Latest Compliance News

California - San Diego Increases Minimum Wage for Hospitality Workers

11/06/25

Author: ADP Admin/Tuesday, November 4, 2025/Categories: Compliance Corner


Highlights

Impacted Employers: San Diego “Hospitality Employers”

 

Effective Date: July 1, 2026


Summary:
San Diego’s City has enacted an ordinance regarding the minimum wage for hospitality workers.

Next Steps: Prior to July 1, 2026, San Diego employers should review the ordinance to determine if their business is considered a “hospitality employer” and if yes, whether or not, the business is operating at an “event center” as defined by the ordinance. Also, hospitality employers should review and comply with the required posting and notice


The Details

San Diego’s City has enacted an ordinance  to raise the minimum wage for many hospitality workers to $25.00 per hour, a sector-specific ordinance that will be phased in over several years and affects large hotels, event venues and major attractions.

The ordinance applies to employees at hotels with 150 or more rooms and to staff at large event centers, amusement parks (e.g. Petco Park, Pechanga Arena, San Diego Convention Center) and comparable tourism venues. The increase will be phased in beginning July 1, 2026, with event center roles starting higher initially and hotel and amusement-park roles beginning at a lower step—culminating in a $25.00 per hour by July 1, 2030. 

Hospitality Employers

Under the ordinance, hospitality employers must pay employees at least the amounts noted below per hour:

July 1, 2026   -           $19.00

July 1, 2027   -           $20.50

July 1, 2028   -           $22.00

July 1, 2029   -           $23.50

July 1, 2030   -           $25.00

As of July 1, 2031, and each year thereafter, the minimum wage will be increased by the “cost of living.”

Hospitality Employers at Event Centers

Hospitality employers at event centers must be paid at least the following hourly rates:

July 1, 2026   -           $21.06

July 1, 2027  -            $22.00

July 1, 2028   -           $23.00

July 1, 2029   -           $24.00

July 1, 2030   -           $25.00

As of July 1, 2031, and each year thereafter, the minimum wage will be increased by the “cost of living.”

Next Steps

Prior to July 1, 2026, San Diego employers should review the ordinance to determine if their business is considered a “hospitality employer” and if yes, whether or not, the business is operating at an “event center” as defined by the ordinance. Also, hospitality employers should review and comply with the required posting and notice requirements.

Resource Corner