San Diego minimum wage updates for 2026

California-wide and San Diego-specific minimum wage increases have come with the new year. Employers operating in San Diego should stay up to date on the various state, city, and industry-specific wage increases to help reduce wage-and-hour exposure and ensure ongoing compliance.

California statewide minimum wage

Effective January 1, California’s minimum wage increased to $16.90 per hour. Several local jurisdictions, including the City of San Diego, have adopted minimum wage ordinances that exceed the state minimum. An increase in the state minimum wage also means an increase to the exempt employee salary threshold. Most exempt salaried employees will now need to be paid at least $70,304 a year.

Higher minimum wages already apply under state law for fast-food workers (currently $20 an hour for chains with certain nationwide footprints) and for certain health care workers (with variable rates above the general minimum wage).

City of San Diego minimum wage

Effective January 1, the City of San Diego increased its local minimum wage to $17.75 for work performed within the City’s incorporated boundaries. Employers with multiple locations, or with employees working across jurisdictions, can refer to the City’s official Geographic Information Systems boundary map to determine the exact areas subject to the city minimum wage.

Employees who work outside of the City of San Diego but within San Diego County will instead be subject to the state minimum wage of $16.90 per hour, unless a different local ordinance applies. 

The San Diego City Council also recently passed a separate hospitality worker minimum wage ordinance, which establishes a phased wage schedule for certain employers in the tourism and events industry. That wage ordinance, which will take effect on July 1, is discussed below.

San Diego minimum wage ordinance for hospitality workers

San Diego has adopted a separate ordinance establishing a phased minimum wage increase for employees of certain hospitality and event-related employers. The ordinance, which will take effect July 1, is intended to raise wages for workers in the city’s tourism industry, with the ultimate goal of reaching a minimum wage of $25 an hour by 2030.

The ordinance affects most hotels, amusement parks, and event centers in the city limits. However, certain venues, such as Viejas Arena and the Cal Coast Credit Union Open Air Theatre at San Diego State University, are exempt under specified conditions.

               Covered employers

Hotels. Under the Ordinance, a “hotel” is defined as a privately owned building that is in the city and is designated or used for lodging or related services for the public, if it

• Contains at least 150 guest rooms or suites.
• Rents rooms for periods of 30 or fewer days.

This includes 103 hotels.

Amusement parks. An “amusement park” is defined as a privately operated grounds or enclosure in the city of at least 75 continuous acres that contains concessions and permanent amusement rides, attractions, or stage shows. Examples of covered amusement parks are SeaWorld San Diego and Belmont Park. The ordinance does not apply to temporary or seasonal fairs, carnivals, festivals, or other short-term events that are operated for fewer than 30 days in a calendar year.

Event centers. The “event center” provision applies to Petco Park, Pechanga Arena San Diego, the San Diego Convention Center, the San Diego Civil Theatre, and the San Diego City Concourse, among other venues. It also applies to Snapdragon Stadium and Viejas Arena when leased or operated by a private entity for non-governmental purposes. It also includes structures at the event center site if used for public performances, sporting events, conventions, or similar activities.

               Covered Employees

The ordinance applies to employees of the covered employers who

• Perform at least two hours of work within the territorial boundaries of the city for the employer in one or more calendar weeks of the year.
• Perform work that is directly related to the business of the covered hotel, event center or amusement park.
• Qualify as an employee entitled to the minimum wage under California Labor Codes.
• Are not classified as independent contractors.

               Impact on Employers

Again, the phased increase system will begin on July 1, and will increase as follows:

Start Date	Hotels & Amusement Parks	Event Centers
July 1, 2026	$19.00 per hour	$21.06 per hour
July 1, 2027	$20.50 per hour	$22.00 per hour
July 1, 2028	$22.00 per hour	$23.00 per hour
July 1, 2029	$23.50 per hour	$24.00 per hour
July 1, 2030	$25.00 per hour	$25.00 per hour

What San Diego employers should do

To ensure compliance with all of the new minimum wage laws affecting San Diego, employers should do the following:

• Update documents. Ensure that job postings reflect the updated and applicable minimum wages.
• Post required notices. Employers are required to post official notices and templates in certain locations in addition to providing written notice to employees.
• Keep track of the phased-in wage increases. Ensure timely payroll updates by calendaring the effective date for all applicable wage increases.

Conclusion

All San Diego employers should carefully evaluate where their employees perform work and whether industry-specific rules apply. The interaction between state law, city ordinances, and hospitality-specific wage requirements creates a significant compliance risk, particularly for employers with multiple locations, as well as those in the hospitality industry.

Employers should also be aware that the County of San Diego is separately considering a proposed minimum wage increase to $25 per hour for stagehands and other event-related workers who perform services at county-owned parks and venues. If adopted, this provision would apply independently of the city minimum wage ordinances.

If you have questions about how these changes apply to your workforce, please contact your favorite Constangy attorney.