San Diego Municipal Code Div. 1 City of San Diego Hospitality Minimum Wage Ordinance

(“City of San Diego Hospitality Minimum Wage Ordinance” added 10-8-25 by O-22003 N.S.; effective 7-1-2026.)

The purpose and intent of this Division is to ensure that employees who work in the hospitality industry within the City, specifically at hotels, event centers, and amusement parks, receive a wage that allows employees to better provide for themselves and their families. The City has an interest in ensuring that the hospitality workforce is stable and productive because the City relies on revenue the hospitality industry generates, including from sales tax and transient occupancy tax, to fund critical City services and programs. The City also has an interest in promoting an employment environment that protects government resources, increases consumer income, decreases poverty, and stimulates local businesses. (“Purpose and Intent” added 10-8-25 by O-22003 N.S.; effective 7-1-2026.)

This Division shall be cited as the City of San Diego Hospitality Minimum Wage Ordinance. (“Citation” added 10-8-25 by O-22003 N.S.; effective 7-1-2026.)

This Division is adopted pursuant to the powers vested in the City under the Constitution and the laws of the State of California, including the City’s police powers under article XI, sections 5 and 7 of the California Constitution and California Labor Code section 1205(b). (“Authority” added 10-8-25 by O-22003 N.S.; effective 7-1-2026.)

For purposes of this Division, defined terms appear in italics. To the extent that a federal, state, or other law is referenced within this Division, the citation includes and incorporates the law as it may be amended or renumbered in the future. The following definitions apply in this Division:

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Amusement park means a facility operated for profit that is:

(a) located within the territorial boundaries of the City and comprised of at least
75 contiguous acres;

(b) open to the public for the purpose of entertainment or amusement and
contains permanent amusement rides; and

(c) operated pursuant to a lease, operating agreement, or other contractual
agreement with the City.

Amusement park includes all restaurants, bars, event spaces, retail shops, parking
facilities, and all other facilities located on the grounds of an amusement park.
Amusement park does not include temporary or seasonal fairs, carnivals, festivals, or
similar short-term events that are operated for fewer than 30 days in a calendar year.

City means the City of San Diego.

Employee means any natural person who:

(a) performs at least two hours of work within the territorial boundaries of the
City for a hospitality employer in one or more calendar weeks of the year;

(b) performs work that is directly related to the hospitality employer’s hotel, event
center, or amusement park;

(c) qualifies as an employee entitled to payment of a minimum wage from any
employer under the California Labor Code and wage orders published by the
California Industrial Welfare Commission or the California Division of Labor
Standards Enforcement; and

(d) is not employed as an independent contractor as defined under the California
Labor Code. For purposes of this Division, there is a rebuttable presumption
that a worker is an employee and not an independent contractor. A hospitality
employer may rebut this presumption by demonstrating a worker satisfies all
conditions described in California Labor Code section 2775 to be an
independent contractor.

Enforcement Office means the City’s Compliance Department, Office of Labor
Standards and Enforcement, or other City office or department under the authority of
and designated by the City Manager to enforce this Division.

Enforcement Official has the same meaning as in San Diego Municipal Code
section 11.0210.

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Event center means the following facilities:

(a) Petco Park;

(b) Pechanga Arena San Diego;

(c) San Diego Convention Center; and

(d) Civic Theatre.

Event center includes all restaurants, bars, retail shops, parking facilities, and other
facilities located on the grounds of an event center. Event center also includes any
new or different structure constructed or operated on the grounds of an event center
and used for the same purpose as an event center, regardless of the name of the event
center.

Hospitality employer means any person who owns, operates, or manages:

(a) a hotel, event center, or amusement park;

(b) any contracted, leased, or sublet premises or facility on the grounds of a hotel,
event center, or amusement park and which is directly related to the
operations of the hotel, event center, or amusement park for at least 30 days in
a calendar year; or

(c) any contracted housekeeping, janitorial, security, parking, valet parking, food
preparation, ushering, ticket-taking, concession, retail store, massage or spa,
restaurant, bar, or landscaping services that are provided on the grounds of a
hotel, event center, or amusement park.

Hospitality employer does not include any governmental entity.

Hotel means a privately-owned facility:

(a) designated or used for lodging or other related services for the public located
within the territorial boundaries of the City; and

(b) containing at least 150 guest rooms or suites that persons may rent for periods
of 30 days or fewer.

Hotel does not include a facility, or portion thereof, used for short-term residential occupancy and regulated under Chapter 5, Article 10, Division 1 of the San Diego Municipal Code. Hotel includes all restaurants, bars, banquet halls, event spaces, retail shops, parking facilities, spas, and other facilities located on the grounds of a hotel.

