News Summary
San Diego Councilmember Sean Elo-Rivera has introduced a proposal for a new minimum wage of $25 per hour for hospitality workers, a 45% increase from the current rate. The proposal includes exemptions for certain businesses and a phased implementation plan that aims to gradually raise wages over four years. Despite opposition from major hospitality stakeholders, Elo-Rivera emphasizes the necessity for a living wage to support service workers. A final council vote is set for the upcoming meeting, which will significantly influence the local economy.
San Diego, CA – San Diego Councilmember Sean Elo-Rivera has proposed a new minimum wage of $25 per hour for hospitality workers in the city, marking an increase of nearly 45% from the current minimum wage of $17.25. This proposal comes seven months after Elo-Rivera’s initial call for wage enhancements aimed at alleviating economic pressures on service workers.
The revised proposal includes exemptions for the San Diego Zoo along with certain other businesses, as well as a phased implementation period for larger establishments such as amusement parks and hotels. According to the plan, the new minimum wage will be gradually rolled out over four years, with workers in major venues like Petco Park seeing a pay increase from $21.06 per hour starting on July 1, 2024, and reaching the target wage by 2030.
With the hospitality sector gearing up for a potentially costly referendum campaign against the wage increase—having raised $1.6 million in opposition—Elo-Rivera’s proposal seeks to pre-empt any delays caused by a ballot measure. Major hotel chains, including the Manchester Grand Hyatt and Marriott Marquis San Diego, are among the key supporters of this campaign.
The phased approach aims to ease pushback from the hotel industry, although concerns remain regarding the long-term impact of the wage increase on business operations and employment. This proposal will not affect existing labor contracts that have already been negotiated. Notably, the San Diego Zoo is exempt from the wage increase due to a recently established union agreement that improved wages for its employees. Other venues such as Viejas Arena and Snapdragon Stadium were also excluded based on financial considerations.
Under the new wage structure, hotels with more than 150 employees will start their workers at $19 per hour, with increments of $1.50 each year until they reach the proposed $25 per hour by 2030. Even as some stakeholders in the hotel industry suggested excluding tipped workers from the wage hike, their request was declined by the City Attorney’s Office.
The proposal is poised to impact tens of thousands of service workers across various sectors, including hotel staff, ticket takers, and employees at places like SeaWorld. The San Diego Regional Chamber of Commerce has voiced opposition to the revised plan, arguing that elevating the minimum wage will raise living costs and negatively influence the local economy. Elo-Rivera underscored the necessity for service workers to receive a living wage, referencing calculations from MIT indicating that single-person households in the area would need to earn $30.71 per hour to maintain an acceptable standard of living.
Existing job market concerns have been expressed regarding the potential implications of the wage increase, particularly the possibility that employers may become reluctant to hire young or entry-level workers due to increased costs. Similar minimum wage policies have been implemented in other cities throughout California, with wage increases for fast food workers set at $20, as well as designated wage hikes for hotel employees in Long Beach and Los Angeles.
The impending final vote on the proposed $25 minimum wage for hospitality workers is scheduled to take place at the upcoming city council meeting on Tuesday, marking a significant point of consideration for the local economy and its workforce.
Deeper Dive: News & Info About This Topic
HERE Resources
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Additional Resources
- San Diego Union-Tribune
- 10 News
- San Diego Business Journal
- KOGO News
- Fox 5 San Diego
- Wikipedia: Minimum Wage
- Google Search: minimum wage in California
- Google Scholar: minimum wage impact
- Encyclopedia Britannica: Minimum Wage
- Google News: minimum wage California
Author: STAFF HERE SAN DIEGO WRITER
SAN DIEGO STAFF WRITER The SAN DIEGO STAFF WRITER represents the experienced team at HERESanDiego.com, your go-to source for actionable local news and information in San Diego, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Comic-Con International, San Diego County Fair, and San Diego Pride Festival. Our coverage extends to key organizations like the San Diego Regional Chamber of Commerce and United Way of San Diego County, plus leading businesses in biotechnology, healthcare, and technology that power the local economy such as Qualcomm, Illumina, and Scripps Health. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
