September 29, 2026

The Chamber recently led a coalition of business organizations in opposing a proposed 92% increase in San Diego’s Minimum Wage Ordinance User Fee, which would raise the annual charge from $1.47 to $2.82 per employee. The fee is included in the total amount businesses pay as part of their annual business license or business tax certificate. 

Whenever a local government asks businesses to pay higher fees such as a user fee increase, our team closely analyzes the justification for that increase, how the additional revenue will be used, and whether there is a clear benefit to those being asked to pay. In this case, the  fee increase funds enforcement of the City’s wage ordinances. This is an important regulatory effort, as it helps maintain a level playing field for businesses that are playing by the rules and ensures violations can be appropriately addressed. However, officials did not make a clear case of why a 92% increase was necessary just one year after its initial adoption. Given the lack of justification and stakeholder engagement, as well as the cumulative impact of rising fees and regulatory costs on local employers, the Chamber and our coalition opposed the proposal. 

The item passed the City’s Budget Committee and will now head to the City Council for consideration. The Chamber will continue engaging with Councilmembers and the City Attorney’s office to better understand the need for the proposed increase and reinforce that new or increased costs on businesses should be clearly justified, thoughtfully considered, and carefully monitored.