The San Diego City Council approved an increase in the City’s Minimum Wage and Labor Standards Enforcement Fee on October 26, raising the charge from $1.47 to $2.82 per covered employee, an increase of approximately 92%. The decision followed concerns raised by the City’s Small Business Advisory Board about the financial impact on local businesses.
According to the board’s September 22 meeting minutes, member Sarah Mattinson expressed concern about the proposed increase and recommended that the board formally communicate its objections. The board voted to approve drafting an advisory letter outlining those concerns.
The Council’s action, recorded under Resolution R-316998, also approved a separate Compliance System Usage Fee. Both fees are intended to support the City’s labor standards enforcement responsibilities.
Advocating regulatory relief and policy reform is among the issues addressed by the Small Business Advisory Board, which works with the City to reduce regulations, streamline permitting and reduce taxes for small businesses.
Among its previously reported accomplishments is promoting a reduction in the annual Business Tax Certificate charge from $70 to $34 for businesses with 12 or fewer employees. The City’s current fee schedule confirms that the $34 rate remains in effect. Businesses with 13 or more employees pay $125 plus $5 per employee. Other applicable charges may apply.
The board has also helped guide the Economic Development Department’s development of the Small Business Enhancement Program, which supports business districts and commercial corridors.
During its September meeting, the board received information from the Department of Environmental Health and Quality concerning food facility permitting, plan review requirements and health permit applications. The presentation covered documentation, inspections and the scoring and grading system used for food facilities.
Flood preparedness was another priority. City staff reported ongoing efforts to maintain storm drains and channels and reduce flood risks across San Diego.
Businesses were encouraged to identify areas vulnerable to flooding, protect records and inventory, review insurance coverage and lease responsibilities, and develop emergency plans. Economic Development Department staff also outlined plans to conduct business walks in communities affected by the 2024 floods to provide preparedness information.
The board also received an update on the fiscal year 2027 Capacity Building Grant program, which supports nonprofit organizations working to strengthen small businesses, commercial corridors and neighborhoods in under-resourced communities.
According to the September meeting minutes, the Small Business Track received 33 applications and the Community Growth Track received 72 applications. Award determinations were anticipated in early November.
Board members also discussed recent lawsuits against small businesses involving Americans with Disabilities Act compliance and expressed interest in receiving a presentation from an ADA compliance representative.
The Small Business Advisory Board generally meets on the fourth Tuesday of each month at 8:30 a.m. Meetings are open to the public, and individuals and community organizations may address issues affecting local small businesses. Meeting locations and agendas are published on the City’s website. Public comments may also be submitted online.
