The San Diego City Council approved an ordinance that increases the minimum wage required to be paid to workers within the city to $11.50 per hour by 2017. In addition the ordinance calls for the minimum wage to automatically increase every year after 2018 by indexing the minimum wage to inflation. Currently California’s minimum wage is set at $9.00 per hour, which increased from $8.00 per hour in July 2014

San Diego Proposed Minimum Wage Increases

Current Minimum Wage

$9.00 per hour

January 1, 2015

$9.75 per hour

January 1, 2016

$10.50 per hour

January 1, 2017

$11.50 per hour

January 1, 2018

Minimum wage will increase each year measured in the increase of the Consumer Price Index.

The ordinance also requires employers to provide up to five days of paid sick leave. If enacted, the sick leave requirement will begin in April 1, 2015 and provides employees with one hour of paid sick leave for every 30 hours worked. Leave must be carried over from year to year, but employers may cap the use of the sick leave to 40 hours of paid leave within a benefit year. The ordinance also provides that:

          For employees that are not covered by the overtime requirements of California law, it will be presumed that they work 40 hours a week. If an employee works less than 40 hours they will only accrue sick leave based on their actual hours worked.

          Employers may set a reasonable minimum increment for use of sick leave, but this minimum may not exceed two hours.

          If an employee separates employment, but returns to work within six months, all previously unused sick leave will be reinstated to the employee. 

          If an employee uses sick leave for more than three consecutive work days, the employer may require “reasonable” documentation from a licensed heath care provider justifying the leave. 

Currently the ordinance is before San Diego’s Mayor, Kevin Faulconer, who has stated he will veto the measure. However, the ordinance was passed by a super-majority that can override the Mayor’s veto, possibly forcing the issue to a referendum. If this occurs, the City Council will have the option to either rescind the legislation, or submit the matter to the voters of San Diego.