Opposition to Proposed $25 Minimum Wage Mandate
San Diego’s economy thrives on a delicate balance between fair wages, job opportunities, and a strong business environment. However, the recently proposed $25 minimum wage mandate in the City of San Diego threatens to disrupt this balance, creating unintended consequences that could harm workers, businesses, and the city as a whole. As a voice for San Diego’s business community, we believe it is crucial to advocate for policies that support economic growth while ensuring long-term stability.
Below is the language in our attached letter to the San Diego City Council, outlining our opposition to this proposal and the urgent need for a more sustainable approach.
“On behalf of The Lincoln Club Business League, we strongly oppose the proposed $25 minimum wage mandate for hotel, event space, and janitorial service workers. While we support fair wages and economic opportunity, this policy will have serious unintended consequences that threaten San Diego’s economy, workforce, and ability to attract visitors and major events.
The tourism and hospitality industries are already facing rising costs. San Diego already ranks among the top 5 most expensive U.S. destinations just behind New York, San Francisco, Boston, and Washington D.C. This 45% wage increase would significantly increase expenses for Hotel and Event Venues that already operate with high overhead costs and would ultimately be passed through to the consumer. It would undermine the city’s competitiveness, pushing events and leisure travel to competing markets. An Oxford Economics study projects a $158.7 million annual loss in visitor spending, affecting not just hotels but also restaurants, attractions, and small businesses that rely on tourism.
Beyond harming businesses, this mandate will exacerbate the City’s budget deficit, which is already projected at $350 million for 2025. A decline in tourism-driven revenue could result in an $18.3 million annual loss in local tax revenue, impacting vital public services such as parks, libraries, and cultural programs.
The Berkeley Research Group (BRG) recently released a study showing the impact of minimum wage going up to $20 an hour for fast food workers due to Assembly Bill 1228. It reports that the bill caused thousands of lost jobs (over 10,000), reduced hours, increased food prices and an increased use of technology to replace workers to offset increased labor costs.
The sudden and substantial minimum wage hike for hotel, event space and janitorial workers would force businesses to cut jobs, reduce hours, and scale back operations. Estimates suggest that 4,400 jobs could be lost in San Diego as a result of this policy, disproportionately affecting the very workers it aims to help.
While we recognize the importance of affordability in San Diego, this proposal does nothing to address housing costs or long-term economic stability. Instead, it increases operational costs, which will ultimately be passed on to consumers, workers, and local businesses.
We urge the City Council to reject this proposal and work collaboratively with industry leaders on solutions that balance economic growth with fair wages. Thank you for your time and consideration.”
-Scott Bedingfield, Chairman & Victor Lopez, Executive Director
