San Diego Approves Higher Labor Enforcement Fee

November 12, 2026

The San Diego City Council voted to nearly double the Minimum Wage and Labor Standards Enforcement Fee from $1. 47 to $2. 82 per covered employee, despite objections from the city's Small Business Advisory Board regarding the financial burden on local companies.

Who is affected

San Diego small businesses with covered employees (subject to increased fees)
The San Diego Small Business Advisory Board (particularly member Sarah Mattinson who raised concerns)
Businesses with 12 or fewer employees (paying $34 Business Tax Certificate fee)
Businesses with 13 or more employees (paying $125 plus $5 per employee)
Nonprofit organizations working with small businesses in under-resourced communities (33 Small Business Track and 72 Community Growth Track grant applicants)
Communities affected by 2024 floods
Small businesses facing ADA compliance lawsuits

What action is being taken

City staff is conducting ongoing efforts to maintain storm drains and channels and reduce flood risks
Economic Development Department staff is conducting business walks in communities affected by 2024 floods to provide preparedness information
The Small Business Advisory Board is holding monthly public meetings on the fourth Tuesday of each month at 8:30 a.m.

Why it matters

This matters because the 92% fee increase significantly impacts small business operating costs in San Diego, potentially straining already tight profit margins for local enterprises. The Small Business Advisory Board serves as an important voice for business owners in municipal decision-making, having previously achieved meaningful cost reductions like cutting business tax certificates in half for smaller companies. The board's broader work on flood preparedness, grant programs, and regulatory compliance helps protect vulnerable businesses and supports economic development in under-resourced communities, making its advocacy role crucial for San Diego's local economy.

What's next

Award determinations for the fiscal year 2027 Capacity Building Grant program were anticipated in early November
The Small Business Advisory Board expressed interest in receiving a presentation from an ADA compliance representative

Read full article from source: The San Diego Voice & Viewpoint