In a 12-3 vote on Wednesday, the Los Angeles City Council approved a minimum wage hike for airport and hotel workers, with the goal of it reaching $30 an hour by 2028 in time for the Olympics.
According to the Olympic Wage ordinance, the minimum wage for airport and hotel workers is set to go up to $22.50 an hour in July, with it going up by $2.50 every July until July 2028, when it will peak at $30 an hour. In addition, employers will also be required to pay $8.35 for each hour payment to cover health care costs by January 2026. A housekeeping training requirement will go into effect as well, giving at least 6 hours worth of training a year, telling them what to do in an emergence, how to respond to human trafficking, violence, and other serious situations.
Hotel and airport workers in Los Angeles have been trying to get a significant wage increase for years. Previously, many hotel workers fought to get a raise to over $11 an hour in 2023. However, a rapidly increasing cost of living in Los Angeles, compounded by recent rent jumps and Los Angeles hosting several major events in the coming years including the 2026 World Cup, the 2026 NBA All-Star Game, the 2027 Super Bowl and the 2028 Olympics, reinvigored unions, primarily Unite Here, and employees to demand another increase. Many were inspired to do so by AB 1228, which increased the fast food minimum wage to $20 an hour last year.
While the hotel, airport, and tourism industry vigorously opposed the increase, it nonetheless moved forward in the Los Angeles City Council, culminating in a 12-3 vote on Wednesday. Union officials and some lawmakers praised the move, saying that it would help keep workers in LA and would benefit the local economy.
“City leaders have an opportunity to ensure the Olympic and Paralympic Games benefit hard-working Angelenos, and this ordinance does just that,” said Unite Here Local 11 co-president Kurt Petersen on Wednesday.
“This policy updates existing laws to ensure that the workers who keep Los Angeles’ profitable tourism industry running are healthy and housed,” added Los Angeles Alliance for a New Economy (LAANE) deputy director Jessica Durrum. “As Los Angeles prepares to host a wave of megaevents leading up to the 2028 Olympics, this is a critical measure to make sure that tourism workers can afford to live in the city where they work and not be displaced by skyrocketing housing costs.
“It’s also a commonsense measure that will enrich the entire city because when workers have more money in their pockets, they spend it in the local economy. We know for a fact that the tourism industry has thrived after past similar wage increases, and that there are positive economic impacts. In terms of this new policy, an economic impact study commissioned by Los Angeles City Council found that this new law will result in an estimated increase of over $1.2 billion in income regionally by 2028, with approximately two-thirds of the wage gain spent locally.”
“This is what it looks like when working people come together and fight – we win,” explained Los Angeles City Councilman Hugo Soto-Martinez. “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, health care, and a living wage.”
However hotel and airport groups, as well as some lawmakers, warned that the massively increased wages would result in some hotels shutting down, airports and hotels firing some of the affected workers as other solutions are found, increased costs for consumers, and the reduction of hours so that their employers would not need to pay for benefits. Notably, they have have recent precedent for this happening as it was exactly what fast food companies have done to stay afloat in California with AB 1228 and the $20 fast food minimum wage in place.
Los Angeles City Councilwoman Monica RodriguezIn recent months, the situation grew even worse. A massive drop in tourism to California beginning in February means that L.A. now has fewer tourists coming in, with hotels and airports bearing the costs of the higher wages as there are fewer customers to offset them. Many planned hotels have also been put on hold with developers awaiting the results of the wage increase. With the increase passed, some major projects, like the expansion of the Hilton Los Angeles Universal City Hotel, may now not happen, putting the city even further into a bind when it comes to hotel space for the 2028 games and other upcoming events.
“Hotel employees in Los Angeles are paid the highest wages in the country, but right now their jobs are at risk,” explained American Hotel and Lodging Association CEO Rosanna Maietta last month. “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.”
“I opposed this increase because while the intent may be well-meaning, the execution lacks fiscal foresight,” added Los Angeles City Councilwoman Monica Rodriguez following the vote. “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. 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, were 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.”
Currently, the wage increase isn’t a done deal just yet. The City Council needs to approve it again in a second vote next week. Should it pass again, it will then be put into effect
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