● Household Spending: San Diego households spend $91,204/year, with housing consuming 37.9% (~$34,554/year ≈ $2,880/month) vs. 33.1% nationally. ● Living Wage: A family of four needs $35.72/hour per adult (~$148,594/year before taxes) to meet basic needs in San Diego County. ● Rent Burden: About 43.4% of households are cost-burdened, paying ≥30% of income toward housing. ● Housing Wage: To afford a 2-bedroom at FY 2025 HUD FMR ($2,881/month), workers must earn $54.48/hour full-time. Why that impacts salary: Pay must reflect real living costs, if companies want to attract and retain talent. Cost of Living Insights Federal Overtime Tax Deduction (2025–2028) ● Workers can now deduct up to $12,500 (single) or $25,000 (joint) of overtime earnings from federal taxable income. ● Applies to tax years 2025 through 2028. ● Especially relevant in overtime-heavy industries like manufacturing. Why that impacts salary: Employers may face less pressure for base wage increases. Captive Audience Meeting Bans (multi-state trend) ● Laws now prohibit employers from forcing workers to attend anti-union or political meetings. ● States with bans include CA, NY, IL, OR, WA (and momentum is spreading). ● Reduces employers’ ability to influence workers during union campaigns. Why that impacts salary: Union drives typically result in higher negotiated wage floors. MMEDS Act ● A 2025 bill (H.R. 3042) proposes tax credits for wages, benefits, and facilities. ● Targets distressed zones to encourage onshore med-device manufacturing. ● Designed to reduce reliance on overseas supply chains. Why that impacts salary: Creates wage competition for specialized med-device workers. Legislation Insights ● Manufacturing makes up about 1 in 10 private-sector jobs in the region. ● San Diego’s manufacturing ecosystem is highly fragmented and competitive. Why that impacts salary: Smaller companies competing with larger employers must offer competitive pay to secure talent. San Diego Insights California Minimum Wage & Exempt Thresholds ● As of Jan 1, 2025, CA’s minimum wage increased to $16.50/hour. ● The exempt salary threshold also rose to $68,640/year (≈ $5,720/month). ● Roles below this threshold cannot legally be classified as exempt. ● Employers must decide to reclassify positions or increase salaries. Why that impacts salary: Raises entry-level pay floors and compresses pay bands upward. Wage Insights Request A Custom Salary Guide