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San Diego, CA, Adopts Hospitality Minimum Wage Ordinance

31 Dec

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Update Applicable to:Effective Date
Hotels with at Least 150 Guest Rooms, Amusement Parks with at Least 75 Contiguous Acres operated for profit and under contract with the City, and Event CentersPhased: July 1, 2026


What happened?

On September 16, 2025, the San Diego City Council unanimously approved the Hospitality Minimum Wage Ordinance, establishing a phased increase to $25 per hour for certain hospitality employees by July 1, 2030, with annual cost-of-living adjustments starting in 2031.


Overview:

Why this matters

  • The new ordinance creates a minimum wage for hospitality employees at hotels, event centers, and amusement parks.
  • Aims to stabilize the workforce and reduce reliance on public assistance.


Action Steps for Compliance

Notice and Posting

  • City will publish annual bulletins and templates by April 1.
  • Employers must post notices in English and other languages spoken by ≥5% of employees.
  • Written notice required at hire and when ordinance takes effect.

Employer Records

  • Maintain wage and hour records for 3 years.
  • Failure to provide records creates presumption of violation.

      Minimum Wage Schedule

             Hotels and Amusement Parks

  • 2026: $19.00/hr.
  • 2027: $20.50/hr.
  • 2028: $22.00/hr.
  • 2029: $23.50/hr.
  • 2030: $25.00/hr.
  • 2031 onward: Annual CPI-based increases.


Event Centers

  • 2026: $21.06/hr.
  • 2027: $22.00/hr.
  • 2028: $23.00/hr.
  • 2029: $24.00/hr.
  • 2030: $25.00/hr.
  • CPI adjustments from 2031.

Compliance with Other Laws

  • Employers must comply with the highest applicable minimum wage.
  • Ordinance does not mandate collective bargaining or alter existing agreements.


Additional Information

Definitions

  • Hotels: 150+ rooms.
  • Event Centers: Petco Park, Pechanga Arena, Convention Center, Civic Theatre.
  • Amusement Parks: 75+ contiguous acres, permanent rides, operated under City agreement.
  • Includes restaurants, bars, retail shops, and parking facilities on these grounds.

Retaliation Prohibited

  • Protects employees asserting rights or reporting violations.
  • Presumption of retaliation if adverse action occurs within 90 days.

Remedies and Penalties

  • Back wages, reinstatement, liquidated damages (double wages).
  • Civil penalties: $500–$1,000 per violation; up to $10,000 for first-time violators.
  • Retaliation penalties: $1,000–$3,000 per violation.
  • Successor liability applies if business changes ownership.

Collective Bargaining Exemption: Wage requirements may be waived in bona fide collective bargaining agreements with clear terms.


Source References

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