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Payroll Topic – San Diego Minimum Wage Rises to $10.50

Posted on July 13th, 2016

Beginning July 11th 2016 minimum wage in San Diego has been raised to $10.50 per hour. City Councilman Todd Gloria stated that the new minimum wages is “a huge victory for San Diego’s working families.” Gloria further explained “Implementation of the wage increase is a huge victory for San Diego’s working families and will provide much-needed relief for San Diegans who work full-time but still find trouble making ends meet amid rising costs for housing, utilities and groceries.”

In order to keep up with inflation, the minimum wage will increase to $11.50 on January 1st 2017. Starting January 1st 2019 and every year after the minimum wage will increase based on inflation and in correspondence to the prior year’s increase.

Effective Date

Minimum Wage Rate
July 11, 2016 $10.50
January 1, 2017 $11.50
January 1, 2019 and each following year Increase tied to Consumer Price Index (CPI)

Additionally, the city has expanded the state’s sick leave law from a minimum of 24 hours per year to 40 hours (or five days) per year.

San Diego City Treasurer will be creating an enforcement office in case any employers do not want to abide by the law. The civil penalty for violating the new law is between $500 and $1,000.00 per violation.  Other penalties may apply if the employer does not notify the employees accordingly.

The new law only applies to the highlighted cities on this map:

For more details and answers to frequently asked questions visit the San Diego City website here.

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