Municipalities or cities are allowed to set their own minimum hourly wage for all work performed within the geographical boundaries of that city. The minimum wage within the city limits of San Diego, which should not be confused with the entire County of San Diego, increased from $13.00 per hour up to $14.00 per hour on January 1, 2021.
Meanwhile, the minimum hourly wage for employees performing work within the entire State of California increased on January 1, 2021 to $14.00 per hour for employers with 26 employers or more, but only increased up to $13.00 per hour for employers with 25 or less employees.
Because differences may exist between a city, state, or even federal minimum wage, it is important to examine all of the applicable minimum wage laws to determine what minimum wage rate employees are entitled to. Typically, employees are entitled to the highest of the overlapping applicable hourly minimum wage rates, regardless of whether it comes from a city, state, or federal law.
(See Link(s): Labor Code Section 1182.12; Industrial Welfare Commission Wage Orders; and San Diego Minimum Wage Program.)