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Minimum wage means an hourly minimum wage rate, as defined in San Diego Municipal Code section 312.0105, to be paid to employees.

Person has the same meaning as in San Diego Municipal Code section 11.0210.

Retaliation means any threat, intimidation, harassment, discipline, discharge,

demotion, suspension, reduction in employee hours, or any other adverse employment action against any employee for exercising or attempting to exercise any right under this Division. (“Definitions” added 10-8-25 by O-22003 N.S.; effective 7-1-2026.)

(a) Hospitality employers shall pay employees no less than the minimum wage for all hours worked within the territorial boundaries of the City. Hospitality employers must pay all wages owed employees under section 312.0105, whether the amount is fixed or ascertained by the standard of time, task, piece, commission basis, or other method of calculation, in a manner and frequency consistent with the California Labor Code and wage orders published by the California Industrial Welfare Commission or the California Division of Labor Standards Enforcement.

(b) The minimum wage for hospitality employers at hotels and amusement parks:

(1) is $19.00 per hour;

(2) is $20.50 per hour beginning July 1, 2027;

(3) is $22.00 per hour beginning July 1, 2028;

(4) is $23.50 per hour beginning July 1, 2029;

(5) is $25.00 per hour beginning July 1, 2030; and

(6) increases by an amount corresponding to the prior year’s increase, if
any, in the cost of living, beginning July 1, 2031, and each year
thereafter.

(c) The minimum wage for hospitality employers at event centers:

(1) is $21.06 per hour;

(2) is $22.00 per hour beginning July 1, 2027;

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(3) is $23.00 per hour beginning July 1, 2028;

(4) is $24.00 per hour beginning July 1, 2029;

(5) is $25.00 per hour beginning July 1, 2030; and

(6) increases by an amount corresponding to the prior year’s increase, if
any, in the cost of living, beginning July 1, 2031, and each year
thereafter.

(d) For purposes of calculating the minimum wage described in section 312.0105(b)(6) and (c)(6), the prior year’s increase in the cost of living is measured by the percentage increase, if any, as of December of the immediately preceding year over the level as of December of the previous year of the Consumer Price Index (Urban Wage Earners and Clerical Workers, U.S. City Average for All Items), or its successor index, as published by the United States Department of Labor, or its successor agency, with the amount of the minimum wage increase rounded up to the nearest multiple of five cents. The City shall announce the adjusted minimum wage by April 1 of each year that will become effective as the new minimum wage on July 1 of that year. The adjusted minimum wage shall be noticed and posted as set forth in this Division.

(e) If the federal, state, or City minimum wage is increased above the minimum
wage, the minimum wage shall be increased to match the higher federal
minimum wage, state minimum wage, or City minimum wage described in
San Diego Municipal Code section 39.0107. The increased minimum wage
shall be effective on the same date as the increase in the federal, state, or City
minimum wage takes effect.

(f) A hospitality employer that meets the requirements to claim a credit against the
state minimum wage under the California Labor Code or wage orders published
by the California Industrial Welfare Commission or the California Division of
Labor Standards Enforcement for meals or lodging provided to employees may
claim a credit in the same amount against the minimum wage.

(g) A hospitality employer shall not:

(1) fail to pay the minimum wage owed to an employee;

(2) fail to pay all overtime wages owed to an employee based on the
minimum wage;

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(3) make an unlawful deduction from the minimum wage that reduces an
employee’s wage below the minimum wage; or

(4) intentionally or knowingly misclassify an employee as an independent contractor to avoid paying the minimum wage. (“Minimum Wage” added 10-8-25 by O-22003 N.S.; effective 7-1-2026.)

(a) The City shall publish the following bulletins and notices regarding the minimum wage:

(1) a bulletin announcing the minimum wage for the upcoming year;

(2) a notice for hospitality employers to post in compliance with
section 312.0106(d); and

(3) a template notice suitable for use by hospitality employers to comply
with section 312.0106(e).

(b) The City shall publish the bulletins and notices described in section 312.0106(a) for
the upcoming year by:

(1) April 1, 2026, with 2026 information; and

(2) April 1 of each year after 2026, with information for that year.

(c) The City shall make the notices described in section 312.0106(a)(2) and
(3) available to hospitality employers in English, Spanish, and any other
language for which the San Diego County Registrar of Voters provides
translated ballot materials under section 203 of the federal Voting Rights Act or
California Elections Code section 14201.

(d) Hospitality employers shall post the notice described in section 312.0106(a)(2) in
a conspicuous place at any workplace or job site where an employee works. The
notice shall be posted in English and in any other language the City makes the
notice available if it is spoken by at least five percent of the employees at the
employee’s workplace or job site. The notice described in section 312.0106(a)(2)
may be provided electronically to employees in addition to posting the notice.

