City of San Diego passes $25 minimum wage for some hospitality workers

SAN DIEGO, Calif. (FOX 5/KUSI) — The City of San Diego is moving forward with plans to raise the minimum wage for some hospitality workers to $25 an hour. 

After hearing from nearly 100 speakers during public comment Tuesday afternoon, the council voted unanimously to approve the change, despite pushback from business owners. The vote was 8 to 0, with Councilmember Raul Campillo absent from the meeting.

Cheers and applause erupted the moment higher pay in the hospitality sector was made official in council chambers.

The ordinance will impact some hospitality workers’ hourly pay over the next few years until it reaches $25 by 2030. The current hourly minimum wage is set at $17.25. According to a staff report, event center workers will see the change applied incrementally as follows:

• Beginning July 1, 2026: $21.06
• Beginning July 1, 2027: $22.00
• Beginning July 1, 2028: $23.00
• Beginning July 1, 2029: $24.00
• Beginning July 1, 2030: $25.00

The phased-in approach will apply to hotel and amusement park workers in the following order:

• Beginning July 1, 2026: $19.00
• Beginning July 1, 2027: $20.50
• Beginning July 1, 2028: $22.00
• Beginning July 1, 2029: $23.50
• Beginning July 1, 2030: $25.00

It’s a change that local union organizers have been fighting for. “I felt like that Greek story where we’re pushing the rock up the hill, and we finally got to the top. Victory,” said Christian Carbajal, an organizer with Unite Here Local 30.

Workers at amusement parks and event centers, like SeaWorld and Petco Park, as well as workers at hotels with at least 150 guest rooms will benefit from the ordinance, which is set for its first bump by July 1, 2026.

Councilmember Sean Elo-Rivera spearheaded the wage hike. Some of his colleagues also cited the high cost of living for backing it. 

“We see entertainment places raise their rates to whatever they think the market can bare to absorb those costs and why aren’t employees included in that,” said San Diego City Council President Joe LaCava, who represents District 1.

While Councilmember Vivian Moreno supported it, she acknowledged that paying workers more will impact San Diego’s economy. 

“Felt mainly by the tourism industry which is a major source of economic activity in our city and support 1 in 8 jobs in San Diego County,” said Moreno, who represents District 8.

District 5 Councilmember Marni von Wilpert said her decision follows talks with business leaders. 

“So that we lift up workers while also protecting our local small entrepreneurs,” said von Wilpert.

However, some in the hotel industry worry the wage hike will have unintended consequence. 

“With $25 we have to raise our rates and right now rates are flat,” said Bob Rauch, Managing Partner at Hilton Garden Inn and Homewood Suites San Diego/Del Mar.

Rauch said he is worried he’ll have to pass down the extra cost to customers.

In a statement, Fred Tayco, Executive Director, San Diego County Hotel & Lodging Association, also expressed concern. He wrote, “The City Council’s approval of a $25 minimum wage remains a significant lift for our hospitality community at a time when we are facing broader economic headwinds and have not recovered from the global pandemic. While the phased-in approach provides some breathing room, we must be clear that such cost mandates may not be sustainable for our family-owned businesses and keep the city competitive. We remain committed to paying competitive wages and supporting our workforce. We urge City leadership to continue to work with us to ensure San Diego remains competitive, affordable and welcoming for years to come.”

Meanwhile, Rauch warned of additional tradeoffs. 

“It would mean that I’m going to have to automate to keep anywhere near the current profit margins that I have to pay back my partners,” he said.