LA City Council Committee Reviews $30 Minimum Wage for Tourism Workers
Despite concerns about potential negative economic impacts, the Los Angeles City Council voted late last year to direct the city attorney to draft an ordinance that would raise the minimum wage for airport and hotel workers to $30 per hour by 2028.
This decision comes as the city prepares to host major events such as the 2026 FIFA World Cup, the 2027 Super Bowl, and the 2028 Summer Olympics. The wage increase would be implemented gradually, starting with $22.50 per hour in February 2025, increasing to $25 in 2026, $27.50 in 2027, and finally $30 in July 2028.
What’s in the Proposal?
The motion, introduced by City Council members Curren Price and Katy Yaroslavsky, would increase the minimum wage for workers in the tourism sector to $30 by 2028.
It was seconded by fellow Councilmembers Heather Hutt, Tim McOsker, Marqueece Harris-Dawson, and Hugo Soto-Martinez.
The proposal describes tourism workers as some that work at LAX and employees of hotels with over sixty guest rooms. Currently, the minimum wage for large hotel workers is over $18, nearly two dollars higher than the standard minimum wage in the city.
Backed by unions such as Unite Here Local 11 and SEIU-United Service Workers West, the proposal argues that workers in one of the city’s most prominent industries deserve higher wages.
Advocacy and Opposition
Business leaders and organizations, including the Hotel Association of Los Angeles, BizFed, and several chambers of commerce, have voiced strong opposition.
They argue that the hospitality sector is still recovering from the COVID-19 pandemic and that the proposed wage increases could significantly strain the industry.
What’s Next?
The City Attorney's Office has drafted an ordinance that the LA City Council Economic Development and Jobs Committee is currently reviewing. It will then go to the City Council for final approval.
The draft ordinance has been criticized by some council members and business leaders who argue it could harm the city's economic recovery and lead to significant job losses and business closures.
For example, BizFed reports that this wage hike would lead to an estimated $1.1 billion decline in spending and 15,000 job losses.
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