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(e) Hospitality employers shall provide written notice to each employee on the effective date of this Ordinance, and to new employees at the time of hire, of the hospitality employer’s legal name and any fictitious business names, address, telephone number, and the hospitality employer’s requirements under this Division. The written notice shall be provided to each employee in English and also in the employee’s primary language, if the City provides a template notice in the employee’s primary language and the language is spoken by at least five percent of the employees at the hospitality employer’s workplace or job site. The notice may be provided through an accessible electronic communication in lieu of a paper notice. (“Notice and Posting” added 10-8-25 by O-22003 N.S.; effective 7-1-2026.)

(a) Hospitality employers shall create contemporaneous written or electronic records documenting each employee’s dates and hours worked and wages paid. Hospitality employers shall provide these records to employees on a regular basis in a manner that complies with California Labor Code section 226 and shall retain these records for at least three years.

(b) Hospitality employers shall allow the Enforcement Official reasonable access to
these records in furtherance of a compliance review or investigation conducted
under San Diego Municipal Code section 312.0110(d).

(c) A hospitality employer’s failure to create and retain contemporaneous written or
electronic records documenting each employee’s dates and hours worked and
wages paid, or to provide such records to an Enforcement Official, upon request,
creates a rebuttable presumption that the hospitality employer has violated the
recordkeeping requirements in section 312.0107(a). If a hospitality employer is
unable to provide the records described in section 312.0107(a), the Enforcement
Official may rely on an employee’s reasonable estimate or other evidence
regarding the dates and hours worked and wages owed.
(“Employer Records” added 10-8-25 by O-22003 N.S.; effective 7-1-2026.)

(a) Hospitality employers shall not engage in retaliation against an employee. Any employee who reasonably and in good faith reports a violation of this Division to their hospitality employer or a governmental agency tasked with overseeing the enforcement of any wage and hour law applicable to the hospitality employer shall be entitled to the protections against retaliation described in section 312.0108.

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(b) A hospitality employer is prohibited from engaging in retaliation against an
employee who reasonably and in good faith:

(1) requests payment of the minimum wage;

(2) files a complaint for an alleged violation of this Division with the
Enforcement Office, any other governmental wage and hour
enforcement agency, or in a court of competent jurisdiction;

(3) communicates with any person about any violation or alleged
violation of this Division;

(4) participates in any investigation or administrative or judicial action
regarding an alleged violation of this Division;

(5) informs any person of their potential rights under this Division; or

(6) takes any other lawful action to enforce this Division.

(c) There is a rebuttable presumption that a hospitality employer has engaged in
retaliation against an employee if the hospitality employer takes an adverse
employment action against the employee within 90 calendar days of the
employee’s exercise of any right provided by this Division.
(“Retaliation Prohibited” added 10-8-25 by O-22003 N.S.; effective 7-1-2026.)

(a) Any person claiming a violation of this Division, including an employee or the City, may bring a cause of action against a hospitality employer in a court of competent jurisdiction to enforce this Division, without exhausting the administrative relief set forth in this Division. Submitting a complaint to the Enforcement Office is neither a prerequisite nor a bar to bringing a civil action in a court of competent jurisdiction.

(b) Any person claiming a violation of this Division, including an employee or
the City, is entitled to all legal and equitable relief to remedy any violation of
this Division, including:

(1) payment of back wages for unpaid minimum wage or unpaid overtime
wages based on the minimum wage, to an aggrieved employee;

(2) reinstatement of employment or other injunctive relief;

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(3) reasonable attorneys’ fees and costs to any plaintiff who prevails in an
action to enforce this Division; and

(4) payment of liquidated damages to an employee equal to double back
wages owed.

(c) Any hospitality employer that engages in retaliation against an employee is
subject to liquidated damages that are the greater of double back wages or
$1,000 for each violation not resulting in termination of employment, or the
greater of double back wages or $3,000 when an employee is terminated from
employment for exercising any right provided under this Division. Violations
of this Division are declared to irreparably harm the public and employees
generally.

(d) Any hospitality employer that violates any requirement of this Division is
subject to a civil penalty, assessed and payable to the City, of no less than
$500, but no more than $1,000 per violation, except as otherwise provided in
section 312.0109. Each day that a hospitality employer fails to pay an
employee the minimum wage constitutes a separate and distinct violation.

(e) Any hospitality employer that fails to comply with the notice and posting
requirements in San Diego Municipal Code section 312.0106 is subject to a
civil penalty, assessed and payable to the City, of $500 for each failure to post
the required notices at the workplace or job site and for each employee who is
not given the required notice pursuant to section 312.0106, up to a maximum
of $2,000.

