If you’re working in San Diego right now, your paycheck probably looks a little different than it did last year. Or at least, it should. Since January 1, 2025, the San Diego minimum wage 2025 rate officially climbed to $17.25 per hour.
It’s a jump. Not a massive one, but a jump nonetheless from the $16.85 rate we saw in 2024.
Honestly, trying to keep track of California labor laws is like trying to finish a marathon while someone keeps moving the finish line. You’ve got city rates, state rates, industry-specific carve-outs, and inflation adjustments that kick in while you're sleeping.
Most people think "California minimum wage" is just one flat number. It’s not. San Diego city limits have their own rules. If you step across the street into an unincorporated part of the county, the rules change.
Why the San Diego Minimum Wage 2025 Rate is Different
Here is the thing: San Diego isn't following the standard California state floor. While the rest of California moved to $16.50 on New Year's Day, the City of San Diego pushed further.
Why? Because back in 2016, voters passed the Earned Sick Leave and Minimum Wage Ordinance. This basically means the city's rate is tied to the Consumer Price Index (CPI). If life gets more expensive—which, let's be real, in San Diego it always does—the wage has to go up to match.
The $17.25 rate applies to anyone who works at least two hours in a calendar week within the geographic boundaries of the city.
It doesn't matter if the business is a massive tech firm or a tiny coffee shop. There is no "small business" exemption here. If you’re working in the city, you get the city rate.
The Geography Trap
This is where people get tripped up. San Diego County is huge.
If you are working in the City of San Diego, you are at $17.25.
But if you are working in Chula Vista, Oceanside, or Carlsbad, those cities don't have their own specific wage ordinances. They default to the California state minimum, which is **$16.50** for 2025.
It's a $0.75 difference. Over a 40-hour work week, that’s thirty bucks. It adds up.
Fast Food and Healthcare: The $20+ Reality
If you think $17.25 is the ceiling for entry-level work, you haven't been paying attention to the industry-specific laws.
California went aggressive with Assembly Bill 1228. Since April 2024, fast-food workers at chains with more than 60 locations nationwide have been making at least $20.00 per hour.
And guess what? That isn't frozen in time. The Fast Food Council has the power to hike that every year. For 2025, while the base city rate is $17.25, your local McDonald's or Starbucks worker is likely making significantly more.
Healthcare is even more complex. Depending on the size of the hospital or the type of clinic, some healthcare workers in San Diego are seeing minimums between $18 and $23 per hour in 2025.
- Large health systems (10,000+ employees): $23.00/hr (increasing toward $25)
- Dialysis clinics or independent hospitals: $18.00/hr
- Community clinics: $21.00/hr
Basically, the "minimum" is rarely just one number anymore. It's more of a "choose your own adventure" based on where you stand and what you do.
What about Salaried Employees?
This is the "expert" detail that catches employers off guard every single year.
In California, to be "exempt" from overtime (meaning you're a salaried professional/manager), you must earn a minimum salary that is at least twice the state minimum wage.
Notice I said state minimum, not city.
Even though the San Diego city rate is $17.25, the salary threshold for 2025 is based on the state's $16.50 rate.
This means to be an exempt employee in San Diego, you must earn at least **$68,640 per year**.
If you're a manager making $65,000, you are technically misclassified. You’d be entitled to overtime pay for any hours worked over 40. I've seen businesses get absolutely wrecked by back-pay claims because they forgot to adjust their managers' salaries when the hourly floor moved.
Tips Don't Count
I’ve heard this rumor a thousand times: "If I make tips, my boss can pay me less."
No. Not in California.
States like Texas or Virginia have a "tip credit" where they pay servers $2.13 an hour and let tips make up the rest. California banned that decades ago. In San Diego, a server at a high-end steakhouse in the Gaslamp and a dishwasher in the back both must receive the full **$17.25** before a single cent of tips is counted.
The Sick Leave Bonus
The 2016 ordinance wasn't just about the cash. It also locked in earned sick leave.
Workers in the City of San Diego earn one hour of paid sick leave for every 30 hours worked. Employers can cap the use at 40 hours per year, but they have to let you carry over up to 80 hours.
It’s one of the most robust protections in the country. If your boss tells you that you don't get paid sick time because you're "part-time" or "temporary," they are wrong.
Looking Ahead to 2026
The trend isn't slowing down. We already know the San Diego minimum wage is projected to hit $17.75 on January 1, 2026.
The state of California is also looking at a move to $16.90 for the general floor.
The gap between San Diego and the rest of the state is staying pretty consistent, usually hovering around that 75-cent to 85-cent premium.
Actionable Steps for San Diegans
If you’re a business owner or an employee, "wait and see" isn't a strategy.
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For Employees:
Check your pay stub. If you work inside the city limits and you're seeing $16.50 or $16.85, you're being underpaid. You can file a claim with the City’s Minimum Wage Program. They actually investigate this stuff. Also, if you’re in fast food, make sure you’re hitting that $20+ mark.
For Employers:
Update your posters. You are legally required to display the 2025 Minimum Wage and Earned Sick Leave posters in a place where workers can see them. If you have remote workers living in the city, you need to send them digital copies.
Audit your "exempt" staff. That $68,640 salary floor is a hard line. If a manager's salary falls even one dollar below that, they are no longer exempt from overtime. It is much cheaper to give a small raise now than to pay a labor lawyer $500 an hour later to defend a wage theft claim.
Lastly, check your boundaries. Use the city's interactive map if you aren't sure if your office or job site is technically in the City of San Diego or just "San Diego County." That distinction is worth nearly a dollar an hour.
The reality is that San Diego is one of the most expensive places to live in the world. These wage increases are a response to that pressure. Whether you're paying it or earning it, knowing the exact 2025 rate is the only way to stay compliant and protected.