News Summary
The Los Angeles City Council has approved a new wage ordinance, setting the minimum wage for hotel and airport workers at $22.50, with incremental increases planned up to $30 by 2028. Despite opposition from business groups attempting to repeal the increase, the ordinance aims to support hospitality workers amid rising living costs. Labor unions and workers advocate for this wage hike as essential to meet economic demands, while business coalitions consider other initiatives to challenge the ordinance.
Los Angeles – The City Council of Los Angeles has advanced a new wage ordinance that significantly raises the minimum wage for hotel and airport workers in the city. The law, known as the “Olympic Wage,” sets the minimum hourly wage at $22.50 starting this year. This wage is set to rise incrementally, reaching $30 per hour by July 2028, the same year the city is set to host the Olympic Games.
This decision comes after a coalition of business groups attempted to repeal the wage increase through a referendum. However, they fell short of gathering the necessary valid signatures, with the final count at approximately 84,000 valid signatures, falling short of the 93,000 required by city regulations. The city clerk’s office confirmed that the petition did not meet the threshold for a referendum.
The increment increase of the minimum wage for qualified workers will occur in a series of steps—moving to $25 in 2026, $27.50 in 2027, and finalizing at $30 by 2028. The wage ordinance specifically covers hotels with more than 60 rooms and businesses functioning at Los Angeles International Airport (LAX).
A substantial part of the funding used to oppose the wage increase originated from major corporations, including United Airlines, Delta Airlines, and the American Hotel and Lodging Association. These entities had hoped to mitigate wage hikes for their employees through a successful referendum.
As the referendum effort collapsed, a significant issue arose from more than 117,000 individuals who signed the petition later requested to withdraw their names, which negatively impacted the petition’s overall validity. This move was challenged by the L.A. Alliance for Tourism, Jobs and Progress, which alleged that the unions operating the signature withdrawal efforts misled voters. In response, labor unions such as UNITE HERE Local 11 and SEIU-United Service Workers West filed complaints regarding misleading practices by petition circulators.
Despite the failed referendum, proponents of the wage increase maintain that the increase is crucial for workers in the hospitality industry to cope with the high living costs in Los Angeles. Research indicates that residents require close to $28 per hour to afford a basic standard of living considering current economic conditions.
Labor leaders are collaborating to ensure that the minimum wage aligns with inflation and reflects necessary cost-of-living adjustments as the city approaches the Olympic Games. The support from labor unions has been a significant driving force in defending the wage increase against opposition.
Furthermore, the business coalition opposing the wage hike has indicated plans to explore other ballot initiatives aimed at instigating changes that could benefit their interests and potentially alter the existing wage structure.
This development in Los Angeles underscores the ongoing conflict between labor rights and business interests in a city facing skyrocketing living costs. As the situation evolves, the implications for both workers and employers are likely to resonate throughout the local economy and beyond.
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Additional Resources
- LAist: Los Angeles Hospitality Workers Pay Raise
- Los Angeles Times: Minimum Wage Repeal Bid Fails
- Hotel Dive: Los Angeles $30 Minimum Wage Proceeds
- Travel Weekly: Hotel Industry Fails to Stop $30 Minimum Wage
- Wikipedia: Minimum Wage
Author: STAFF HERE LOS ANGELES WRITER
LOS ANGELES STAFF WRITER The LOS ANGELES STAFF WRITER represents the experienced team at HERELosAngeles.com, your go-to source for actionable local news and information in Los Angeles, Los Angeles County, and beyond, specializing in "news you can use" with coverage of product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise from years of dedicated reporting and strong community input, including local press releases and business updates, while delivering top reporting on high-value events like the Academy Awards, LA Auto Show, and Los Angeles Marathon, extending coverage to key organizations such as the Los Angeles Area Chamber of Commerce and the Los Angeles Tourism & Convention Board, plus leading businesses in entertainment and technology like Warner Bros. and SpaceX, and as part of the broader HERE network including HEREAnaheim.com , HERECostaMesa.com , HEREHuntingtonBeach.com , and HERESantaAna.com , providing comprehensive, credible insights into Southern California's dynamic landscape. HERE Anaheim HERE Beverly Hills HERE Coronado HERE Costa Mesa HERE Hollywood HERE Huntington Beach HERE Long Beach HERE Los Angeles HERE Mission Viejo HERE San Diego HERE Santa Ana