(f) Any hospitality employer that engages in retaliation against an employee is
subject to a civil penalty, assessed and payable to the City, of no less than
$1,000, but no more than $3,000 per violation.

(g) A hospitality employer that fails to cooperate with or respond to the
Enforcement Office’s compliance review or investigation pursuant to San
Diego Municipal Code section 312.0110(d) within the time specified by the
Enforcement Official, including a hospitality employer’s failure to provide
requested information or documentation, is subject to a civil penalty of
$1,000, assessed and payable to the City, for each instance the hospitality
employer fails to cooperate or comply.

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(h) The cumulative civil penalties that may be assessed against a hospitality
employer that has not previously violated any provision of this Division are
limited to $10,000. The minimum and maximum civil penalties that may be
assessed under section 312.0109 shall be increased cumulatively by 50 percent
for each subsequent violation of the same section in this Division by the same
hospitality employer within a three-year period. If civil penalties and costs are
the subject of administrative appeal or judicial review, then the accrual of
penalties and other costs is stayed until the determination of the appeal or review
is final.

(i) A hospitality employer is deemed to have violated this Division upon the
issuance of:

(1) a Notice of Satisfaction;

(2) an Administrative Enforcement Order; or

(3) a final judgment of a court of competent jurisdiction, with a finding of
a violation.

(j) Violations of this Division may not be prosecuted as a misdemeanor or
infraction.

(k) This Division does not create any right of action or cause of action for
damages against the City in its enforcement of this Division.

(l) If a hospitality employer ceases its business operations, sells, exchanges, or
otherwise disposes of the hospitality employer’s business, then any person who
becomes a successor in interest to the hospitality employer shall be liable for
any unpaid wages, damages, or penalties as defined in the Notice of
Satisfaction and Administrative Enforcement Order issued by the Enforcement
Office or a final judgment of a court of competent jurisdiction, with a finding
of a violation, if, at the time of the conveyance of the hospitality employer, the
successor in interest has actual or constructive knowledge of the fact and
amount of the Notice and Order or final judgment.
(“Remedies” added 10-8-25 by O-22003 N.S.; effective 7-1-2026.)

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(a) Any employee claiming a violation of this Division may file a complaint with the Enforcement Office as described in San Diego Municipal Code section 39.0113(c).

(b) The Enforcement Office shall have full authority to implement and enforce
this Division, consistent with the authority and powers set forth in Chapter 1,
Article 2, Division 1 of the San Diego Municipal Code, and San Diego
Municipal Code section 39.0113.

(c) Hospitality employers are entitled to the rights and subject to the obligations
described in San Diego Municipal Code section 39.0113.

(d) The Enforcement Office can initiate compliance reviews and investigations of
any hospitality employer subject to this Division regarding minimum wage
payments, overtime payments based on the minimum wage, and the
recordkeeping, notice, and posting requirements of this Division.
(“Enforcement Office” added 10-8-25 by O-22003 N.S.; effective 7-1-2026.)

Hospitality employers and employees may jointly waive the minimum wage requirements described in this Division by clear and unambiguous terms in a bona fide collective bargaining agreement under the National Labor Relations Act or applicable successor legislation. However, a hospitality employer may not rely on unilaterally imposed wages that are less than or otherwise inconsistent with the minimum wage as an exemption to the requirements of this Division. To rely on the exemption, a hospitality employer shall provide the Enforcement Office, upon request, with a complete and unredacted copy of the applicable collective bargaining agreement. (“Exemption for Collective Bargaining Agreements” added 10-8-25 by O-22003 N.S.; effective 7-1-2026.)

(a) All provisions in this Division are intended to be consistent with all applicable federal and state laws.

(b) This Division shall not be construed to discourage or prohibit a hospitality
employer from providing higher wages to its employees than specified in this
Division.

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(c) This Division is not intended to, and shall not be interpreted to, modify any
obligation a hospitality employer has to comply with any contract, collective
bargaining agreement, employment benefit plan, or other agreement providing
higher wages to an employee than specified in this Division.

(d) This Division is not intended to, and shall not be interpreted to, require or coerce
a hospitality employer to enter into a collective bargaining agreement
establishing the substantive terms and conditions of employment, including
wages.

(e) This Division is not intended to, and shall not be interpreted to, enact or
express any generally applicable policy regarding labor-management relations
or to regulate those relations in any way.

(f) To the extent a hospitality employer is also subject to a minimum wage set
forth in another section of the San Diego Municipal Code or federal or state
law, the hospitality employer shall comply with the higher of the minimum
wage requirements.
(“Compliance with Other Laws” added 10-8-25 by O-22003 N.S.; effective
7-1-2026.)

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