San Diego's minimum wage is raising in 2025

Driving the news: On Jan.1, San Diego's minimum wage will increase from $16.85 an hour to $17.25.

• That's more than California's minimum wage, which will increase to $16.50 in 2025.

The intrigue: Typically, increasing the wage floor for the lowest earners pushes up pay for those who make a bit more than the minimum, as employers have to adjust pay scales upwards, Axios' Emily Peck reports.

Flashback: San Diego's City Council passed a minimum wage increase in 2014, but business groups led by the Chamber of Commerce collected enough signatures to force voters to weigh in on the hike.

• That delayed the proposal for two years, but voters ultimately approved it with 64% support.