About the Wage
The San Diego City Council passed the Living Wage Ordinance on April 12, 2005, following six years of advocacy by CPI and many other local organizations and individuals. The ordinance requires any company with city service contracts or doing business at city facilities to:
- Pay all workers at least the Living Wage, adjusted annually for inflation.
- Provide health coverage or pay a differential of $2 an hour.
- Provide 10 paid sick days a year.
In 2009, the Living Wage requirements applied to 43 contractors with city contracts totaling $31.3 million, primarily for landscaping, janitorial services, security and maintenance.
The Living Wage regulations enacted five years ago have worked well for the City, for employers, and for local working families struggling to make ends meet in high-cost San Diego.
The measurable human impact is dramatic:
- Almost 1000 local residents now earn the Living Wage, which is $27,456 a year for a full-time job. Compared to the $16,640 annual total on minimum wage, that’s enough difference to move a family from below poverty to self-sufficiency.
- Hundreds of those workers now receive health coverage through their employers, and the rest receive $2 an hour toward buying their own coverage.
Businesses also have benefited. Nearly half of the employers required to pay the Living Wage self-reported that it has improved their company’s quality of service. And 46% say it has reduced absenteeism or turnover.
The cost to the city has been miniscule. In fiscal year 2009, the total of increased contract costs and staff time for Living Wage administration and enforcement added less than one-tenth of 1% to the City budget.
