SAN DIEGO — A proposal to raise the minimum wage for thousands of San Diego tourism-sector workers to $25/hour cleared its first major hurdle on June 25, with the City Council’s Economic Development Committee voting unanimously to advance the measure.
The ordinance would raise wages for roughly 8,000 workers at hotels with 150 or more rooms, the San Diego Zoo, SeaWorld, Petco Park, and other large venues. The current citywide minimum is $17.25/hour.
“This is not radical,” said Council President Sean Elo‑Rivera, who authored the ordinance. “This is what basic dignity demands… Every time they say the sky will fall, and every time they are wrong.” He emphasized that wages have lagged behind rising costs, noting that rent has jumped up to 40% over five years for many residents. “Significant wealth is being extracted from the city,” he added, “and I don’t believe there’s a fair deal between those extracting the wealth and the workers making it all run.”
Labor unions and community advocates say the raise is necessary to help workers meet San Diego’s high cost of living. MIT’s Living Wage Calculator estimates a single adult in San Diego would need over $30/hour to afford basic needs.
Opponents, including the San Diego Regional Chamber of Commerce, hotel industry groups, and the San Diego Padres, argue the ordinance unfairly targets one sector while exempting city-employed hospitality workers. Padres COO Caroline Perry noted: “If $25 an hour is truly what it takes to afford to live in San Diego, why doesn’t it apply to the city’s own workforce?” She also warned it would drive up costs for fans and local businesses, stating, “We urge the City Council to reject it.”
An economic analysis commissioned by opponents projected the measure could result in over 4,000 lost jobs, a $333 million economic hit, and $58 million in reduced tax revenue.
The full City Council is expected to vote on the ordinance by September. If approved and signed by Mayor Todd Gloria, the wage increase would take effect on January 1, 2026. Business groups have indicated they may launch a referendum campaign if the measure becomes law.
For now, San Diego’s wage debate highlights a broader tension playing out across California: balancing affordability for workers with sustainability for businesses.
