Los Angeles approves $30 minimum wage for airport, hotel workers

The Los Angeles City Council on Wednesday approved a $30 an hour minimum wage hike for airport and hotel workers, which will be enacted by 2028 in time for the Olympics. City council members approved the measure in a 12-3 vote. While union officials praised the approval, those working in the hospitality industry vigorously opposed the legislation and warned that the pay increase could result in mass layoffs, increased costs for consumers, and hotels shutting down.

According to the Olympic Wage ordinance, hourly pay will increase by $2.50 each year until 2028, where it will cap at $30 per hour. The first increase will occur on July 1, 2025, at an amount of $22.50 an hour, as stated in the measure. The current minimum wage is set at $20.00 per hour.

American Hotel and Lodging Association CEO Rosanna Maietta issued a warning about the proposal last month. She stated at the time, according to California Globe: "Hotel employees in Los Angeles are paid the highest wages in the country, but right now their jobs are at risk. City leaders are considering a damaging proposal that will jeopardize these jobs; it would devastate much needed tourism related tax revenue and lead to the closure of hotels that are desperately needed to successfully host the 2026 World Cup, the 2027 Super Bowl, and the 2028 Olympics."

Despite the opposition, Los Angeles lawmakers overwhelmingly rejected the concerns and called the passing of the bill a "win" for the working class.

"This is what it looks like when people come together and fight - we win," said Los Angeles City Councilman Hugo Soto-Martinez, who voted to approve the ordinance. "For too long, the workers who make this city run have been treated as disposable. This ordinance makes it clear if you work in this city, you deserve to live in this city - with dignity, healthcare, and a living wage."

Jessica Durrum, deputy director of Los Angeles Alliance for a New Economy (LAANE), echoed a similar sentiment, stating that the "common sense" measure was critical to ensure that "tourism workers can afford to live in the city where they work and not be displaced by skyrocketing housing costs."

While the majority of council members approved the bill, councilwoman Monica Rodriguez was not one of them. She explained to the paper that she opposed the increase because it lacked "fiscal foresight" and could elevate unemployment.

"This policy imposes a significant wage and health benefit increase overnight that will inevitably result in higher hotel rates, reduced hours for hotel workers, and job losses-not just in hotels, but across businesses that rely on tourism: restaurants, retail, attractions, and our struggling commercial corridors," said Rodriguez. "Tying the wage increase to the 2028 Olympics may sound appealing, but the reality is that many of those events are happening outside city limits, yet this increase only impacts the City of Los Angeles, making our hotels less competitive and undercutting our ability to attract tourists resulting in a loss of TOT, taxes and other economic impacts that the City will lose as we are facing a $1 billion deficit and laying off workers."

"My concern remains that we are on a path to having the highest-paid unemployed workforce in the country, where wages go up, but job opportunities disappear because we failed to think through the economic impact on our small businesses, hotels, and the broader tourism sector," she added.

Last year, California raised its minimum wage to $20 per hour, which resulted in more than 10,000 layoffs for restaurant industry workers in a span of just a few months due to the pay increase. Conservative lawmakers and hospitality industry officials have historically warned against such pay increases.