which have also taken steps to raise wages ahead of the 2028 Olympic Games.
Responses from the business community have been predominantly negative. Chris Cate, president and CEO of the San Diego Regional Chamber of Commerce and a former city councilman, expressed skepticism about the proposed wage increase’s feasibility. While acknowledging that San Diego is costly to live in, he stated, ‘This will not make it easier to afford to live in San Diego.’ Furthermore, a report from the city’s Independent Budget Analyst’s office suggested a middle-ground approach. The report indicated that previous minimum wage increases did not significantly impact transient occupancy taxes, a tax collected from hotels. However, it cautioned that a rise to $25 an hour could lead large businesses, such as hotels, to reduce employee hours and cut back on services.
Since the implementation of the Earned Sick Leave and Minimum Wage Ordinance in 2016, the minimum wage in San Diego has progressively grown from $10.50 to $17.25, surpassing California’s state rate of $16.50 and the national minimum of $7.25 per hour. Despite these increases, the cost of living in San Diego has changed dramatically, with the Massachusetts Institute of Technology’s Living Wage Calculator indicating that a single person would need to earn $30.71 per hour to live independently in San Diego County. For a household consisting of two adults and one child, the living wage figure rises to $49.13 per hour.
Emily Renda, a businesswoman and boardmember of Business For Good San Diego, shared her perspective on the issue, pointing out that many community members struggle despite working full-time jobs. She stated, ‘$25 an hour is the bare minimum we should be paying, and this is a progressive step forward for our city.’ Proponents of the proposal argue that the hospitality industry receives substantial financial support from the city, facilitating wage increases. Among this support are allocations such as $62 million for San Diego’s Tourism Marketing District, nearly $21 million in subsidies to the San Diego Zoo, and no additional charges for public amenities.
The San Diego Padres expressed concern over the potential economic ramifications of the proposed wage increase. Caroline Perry, chief operating officer of the Padres, stated, ‘We believe in fair, competitive wages, but this proposal is too extreme. It would drive up the cost of living, make it harder for San Diegans to attend games, and hurt the local businesses that rely on Petco Park. We urge the City Council to reject it.’ The Padres set a franchise attendance record in 2024, welcoming over 3.3 million fans to their home games, highlighting their significant economic role in the community.
Councilman Henry Foster III pointed out that a $25 hourly wage equates to approximately $52,000 yearly. While acknowledging that this amount still falls short of being a livable wage in San Diego, he called the select committee’s decision a display of common sense. Councilwoman Marni von Wilpert echoed the committee’s support while voicing concerns about the burdens smaller businesses and nonprofits might face under the proposal. She advocated for a phased approach to make the transition more manageable.
During the public comment session, over 80 individuals voiced their opinions on the matter. Nate Fairman, the business manager and financial secretary of the IBEW Local 465, delivered a passionate speech, performing a San Diego version of the union protest song ‘Which Side Are You On?’ He questioned, ‘Are you on the side of the workers? Or on the side of the bosses?’ emphasizing solidarity with workers’ rights.
Brigette Browning, head of the San Diego Labor Council and UniteHERE! Local 30, criticized the opponents who invest in lobbyists yet fail to support workers appropriately. Meanwhile, Clayton Fowler, public affairs manager of the Downtown San Diego Partnership, advised the council to consider the potential risks involved, warning that thousands of jobs and the vitality of the downtown business environment could be at stake.
If approved as proposed, the wage increase is set to take effect on January 1, 2026.
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