SAN DIEGO (KGTV) — A proposed minimum wage increase for hospitality workers in San Diego has some small business owners worried they'll be caught in the crossfire between labor advocates and large corporations.
Action Sport Rentals has been operating in San Diego for three decades, renting jet skis, kayaks, and boats out of five local resorts. But owner Steve Pinard fears a $25 minimum wage proposal could put him out of business.
"I assume you would raise rates to offset the minimum wage, but if I do that, I'd be a fair amount more expensive than my competition right next door," Pinard said.
On Tuesday, the San Diego City Council will discuss raising the minimum wage for some hospitality workers. Thousands of employees currently making around $17 an hour would eventually see their wages increase to $25 an hour by 2030.
The proposal targets large tourism businesses, including hotels with 150 rooms or more, amusement parks with at least 75 acres, and event centers. Companies that would be affected include SeaWorld, Petco Park, Pechanga Arena, and the San Diego Convention Center.
For workers like Nicholas Gegan, an audio technician at Paradise Point who would benefit from the wage increase, the proposal represents financial relief.
"I have plenty of coworkers who have wondered where their next meal was coming from sometimes," Gegan said.
Gegan works three jobs, seven days a week, just to get by.
"All we're asking for is enough to be able to survive on our own, to be able to support our families to live a decent life," Gegan said.
However, the measure could also impact small, locally owned companies like Pinard's that operate inside these larger corporations.
"That's really my issue, I'm being thrown in with these multi-billion dollar out-of-town hotels and the Padres," Pinard said.
He remains hopeful that small businesses will be protected.
"There's no way it's going to be for me, because I'm not a big hotel, obviously they'll carve something out," Pinard said.
Pinard plans to attend the council meeting on Tuesday to push for an exemption so his business can stay afloat.
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