Wage increase for LA tourism workers gets preliminary approval

Tourism workers set for big raise

The City Council Wednesday will vote on a proposal to boost the minimum wage for hotel and airport workers with the intent of reaching $30 an hour by 2028 in time for the Olympic and Paralympic Games.

LOS ANGELES - Los Angeles City Council preliminarily approved a proposal to increase the minimum wage for hotel and airport workers to $30 an hour by 2028, coinciding with the Olympic and Paralympic Games. 

The plan includes incremental wage increases and additional health care payments, but faces criticism from industry leaders concerned about potential business closures.

What we know:

In a 12-3 vote, council members authorized updates to the city's Living Wage and Hotel Workers Minimum Wage ordinances, which regulate the minimum wage for such workers. 

Under the changes, hotel and airport employees would receive $22.50 an hour starting July, with gradual increases reaching $30 an hour by 2028. 

Employers would also be required to provide an $8.35 per hour health care payment starting in 2026. 

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The plan includes a public housekeeping training requirement for hotels with more than 60 rooms.

Visit California reported a decline in statewide travel, with air travel to California dropping significantly from Canada, Mexico, and the United Kingdom.

Despite previous growth in tourism, Gov. Gavin Newsom forecasted a decline in visitation for 2025.

The other side:

Industry leaders, including Rosanna Maietta of the American Hotel and Lodging Association, have criticized the proposal, arguing it could lead to job losses and hotel closures, impacting tourism-related tax revenue. 

"Hotel employees in Los Angeles are paid the highest wages in the country, but right now their jobs are at risk," Maietta said. 

"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."

SUGGESTED: LA tourism workers to receive increase in minimum wage

Mark Davis of Sun Hill Properties Inc. warned that a planned $250-million expansion of the Hilton Los Angeles Universal City Hotel could be canceled if the wage increase is approved.

What they're saying:

Councilman Soto-Martinez dismissed concerns from industry leaders, noting that competitors like the Sheraton Universal Hotel already pay higher wages to unionized workers.

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Kurt Petersen of Unite Here Local 11 supports the measure, stating it would benefit working families and boost the local economy during the Olympic and Paralympic Games.    

What's next:

The matter will return to the City Council on May 23 for a second vote.