● The average San Diego household spends approximately $75,000–$80,000/year on expenses, with 35–38% allocated to housing. ● The estimated “living wage” for a family of four is roughly $110,000–$116,000/year to meet basic needs. ● Housing affordability remains a significant challenge, with many households considered cost-burdened. Why this impacts salaries: Elevated housing costs and living-wage thresholds push employers to offer higher, more competitive wages to attract and retain talent in a high-cost market. Cost of Living Insights SB 294 – Workplace Know Your Rights Act Notices ● Starting Feb 1, 2026, employers must provide an annual “Know Your Rights” notice to employees. ● Must cover workers’ comp, immigration protections, union/concerted activity, and rights during law enforcement interactions. ● Must be provided in the employee’s workplace communication language. ● Employees must be able to designate an emergency contact by March 30, 2026. Why that impacts salary: Adds compliance workload and accelerates onboarding/policy standardization. SB 617 – Cal-WARN Notice Updates ● Effective Jan 1, 2026, Cal-WARN notices must include expanded required details. ● Must include local workforce board coordination info and CalFresh assistance contacts. ● If coordinating services, employers must arrange them within 30 days. Why that impacts salary: Increases risk and admin demands during workforce reductions. Legislation Insights ● San Diego’s advanced manufacturing sector employs approximately 115,000–120,000 workers, supported by strong defense, life sciences, and technology clusters. ● The sector remains stable, though growth is expected to be modest amid broader economic shifts. ● Average earnings for advanced manufacturing roles exceed $95,000 annually, outperforming many local industries. Why that impacts salary: High skill requirements and strong cross-industry competition mean employers must maintain competitive pay to secure specialized talent despite slower sector growth. San Diego Insights California Minimum Wage & Exempt Thresholds ● As of Jan 1, 2026, California’s minimum wage is $16.90/hour (up from $16.50 in 2025). ● The exempt salary threshold increases to $70,304/year (≈ $5,859/month) because exempt employees must earn at least 2x minimum wage. ● Roles below this threshold cannot legally be classified as exempt. ● Employers must decide whether to reclassify positions (nonexempt) or increase salaries to remain compliant. Why that impacts salary: A higher wage floor raises entry-level pay and creates upward pressure on pay bands—often compressing wage structures and increasing labor costs for hourly-heavy industries. Wage Insights Request A Custom Salary Guide