Anyone who works inside the city of San Diego is covered by two minimum wages at once: a statewide floor set by California and a higher one set by the city. This article explains how the layers work, what the published rates are for 2026 and 2027, and how the city’s earned sick leave rules operate alongside the wage.
Which minimum wage applies in the city of San Diego?
California sets a statewide minimum wage that applies to employers of every size. Some cities set their own, higher figure for work performed within their boundaries, and San Diego is one of them. The city’s Earned Sick Leave and Minimum Wage Ordinance, approved by voters and in effect since July 2016, according to the city, covers hours worked within city limits.
In practice, the higher number controls. A worker whose hours are in the city of San Diego is entitled to the city rate, while a worker in a community without its own local ordinance falls back to the state rate. The boundary is a legal one, not a neighborhood one, so a business with locations on both sides of a city line can be subject to different rates at different sites. The county’s unincorporated areas and other cities in the region follow their own rules, which this article does not cover.
What are the published rates for 2026 and 2027?
According to the City of San Diego’s minimum wage page, the city rate is a schedule of fixed amounts that apply to hours worked within city boundaries:
| Effective date | City of San Diego minimum wage |
|---|---|
| January 1, 2024 | $16.85 |
| January 1, 2025 | $17.25 |
| January 1, 2026 | $17.75 |
| January 1, 2027 | $18.35 |
On the state side, KPBS reported that the statewide minimum rose to $16.90 on January 1, 2026, a 40-cent increase, after the Department of Finance calculated the adjustment in August 2025. For 2027, Times of San Diego reported in August 2026 that Gov. Gavin Newsom announced an increase to $17.40, effective January 1, 2027. The city’s page did not say how its own annual figure is calculated, so this article does not characterize the method. Readers should check the city’s page for the current rate, since schedules are updated.
The gap between the two floors is therefore visible in the published numbers. As of 2026, the city figure of $17.75 sits $0.85 above the state’s $16.90. For 2027, the published city figure of $18.35 would sit $0.95 above the state’s $17.40.
What do those rates mean in a paycheck?
A worked example shows the scale. This is illustrative arithmetic only, not a prediction about any employer’s payroll. A full-time schedule of 40 hours a week for 52 weeks is 2,080 hours a year.
- At $16.90 an hour, 2,080 hours comes to $35,152 before taxes.
- At $17.75 an hour, the same hours come to $36,920, which is $1,768 more per year.
- At $18.35 an hour, the 2027 city figure, the total is $38,168.
Those are gross amounts. They ignore payroll deductions, tips, overtime and unpaid time off. For an employer, the same arithmetic shows why labor cost is one of the largest line items for restaurants, retailers and service firms, a theme that also runs through the broader picture in the region’s economy of defense, life sciences, tourism and trade.
How does earned sick leave work under the city ordinance?
The same ordinance requires paid sick leave. According to the city, employees accrue at least one hour of earned sick leave for every 30 hours worked within the city. The rules the city publishes include these elements:
- Coverage: Employees who work at least two hours in one or more calendar weeks within city boundaries are covered, according to the city.
- Accrual cap: Employers may cap total accrual at 80 hours.
- Carryover: Unused accrued leave carries forward to the following benefit year (the twelve-month period the employer uses to track leave).
- Front-loading option: An employer may instead award at least 40 hours at the start of each benefit year, which the city says satisfies the accrual and carryover requirements.
- Use limit: Employers may limit an employee’s use to 40 hours per benefit year.
Another illustration of the accrual rate: 2,080 hours worked divided by 30 is about 69 hours of accrued leave over a full-time year, which is under the 80-hour cap. An employee working 1,200 hours would accrue 40 hours.
The city lists permitted uses that include an employee’s own medical care and that of a family member. It also describes “Safe Time,” which covers time away from work related to domestic violence, sexual assault or stalking, including medical care, victim services, counseling, relocation and legal proceedings. The city’s list of covered family members includes children, spouses, domestic partners, parents, grandparents, grandchildren, siblings and in-laws.
State law also contains its own paid sick leave requirements. This article does not detail them; workers and employers who are unsure which rule gives the greater benefit should consult the state labor agencies or a qualified professional.
What must employers post and provide?
The city says employers must display its annual notices in a conspicuous place where employees work. It also says employers must give employees written notice with the employer’s legal name, any fictitious business name, address and phone number, the ordinance requirements, and the sick leave accrual method. Electronic delivery is allowed, and the city offers an employer-to-employee notice template in English, Spanish, Chinese, Vietnamese and Tagalog.
Compliance sits alongside other registration duties for a local business, such as the city’s business tax certificate and the steps in registering a business in California. The wage and leave ordinance is a separate obligation from both.
What happens if an employer does not follow the rules?
According to the city, employers may not retaliate against anyone for exercising rights under the ordinance, including reporting violations or requesting or using leave or the minimum wage. The city lists threats, discipline, discharge, demotion, suspension and reduced hours among the prohibited actions.
Workers can file a complaint with the city’s Minimum Wage Program, online or by mail, and the city says anonymous tips are accepted. The city describes two kinds of enforcement: investigations triggered by complaints, and “directed investigations” that proactively target industries where violations are considered likely and where workers are vulnerable or low-income. The city also says employees may sue in court or file a claim with the California Labor Commissioner’s Office. The pages reviewed did not list specific penalties, so readers should consult the city for those details.
Are there other wage floors in California?
Yes. KPBS reported in December 2025 that California has sector-specific minimums under laws signed in 2023, including $20 an hour for fast food workers and a path toward $25 an hour for health care workers. KPBS also reported that more than two dozen California local jurisdictions raised their own minimums that year, with West Hollywood the highest city rate at $20.25 per UC Berkeley Labor Center figures. The same report said a November 2024 ballot measure to raise the state rate to $18 narrowly failed. The report did not discuss San Diego’s ordinance.
For context on how employment is measured in the region, see how the unemployment rate is measured.
A schedule that changes each January
The main points are straightforward. The city of San Diego has a published schedule of wage floors that sits above the state’s, paid sick leave accrues at one hour per 30 hours worked, and two sets of rules can apply at the same job site depending on where the hours are worked. Because rates change each January and local rules can be amended, the City of San Diego’s Minimum Wage Program page is the place to confirm the current figure before relying on any number here.
This is general information, not personalized financial, investment, tax or legal advice.
Sources: City of San Diego; KPBS; Times of San Diego
