The City of San Diego’s hospitality industry is ushering in substantial changes in wage requirements. The City Council has passed an ordinance establishing a new minimum wage schedule for employees at hotels, amusement parks, and event centers. If you are an employer in these sectors, it’s crucial to understand the timeline and requirements to ensure compliance and avoid penalties.

Who Is Covered?

The ordinance applies to:

• Hotels with at least 150 guest rooms or suites.
• Amusement parks with at least 75 contiguous acres, operated for profit and under contract with the City.
• Event centers, specifically including Petco Park, Pechanga Arena San Diego, San Diego Convention Center, and Civic Theatre, including their associated facilities.

Minimum Wage Schedule

Here’s a breakdown of the scheduled minimum wage increases for covered hospitality employers:

Starting July 1, 2031, the minimum wage will increase annually based on the Consumer Price Index (CPI) for Urban Wage Earners and Clerical Workers, U.S. City Average for All Items. The City will announce the new rate by April 1 each year, effective July 1.

Employer Obligations

The City will provide official notices and templates. Employers are required to post these in conspicuous locations and provide written notice to employees in their primary language.

Next Steps

Employers in San Diego’s hospitality sector should review their current wage practices and prepare for the upcoming changes.

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